Nirmala Sitharaman To Unveil NPS Vatsalya Scheme On 18 September
The NPS Vatsalya scheme allows parents to start early retirement savings for their children, with seamless transition to a regular NPS account upon adulthood
Union Finance Minister Nirmala Sitharaman is set to Unveil the NPS Vatsalya scheme on 18 September in Delhi. The event will feature key figures such as Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Minister of State for Finance Pankaj Choudhary, senior finance ministry officials, and Nagaraju Maddirala, Secretary of the Department of Financial Services.
The NPS Vatsalya scheme, introduced by Sitharaman during her budget speech in July, is designed for parents and guardians to contribute towards the retirement savings of their minor children. The scheme ensures a smooth transition into long-term financial planning, as once the minor reaches the age of 18, the account can be converted into a regular National Pension System (NPS) account.
Parents, guardians, NRIs, and OCIs are all eligible to open NPS Vatsalya accounts for minors, allowing them to start saving for retirement early. “One of the key benefits of the scheme is the power of compounding, which significantly boosts returns over time,” Sitharaman noted. The plan requires a minimum contribution of Rs 500 per month or Rs 6,000 annually.
The Finance Minister will also inaugurate the scheme remotely via video conference in various locations. This new initiative aims to encourage long-term savings starting from infancy, offering flexibility and growth potential for a secure financial future.
Additionally, Sitharaman noted progress made by the committee reviewing the NPS, particularly with the constructive approach of the National Council of the Joint Consultative Machinery for Central Government Employees. “A solution will be developed that ensures fiscal prudence while addressing relevant concerns,” she added during her budget speech.
