New Delhi: Finance Minister Nirmala Sitharaman will inaugurate the New Pension Scheme (NPS) ‘Vatsalya’ on Wednesday, according to an official announcement from the Ministry of Finance. Schoolchildren will attend the launch.
The policy, announced in the Union Budget 2024, will allow parents to contribute a fixed amount on their children’s behalf to the National Pension Policy (NPS) to safeguard their future and help them build a retirement fund.
According to the Ministry of Finance, NPS Vatsalya events will be held at roughly 75 locations across the country in conjunction with the introduction in New Delhi.
The Finance Minister will also launch an online portal for subscribing to NPS ‘Vatsalya’, issue a scheme booklet, and deliver PRAN cards to new minor subscribers.
Other locations will participate in the launch via video conference and will also provide PRAN (permanent retirement account number) membership to new minor subscribers in that area.
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“NPS ‘Vatsalya’ will allow parents to save for their children’s future by investing in a pension account and ensure long-term wealth with the power of compounding,” said the Ministry.
NPS ‘Vatsalya’ offers flexible contributions and investment options. Parents can invest Rs 1,000 annually in the child’s name, making it accessible to families from all economic backgrounds.
This new initiative is designed to start early in securing children’s financial future, marking an important step in India’s pension system. The scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA).
“The launch of NPS Vatsalya highlights the Union government’s commitment to promote long-term financial planning and security for all,” said the Ministry.
The scheme allows children to withdraw a portion of the accumulated corpus as a lump sum and receive the rest as regular pension payments.
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–IANS
