Newdelhi:18/9/24:Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman launched the National Pension System Vatsalya (NPS Vatsalya) scheme, ‘a pension scheme for minors’ at New Delhi, today. The NPS Vatsalya was announced by the Union Finance Minister in the Union Budget 2024-25 on 23rd July, 2024.
Union Minister of State for Finance Shri Pankaj Chaudhary; Shri Nagaraju Maddirala, Secretary, Department of Financial Services (DFS); and Shri Deepak Mohanty, Chairman Pension Fund Regulatory Authority of India (PFRDA) were also present besides senior officials from DFS and PFRDA along with school children, their parents, and other esteemed guests.
The launch of NPS Vatsalya was simultaneously organised at 75 locations throughout the country, with distribution of over 250 PRAN to minor subscribers. At all the locations, school-going children enthusiastically attended the event.
During the event, the Union Finance Minister also launched an online platform for subscribing to NPS Vatsalya, released the scheme brochure. Smt. Sitharaman also released a brochure, detailing the features of the NPS Vatsalya scheme. Smt. Sitharaman and Shri Chaudhary also distributed permanent retirement account number (PRAN) cards to minor subscribers who had come from different parts of the country.
In her keynote address at the launch, Union Finance Minister Smt. Nirmala Sitharaman said that the scheme will be an important constituent towards fulfilling vision of the Prime Minister, Shri Narendra Modi, in creating Viksit Bharat@2047.In his address on the occasion, Union Minister of State for Finance Shri Pankaj Chaudhary said that NPS Vatsalya scheme is a significant step by the Government towards inclusive economic development and all the institutions involved in scheme implementation were urged to ensure maximum coverage and saturation of the scheme. In his address on the occasion, Shri Nagaraju Maddirala, Secretary, DFS, underscored the imperative of collaborative approach by stakeholders including banks for effective implementation and outreach of the NPS Scheme.
In his address at the launch, Dr. Deepak Mohanty, Chairperson, PFRDA, said, “It is the Government’s forward-thinking approach, under the overarching objective of provision of social security for all, that NPS Vatsalya is launched today. It enables us to tap into the power of compound interest, potentially leading to substantial wealth accumulation over time securing the financial future of our younger generation.”
Eligibility for NPS Vatsalya as follows:
- All minor citizens (age below 18 years).
- Account can be opened in the name of a minor and operated by a parent or guardian. Minor will be the beneficiary.
- The scheme can be opened through various Points of presence regulated by PFRDA such as major banks, India Post, Pension Funds, and Online platforms (e-NPS).
- Subscribers are to make a minimum contribution of Rs 1000/- per annum. There is no limit on the maximum contribution.
- PFRDA will provide multiple investment choices to subscribers. Subscribers can take exposure in government securities, corporate debt, and equity in different proportions based on risk appetite and desired returns.
- On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.