NPS Vatsalya Yojana to be launched; Finance Minister to also start an online platform for membership

New Delhi| Finance Minister Nirmala Sitharaman will launch NPS Vatsalya Yojana on Wednesday. The new pension scheme (NPS)-Vatsalya was announced in the 2024-25 general budget. The Finance Minister will also launch an online platform for membership of NPS Vatsalya, the Finance Ministry said on Monday. She will also distribute ‘Permanent Retirement Account Number’ (PRAN) cards to minor customers besides issuing a brochure on the scheme. On the occasion of the launch of this scheme, programs will be organized simultaneously at about 75 places across the country. Other locations will connect via video conference.

Under NPS-Vatsalya Scheme, parents will be able to invest in the name of their minor child. After this, when the child becomes an adult, the parents can convert this scheme into NPS. NPS-Vatsalya scheme will prove to be very helpful in preparing the bright future of children. Under this scheme, parents can make a minimum investment of Rs 1,000 annually in the NPS account in the name of the child. In this way the scheme becomes accessible to families with all economic backgrounds.

The UPI Pension Fund last year delivered a 14.28 per cent year-on-year return in NPS. In view of this, if the parents of a three-year-old child invest Rs 10,000 every month in the pension fund, then they will invest a total of Rs 18 lakh in 15 years till the child turns 18 years old. By this period, investment of Rs 18 lakh will increase to Rs 63 lakh at 14.28 per cent annual return.