Gurugram: Children head to school on a bicycle during a foggy winter morning, in Gurugram, Wednesday, Dec. 27, 2023.
PTI
New Delhi: The central government will launch a pension scheme for minors called 'NPS-Vatsalya' on September 18 that will allow parents to save for their children’s future, the Union Finance Ministry said on Monday.
“NPS Vatsalya offers flexible contributions and investment options, allowing parents to make an investment of Rs. 1,000 annually in the name of the child, thus making it accessible to families from all economic backgrounds,” the ministry said.
Finance Minister Nirmala Sitharaman will launch the new scheme in New Delhi. She is also scheduled to launch an online platform for subscribing to NPS Vatsalya scheme. Sitharaman had announced the scheme in the Union Budget presented in July this year.
The scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA), the regulatory body for managing and overseeing pension funds in India.
“The launch of NPS Vatsalya highlights the Government of India's commitment to promote long-term financial planning and security for all. It’s a big step toward making India’s future generations more financially secure and independent,” the ministry said.
As part of the launch in New Delhi, NPS Vatsalya events will be organised simultaneously at nearly 75 locations throughout the country. Other locations will join the launch through video conference and will also distribute Permanent Retirement Account Number (PRAN) cards to new minor subscribers.