Fri Sep 20 12:16:51 UTC 2024: ## Government Launches NPS Vatsalya: A Pension Scheme for Minors

**New Delhi, September 20, 2024:** Union Finance Minister Nirmala Sitharaman unveiled NPS Vatsalya, a new pension scheme designed specifically for minors, in line with the July Union Budget 2024 announcement. The scheme has been rolled out across 75 locations nationwide, with over 250 PRANs (permanent retirement account numbers) allocated to young subscribers.

NPS Vatsalya encourages parents to invest a minimum of ₹1,000 per month for their children with no upper limit, fostering a habit of disciplined savings. The scheme is managed by parents until the child turns 18, when the account transfers to the child’s name. Upon reaching adulthood, the account can be converted into a regular NPS account or another non-NPS scheme.

Sitharaman highlighted the potential for significant wealth accumulation through compounding, ensuring a dignified and secure financial future for subscribers. She emphasized that the scheme aligns with the government’s commitment to comprehensive financial well-being.

“NPS Vatsalya will encourage young subscribers to develop savings habits,” said Sitharaman. “The power of compounding can build substantial wealth, providing a respectable life for individuals in their later years.”

All minors up to the age of 18 are eligible to open an account under the scheme. The account is opened in the minor’s name and managed by their guardian until they reach adulthood, ensuring the minor remains the sole beneficiary.

Numerous banks, including ICICI Bank, Axis Bank, Canara Bank, Punjab National Bank, Central Bank of India, and Bank of Maharashtra, have introduced the pension plan for minors.

This launch follows the announcement in the Union Budget 2024-25 and is expected to significantly impact financial planning for future generations.

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