NPS Vatsalya  The Hindu

Context

As part of the July Union Budget 2024 announcement, the Finance Minister recently launched NPS Vatsalya, a unique pension scheme for minors. The scheme was rolled out across 75 locations nationwide, with over 250 PRANs (Permanent Retirement Account Numbers) being allocated to young subscribers.

NPS Vatsalya Scheme

• Objective:
  The scheme is designed to provide a long-term financial safety net for minors by introducing them to retirement planning from an early age.
• Key Features:
  1. Eligibility:
     • Minors can enroll in the NPS Vatsalya scheme, allowing them to accumulate a pension corpus for future security.
  2. PRAN Allocation:
     • Each subscriber under the scheme is assigned a Permanent Retirement Account Number (PRAN), which enables the management of their pension contributions.
  3. Nationwide Rollout:
     • The scheme was launched across 75 locations in India as part of its inaugural phase.
  4. Long-term Benefits:
     • The scheme offers a structured platform for pension accumulation over several decades, providing minors with a strong financial base as they grow into adulthood.