Finance Minister to Launch NPS Vatsalya Scheme Today: What You Need to Know
Today, Finance Minister Nirmala Sitharaman is set to launch the much-awaited NPS Vatsalya Scheme, according to an official release from the Finance Ministry. The scheme was first announced in the Union Budget 2024-25, and its launch is happening in New Delhi with virtual participation from audiences, including school children, across the country.
Details of the Launch Event
The launch event will feature Sitharaman unveiling the scheme brochure and introducing an online platform for subscribing to the NPS Vatsalya. Additionally, she will distribute Permanent Retirement Account Number (PRAN) cards to newly enrolled minor subscribers. Special events are planned at around 75 locations across India, with live broadcasts connecting these regions to the central launch via video conferencing.
About the NPS Vatsalya Scheme
NPS Vatsalya was introduced as a part of the government’s broader effort to secure the financial future of children. It allows parents and guardians to start pension accounts for minors. The scheme’s focus is on early financial planning, enabling long-term wealth growth through the power of compounding.
Key Features of the Scheme
Parental Contributions: Parents and guardians can contribute as little as Rs. 1,000 annually to the child’s pension account, making it accessible to families from all economic backgrounds.
PRAN Cards for Minors: Each minor enrolled in the scheme will receive a PRAN (Permanent Retirement Account Number) card, marking their initiation into the pension system.
Conversion to Normal NPS: Once the child reaches adulthood, their NPS Vatsalya account can be seamlessly converted into a regular NPS account, ensuring continued financial security.
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The NPS Vatsalya Scheme is a significant step in India’s pension system, aiming to encourage financial savings from a young age. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), this scheme reflects the government’s commitment to securing the financial futures of the nation’s children.
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