Wed Sep 18 15:50:12 UTC 2024: ## Government Launches NPS Vatsalya, a New Pension Scheme for Children

**New Delhi:** Finance Minister Nirmala Sitharaman has launched the NPS Vatsalya Scheme, a new initiative aimed at strengthening the financial future of children. The scheme, an extension of the National Pension Scheme (NPS), allows parents to contribute to a pension fund for their children, providing them with financial security for the future.

The scheme was announced during the Union Budget 2024-25 and has been launched with an online platform for investment. A dedicated booklet has also been released to offer detailed information on the scheme.

**Key Features of NPS Vatsalya:**

* **Permanent Retirement Account Number (PRAN):** Minors participating in the scheme will be issued PRAN cards.
* **Government Contribution:** The scheme operates similarly to the NPS, allowing individuals to contribute to a retirement fund over their career.
* **Early Investment, High Returns:** The scheme offers the potential for high returns with early investment. For example, investing ₹15,000 per month for 15 years for a 3-year-old child, with an estimated annual return of 14%, could yield approximately ₹91.93 lakh after 15 years.
* **Account Control:** Upon reaching the age of 18, the account will be transferred to the child’s control.

The NPS Vatsalya scheme offers parents a valuable opportunity to secure their child’s financial future. By contributing to a pension fund from an early age, parents can ensure their children have a strong financial foundation for future needs, including education, career, and retirement.

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