 "Nirmala Sitharaman launched the NPS Vatsalya scheme, empowering parents to secure their children’s future through pension savings.")
Union Finance Minister Nirmala Sitharaman recently launched the NPS Vatsalya scheme, aimed at helping parents save for their children’s futures through a pension account. Parents can subscribe online or visit their bank or post office, starting with a minimum investment of Rs 1,000, followed by an annual contribution of Rs 1,000. This scheme allows children under 18 to benefit, with the account automatically converting to a regular NPS account at 18. With impressive returns of 14% on equity and 9.1% on corporate debt, the NPS has gained popularity, boasting 1.86 crore subscribers and Rs 13 lakh crore in assets. Financial services officials are open to subscriber feedback to enhance the scheme further.
Union Finance Minister Nirmala Sitharaman recently announced the launch of the NPS Vatsalya scheme, aimed at helping parents save for their children’s future through a pension account. This innovative initiative allows parents to subscribe to the NPS Vatsalya scheme either online or at designated bank and post office locations. The minimum initial contribution required to open an account is Rs 1,000, followed by an annual contribution of the same amount.
During the launch, Sitharaman highlighted the competitive returns generated by the National Pension System (NPS), emphasizing the importance of saving for future income. The NPS Vatsalya scheme is designed specifically for children under 18 years, and accounts will automatically transition to standard NPS accounts once the child turns 18. Pension payouts from these accounts will begin only after they reach the age of 60.
The NPS has gained significant traction over the past decade, boasting approximately 1.86 crore subscribers and assets under management totaling Rs 13 lakh crore. In terms of returns, the NPS has delivered 14% for equity investments, 9.1% for corporate debt, and 8.8% for government securities, according to Sitharaman.
As part of the launch, several banks, including ICICI Bank and Axis Bank, are now collaborating with the Pension Fund Regulatory and Development Authority (PFRDA) to roll out the NPS Vatsalya scheme. ICICI Bank has already taken steps to initiate the program in Mumbai by registering accounts for children.
Financial Services Secretary Nagaraju Maddirala assured that the government is eager to hear feedback from subscribers to enhance the scheme further. He mentioned ongoing efforts to address public suggestions and concerns regarding the NPS Vatsalya scheme.
This new scheme represents a proactive step towards securing children’s financial futures, empowering parents to invest wisely and efficiently for upcoming generations.
Tags: Nirmala Sitharaman, NPS Vatsalya scheme, children’s pension fund, financial security, government initiative, National Pension System, investment for kids, India pension scheme.
What is NPS Vatsalya?
NPS Vatsalya is a new pension scheme launched by the Finance Minister, Nirmala Sitharaman. It allows parents to open pension accounts specifically for their children.
Who can open an NPS Vatsalya account?
Parents can open an NPS Vatsalya account for their children under this scheme.
What are the benefits of the NPS Vatsalya scheme?
The scheme helps parents save for their children’s future by providing a pension that can support them financially when they grow up.
Is there an age limit for children to be included in NPS Vatsalya?
Yes, typically the scheme is designed for children who are minors, but parents can check specific age criteria when applying.
How can parents contribute to their child’s NPS Vatsalya account?
Parents can make regular contributions to their child’s NPS Vatsalya account, similar to other pension schemes, helping to build a financial nest egg over time.
