Finance Minister Nirmala Sitharaman is set to launch the NPS Vatsalya Scheme today, marking a significant step in securing the financial future of minors. According to a release from the Finance Ministry, the scheme will be introduced in line with the announcement made in the Union Budget 2024-25.

About the Launch

The event, which will take place in New Delhi, will be attended virtually by audiences from different locations, including school children. At the launch, Sitharaman will unveil the scheme brochure, introduce an online platform for subscribing to NPS Vatsalya, and distribute Permanent Retirement Account Number (PRAN) cards to new minor subscribers.

The scheme's launch will be observed at approximately 75 locations across India, with other venues joining via video conference. PRAN cards will be distributed to new minor subscribers at these locations as well.

What is NPS Vatsalya?

NPS Vatsalya was first announced in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman. It allows parents and guardians to contribute to a pension account for their minor children, providing them with PRAN cards to secure their financial future.

Designed as a government initiative to encourage early financial planning for children, NPS Vatsalya enables parents to save and invest in a pension account, leveraging the power of compounding to build long-term wealth. The scheme offers flexible investment options, starting with an annual contribution of ₹1,000, making it accessible to families from various economic backgrounds.

Once the child reaches adulthood, the plan can be easily converted into a regular NPS account, ensuring continued financial security. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

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