In pursuance of the announcement in the Union Budget 2024-25, Hon’ble Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman launched the NPS Vatsalya scheme, ‘a pension scheme for minors’ on 18.09.2024 in New Delhi. Hon’ble Minister of State for Finance Shri Pankaj Chaudhary. also participated in the launch event and addressed the gathering. Secretary, D/o Financial services and Chairman PFRDA were also present along with other esteemed guests. NPS Vatsalya launch event was organized simultaneously at 75 locations throughout the country, and the function was organized in 3 locations in Tamil Nadu – Chennai, Tiruchirappalli & Tirunelveli. The Chennai event was attended by Shri Dhanaraj T, Executive Director, Indian Overseas Bank & Chairman, SLBC, Tamil Nadu; Shri S Ilangovan, General Manager, RBI, Chennai, Shri M Annadurai, ADG – PIB, Southern Region; Shri Mohan M, General Manager Indian Overseas Bank & Convenor, SLBC, Tamil Nadu; Shri Somasundaram, DGM, NABARD, School Children, parents, teachers and senior level bankers. We had distributed 22 PRAN cards in Chennai. On all the locations event was enthusiastically attended by school going children.
During the event Union Finance Minister launched an online platform for subscribing to NPS Vatsalya, released the scheme brochure and distributed permanent retirement account number (PRAN) cards to minor subscribers gathered from across the country. It is envisaged that scheme will inculcate the habit of savings among young subscribers at an early age and through power of compounding large sums can be accumulated by the subscriber of NPS Vatsalya.
NPS Vatsalya scheme is expected to be a building block of social security in Viksit Bharat@2047. Contributory nature of scheme will ensure inter-generational equity by not creating a charge on future revenues.
Eligibility for the scheme is as follows:
- All minor citizens (age below 18 years).
- Account can be opened in the name of minor and operated by parent or guardian. Minor will be the beneficiary.
- Scheme can be opened through various Points of presence regulated by PFRDA such as major banks, India Post, Pension Funds and Online platform (e-NPS).
- Subscriber to make a minimum contribution of Rs 1000/- per annum. There is no limit on the maximum contribution.
- PFRDA will provide multiple investment choices to subscribers. Subscribers can take exposure in government securities, corporate debt, and equity in different proportions based on risk appetite and desired returns.
- On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
The Union Finance Minister Smt. Nirmala Sitharaman while inaugurating NPS Vatsalya scheme emphasized that it has been the Government’s endeavour to promote long-term financial planning and security for all the citizens. It was stated that it will be significant step in making India a pensioned society.
Shri. Pankaj Chaudhary, Minister of State for Finance said that ‘NPS Vatsalya’ scheme is a significant step of the Government towards inclusive economic development and all the institutions involved in scheme implementation were urged to ensure maximum coverage and saturation of the scheme.