Wed Sep 18 04:22:55 UTC 2024: ## India Launches New Pension Scheme ‘Vatsalya’ for Children

**New Delhi:** Finance Minister Nirmala Sitharaman launched the New Pension Scheme (NPS) ‘Vatsalya’ on Wednesday, aiming to help parents secure their children’s financial future. The scheme, announced in the Union Budget 2024, allows parents to contribute towards an NPS account for their children, building a retirement fund for them.

The launch event in New Delhi was accompanied by simultaneous events at nearly 75 locations across India. The Finance Minister also unveiled an online platform for subscribing to NPS ‘Vatsalya’, released a scheme brochure, and distributed PRAN cards (Permanent Retirement Account Number) to new minor subscribers. Other locations joined the launch through video conferencing and distributed PRAN cards to their new subscribers as well.

“NPS ‘Vatsalya’ allows parents to save for their children’s future by investing in a pension account, ensuring long-term wealth with the power of compounding,” stated the Ministry of Finance.

The scheme offers flexible contributions and investment options, with parents required to invest a minimum of Rs 1,000 annually in their child’s name. This makes it accessible to families across all economic backgrounds.

The launch of NPS ‘Vatsalya’ marks a significant step in India’s pension system, encouraging early financial planning for children. The scheme will be administered by the Pension Fund Regulatory and Development Authority (PFRDA).

The Ministry emphasized that the scheme reflects the Union government’s dedication to promoting long-term financial planning and security for all. Under NPS ‘Vatsalya’, children can withdraw a portion of their accumulated corpus as a lump sum upon reaching maturity, with the remaining balance disbursed as regular pension payments.

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