New Delhi: On Wednesday, 18th September, Union Finance Minister Nirmala Sitharaman will officially launch the NPS-Vatsalya scheme, a significant new initiative aimed at securing the financial future of minors through pension planning. The launch will take place in the national capital, where the Finance Minister will release the scheme’s brochures and distribute Permanent Retirement Account Number (PRAN) cards to new subscribers.
The event will also see the participation of key officials including the Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Deepak Mohanty, Minister of State for Finance Pankaj Chaudhary, and Nagaraju Maddirala, Secretary of the Department of Financial Services. The launch will be simultaneously broadcast to around 75 locations across the country, where new PRAN cards will also be distributed to minor subscribers via video conference.
NPS Vatsalya has been specially designed to help parents or guardians invest in a pension account on behalf of their children, providing them with financial security and savings for the future. The scheme offers flexible contribution and investment options, allowing parents to begin saving with as little as Rs 1,000 annually. This low minimum contribution makes it accessible to families from all financial backgrounds.
During her budget speech in July, Nirmala Sitharaman highlighted the importance of the NPS Vatsalya scheme, which allows parents to contribute to their child’s pension account. Once the child reaches adulthood, the Vatsalya account can be converted into a regular National Pension Scheme (NPS) account, providing them with a seamless financial future.
The NPS Vatsalya scheme caters to those under the age of 18, marking a significant shift from the previous NPS policy, which required account holders to be between 18 and 70 years of age. Under the new scheme, parents or guardians can contribute a minimum of Rs 500 per month or Rs 6,000 annually until the child reaches the age of 18. After this, the account will be transferred to the child, who can then manage their own contributions and investments.
This initiative not only supports pension planning but also helps parents ensure their children’s future financial security. With its focus on flexible investment options and accessibility, NPS Vatsalya represents a forward-thinking approach to saving for the next generation.
The programme launch in Gandhinagar is expected to attract over 10,000 participants, including government representatives, industry leaders, and financial experts. Vice President Jagdeep Dhankhar is expected to attend the closing day of the event. This marks the first time such a scheme has been launched outside Delhi, showcasing the government’s commitment to nationwide financial inclusion.
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