Nirmala Sitharaman Unveils NPS-Vatsalya Scheme on September 18 for Future Pensions
Nirmala Sitharaman Launches NPS-Vatsalya Scheme
On September 18, Union Finance Minister Nirmala Sitharaman will inaugurate the NPS-Vatsalya scheme in Delhi, aimed at improving pension schemes for minors. This event will see the attendance of Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), along with other dignitaries.
Key Features of the NPS-Vatsalya Scheme
- Parents and guardians can contribute to the retirement savings of their minor children.
- Accounts can be opened for NPS-Vatsalya from infancy, allowing early investment in future pensions.
- Once the child turns 18, the account will automatically convert into a regular NPS account.
- Minimum monthly contributions start from ₹500 or an annual contribution of ₹6,000.
FM Sitharaman emphasized the flexibility of this innovative program during her budget speech in July. With the power of compounding, parents can significantly boost their children’s retirement benefits over time.
Encouraging Broader Participation
All parents and guardians, including Indian citizens, NRIs, and OCIs, are eligible to open an NPS-Vatsalya account for their children. This step will encourage broader financial planning across demographics.
FM Sitharaman mentioned the ongoing review of the NPS and expressed confidence in maintaining fiscal prudence while developing solutions that cater to the public’s interests.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.