New Delhi. Union Finance Minister Nirmala Sitharaman will launch the NPS-Vatsalya scheme today. This scheme will be launched at 75 places across the country including Delhi. Other places will join through video conference. On this occasion, Permanent Retirement Account Number (PRAN) cards will also be issued to the minor members joining the scheme.
Mandatory guidelines related to the scheme will also be issued. It is worth noting that Finance Minister Nirmala Sitharaman had announced the launch of this scheme while presenting the full budget for the financial year 2024-25 in July.
This new initiative is being started to secure the financial future of children, it is an important step in the pension system of the country. This scheme of the government will be operated by the Pension Fund Regulatory and Development Authority (PFRDA).
You must register on the online platform
The Finance Minister will launch the online platform for NPS Vatsalya Yojana. Here the parents of the child will have to register. After completing this process, a permanent retirement account number will be issued.
People from all economic backgrounds will be able to benefit
Parents can invest a minimum of Rs 1,000 annually in this scheme in the name of the child. This will make the scheme accessible to families from all economic backgrounds. The power of compound interest can significantly increase returns over a long investment period.
What is NPS Vatsalya
The scheme has been specially designed for the youth. Under this, parents or guardians can open an account for their minor children and make long-term savings for their retirement. After attaining adulthood, this scheme can be converted into a regular NPS account.
Who will be eligible
All parents and legal guardians, whether Indian citizens, NRIs or OCIs, are eligible to open an NPS-Vatsalya account for their minor children. The parents will be entitled to operate it until the child attains majority.
