Business News: Nirmala Sitharaman Introduces NPS Vatsalya for Child Pension Savings
NPS Vatsalya launch today: Nirmala Sitharaman, the Union Minister for Finance and Corporate Affairs, unveiled the NPS Vatsalya scheme today, following the Union Budget 2024-25 announcement.
The launch event featured a new online subscription platform for NPS Vatsalya, along with the brochure release and distribution of Permanent Retirement Account Number (PRAN) cards to new minor subscribers.
Events took place at roughly 75 locations nationwide, with additional sites participating virtually, ensuring accessibility for minors to gain PRAN memberships in their localities.
Understanding NPS Vatsalya
NPS Vatsalya represents a groundbreaking initiative designed to safeguard children's financial futures from early on, marking a pivotal moment in India's pension landscape.
Eligibility extends to individuals under 18 years old, making the service accessible through straightforward registration methods like Aadhaar and Digilocker.
Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) cardholders are also welcome to join. NRI and OCI contributions can be made from NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts.
Once children turn 18, their NPS Vatsalya account transitions into a standard NPS account.
Benefits of NPS Vatsalya
- NPS Vatsalya enables parents to invest in a pension account for their children, maximizing wealth through compounding.
- It provides flexible investments, allowing contributions as low as Rs 1,000 annually in the child's name, making it feasible across economic backgrounds.
How To Open NPS Vatsalya
The fastest way to establish an NPS Vatsalya account is through the online platform (eNPS), facilitating simple registration and additional contributions.
Opening an NPS Vatsalya account is available at:
- https://enps.nsdl.com/eNPS/NPSVatsalyaPensionSystem.html
- https://app.camsnps.com/CRA/auth/enps/register?source=eNPS
- https://nps.kfintech.com/registration/subscriberRegistration/Minor
This scheme operates under the Pension Fund Regulatory and Development Authority (PFRDA). According to the Ministry of Finance, launching NPS Vatsalya significantly enhances financial security and independence for India's younger generations.
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.