Union Finance Minister Nirmala Sitharaman is scheduled to launch the Centre’s NPS (National Pension System) Vatsalya Scheme today, ie- September 18 in a Delhi event. According to a finance ministry release- “In pursuance of the announcement in the Union Budget 2024-25, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will launch the NPS Vatsalya scheme on September 18, in New Delhi. School children will also join the launch.”
The Central Government talked about the NPS Vatsalya Scheme in the Union Budget 2024. The finance ministry release also mentioned that audiences at other locations, including the school children, will virtually join the Delhi broadcast.
At the launch event, the Finance Minister will release the scheme brochure and reveal an online portal for subscribing to NPS Vatsalya. The minister will also distribute PRAN cards to new minor subscribers. NPS Vatsalya events will be organised at nearly 75 locations in India. Other locations will join the launch via video conference and distribute PRAN membership to new minor subscribers in that location.
NPS Vatsalya Scheme is considered a monumental step in the pension system. According to the reports, this new scheme has been started to secure the financial future of children. The Pension Fund Regulatory and Development Authority will manage this scheme. The Pension Fund Regulatory and Development Authority promotes, develops, and regulates organised pension funds in India. This scheme will allow parents and guardians to secure their child’s future by investing in a pension account.
About the NPS Vatsalya Scheme
Under the NPS-Vatsalya Scheme, a parent or guardian will be able to open an account in the child’s name with a minimum amount of Rs 1,000. After that, till the age of 18 years, the parent or guardian will have to deposit a minimum of Rs 1,000 in the child’s NPS-Vatsalya account every year.
According to the State Bank of India Pension Fund platform, there is no limit on the maximum amount deposited in this account. NPS Vatsalya Scheme can also be converted into a non-NPS scheme when the child turns 18. They can then manage the account independently. According to the SBI (State Bank of India) Pension Fund website, there is a partial withdrawal option available as well. This can be availed 3 times.
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