The Union Finance Minister will also launch online platform for subscribing to NPS Vatsalya, release scheme brochure and distribute Permanent Retirement Account Number (PRAN) cards to the new minor subscribers.
New Delhi: Finance Minister Nirmala Sitharaman is set to launch the New Pension Scheme (NPS) ‘Vatsalya’ on Wednesday, as per an official statement from the Ministry of Finance. The scheme, announced in the Union Budget 2024, allows parents to contribute to the National Pension Scheme (NPS) on behalf of their children to help secure their future and build a retirement fund.
The launch will take place in New Delhi, with NPS Vatsalya events also being organized at nearly 75 locations across India. As part of the event, the Finance Minister will introduce an online platform for subscribing to NPS ‘Vatsalya’, release a scheme brochure, and distribute PRAN cards to new minor subscribers. The initiative aims to encourage early financial planning for children’s future security.
What is the NPS Vatsalya scheme?
The National Pension System (NPS) Vatsalya scheme will allow parents and guardians of minors to make future investments in a pension account in order to save their children’s future and ensure long-term benefits. This will also help them to develop a retirement fund.
Key Features of NPS Vatsalya scheme
- The National Pension Scheme (NPS) Vatsalya scheme is accessible to all citizens of India including the NRIs, enabling them to make future investments for their minor children.
- The parents can convert their account into a regular NPS account after the minor turns 18 as it will help in accumulating their retirement fund.
- NPS ‘Vatsalya’ offers flexible contributions and investment options, allowing parents to make an investment of Rs 1,000 annually in the name of the child, thus making it accessible to families from all economic backgrounds.
- The NPS Vatsalya Scheme enables parents to save money for their child’s retirement from their infancy.
- This scheme will be managed under the supervision of Pension Fund Regulatory and Development Authority (PFRDA).
National Pension Scheme (NPS) Vatsalya Launch Event
According to the Ministry of Finance, the NPS Vatsalya launch event will take place in New Delhi. However, this event will be organized simultaneously at nearly 75 locations throughout the country. Other locations will join the event through video conferencing. School children will also be a part of the launch programme. The Union Finance Minister, Nirmala Sitharaman will head the launch event. The Union Finance Minister will also launch online platform for subscribing to NPS Vatsalya, release scheme brochure and distribute Permanent Retirement Account Number (PRAN) cards to the new minor subscribers in that location.
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