New Delhi: Union Finance Minister Nirmala Sitharaman is set to inaugurate the Centre’s NPS (National Pension System) Vatsalya Scheme today, September 18, at an event in Delhi.
A finance ministry statement reads, “Following 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, with school children also participating in the event.”
The Central Government introduced the NPS Vatsalya Scheme in the Union Budget 2024. The statement also noted that audiences from various locations, including school children, will join the Delhi event virtually.
During the launch, the Finance Minister will unveil the scheme brochure and an online portal for NPS Vatsalya subscriptions. She will also hand out PRAN cards to new minor subscribers. NPS Vatsalya events are planned at about 75 locations across India, with other sites connecting to the launch through video conferences to distribute PRAN memberships to new minor subscribers there.
The NPS Vatsalya Scheme is hailed as a significant advancement in the pension sector. Reports suggest that this new scheme aims to safeguard the financial future of children. The Pension Fund Regulatory and Development Authority, which promotes, develops, and regulates organized pension funds in India, will administer the scheme. It enables parents and guardians to invest in a pension account for their child’s future security.
With the NPS-Vatsalya Scheme, a parent or guardian can open an account in the name of a child with a minimum of Rs 1,000. Subsequently, until the child turns 18, the parent or guardian must deposit at least Rs 1,000 annually into the child’s NPS-Vatsalya account.
The State Bank of India Pension Fund platform indicates that there is no cap on the maximum deposit for this account. The NPS Vatsalya Scheme may be transitioned to a non-NPS scheme once the child reaches 18, allowing them to manage the account on their own. Additionally, the SBI Pension Fund website mentions the availability of a partial withdrawal feature, which can be utilized up to three times.
