Wed Sep 18 10:52:35 UTC 2024: ## India Launches NPS Vatsalya: A New Pension Scheme for Children’s Future
**New Delhi, September 18, 2024** – Union Finance Minister Nirmala Sitharaman today launched the NPS Vatsalya scheme, a new initiative designed to help parents secure their children’s financial future. This scheme, an extension of the National Pension Scheme, was announced in the Union Budget 2024-25 and is managed by the Pension Fund Regulatory and Development Authority (PFRDA).
NPS Vatsalya allows parents to invest in a pension account for their children, starting from as little as ₹1000 per year. There is no upper limit on contributions, making the scheme accessible to families from all income backgrounds.
The scheme offers flexible contribution and investment options, enabling parents to tailor their investments to their individual needs. Partial withdrawals are allowed after three years of joining the scheme, with a maximum of three withdrawals permitted before the child turns 18. These withdrawals can be used for education, health issues, disability, and other essential needs.
Upon reaching the age of 18, the child can continue the account as a regular NPS account. The account can also be closed, with 80% of the invested amount required to be invested in an annuity plan if the total amount exceeds ₹2.5 lakh. Amounts below this threshold can be withdrawn in full.
The Finance Minister also launched an online platform for the scheme, allowing citizens to subscribe and receive their Permanent Retirement Account Number (PRAN) cards.
Along with the launch in New Delhi, events are taking place at nearly 75 locations across India, with PRAN membership cards being distributed to new minor subscribers in these locations.
“The launch of NPS Vatsalya highlights the Government of India’s commitment to promote long-term financial planning and security for all,” stated the Finance Ministry in a release. “It’s a big step toward making India’s future generations more financially secure and independent.”
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