NPS Vatsalya Scheme: The central government has taken a major initiative towards making the next generation of the country financially strong and independent. Under this, pension accounts can be opened for children. Finance Minister Nirmala Sitharaman has launched the NPS Vatsalya Scheme today (18 September 2024). This scheme was announced in the budget 2024-25.
This is what the Finance Minister said
On this occasion, Finance Minister Nirmala Sitharaman said that it is very important to launch the scheme in such a short time after announcing it in the July budget. This clearly reflects the working style of the government. This is an important step for the PM’s vision of a developed India. Inter-generation faith is needed with growing India. We need financial independence to secure our future and live a life with dignity.
The current CAGR of growth in NPS is 34%. NPS Vatsalya will create an understanding of saving among parents and children. It will make them aware of its benefits. The average return of the NPS scheme is 9.5%. This scheme can be availed from any bank, post office or portal.
On the other hand, PFRDA Chairman Deepak Mohanty said that the pension scheme for children has been launched. This is a feeling of financial independence. Parents will be able to take it for their children.
The child’s account will be converted into NPS when he becomes an adult and will continue like this along with the job.
Investing Rs 1,000 annually
NPS Vatsalya Scheme will provide flexible contributions and investment options, through which parents can invest Rs 1,000 annually in the name of the child. It will be accessible to families from all economic backgrounds. Its returns will be based on the market.
This new initiative has been launched to secure the financial future of children, which is an important step in India’s pension system. This scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA). The launch of NPS Vatsalya reflects the Government of India’s commitment to promote long term financial schemes and security for all.