Union Finance Minister Nirmala Sitharaman to launch Centre’s NPS Vatsalya Yojana in Delhi today

Today, September 18, is set aside for the introduction of the Center’s NPS (National Pension System) Vatsalya Scheme by Union Finance Minister Nirmala Sitharaman in a Delhi ceremony. “In pursuance of the announcement in the Union Budget 2024–25, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will launch the NPS Vatsalya scheme on September 18, in New Delhi,” reads a release from the finance ministry. Schoolchildren will attend the launch as well.

In the Union Budget 2024, the Central Government discussed the NPS Vatsalya Scheme. The announcement from the finance ministry also said that viewers elsewhere, such as schoolchildren, would virtually participate in the Delhi broadcast.

The Finance Minister will present the scheme booklet and an online gateway for NPS Vatsalya subscriptions at the launch ceremony. Additionally, PRAN cards will be given out by the minister to newly registered minors. There will be around 75 NPS Vatsalya sites throughout India. Additional areas will participate in the launch by video conference, and new minor subscribers in those locations will get PRAN memberships.

The NPS Vatsalya Scheme is regarded as a significant advancement for the pension system. The purpose of this new program, according to reports, is to protect children’s financial futures. This plan will be overseen by the Pension Fund Regulatory and Development Authority. In India, organized pension funds are developed, promoted, and governed by the Pension Fund Regulatory and Development Authority. By contributing to a pension account, parents and guardians will be able to safeguard their child’s future via this program.

Regarding the NPS Vatsalya Program

A parent or legal guardian may register an account in their child’s name under the NPS-Vatsalya Scheme for a minimum of Rs 1,000. After that, the parent or legal guardian will need to make an annual minimum deposit of Rs 1,000 into the kid’s NPS-Vatsalya account till the child is 18 years old.

The maximum amount that may be placed into this account is unlimited, according the State Bank of India Pension Fund website. When the kid reaches the age of 18, the NPS Vatsalya program may also be changed into a non-NPS program. After that, they may handle the account on their own. A partial withdrawal option is also offered, according to the SBI (State Bank of India) Pension Fund website. This is available for three uses.