Union Finance Minister to Launch NPS Vatsalya Scheme on September 18, 2024 - PIB

Context
The NPS Vatsalya Scheme, a new initiative by the Government of India, will be launched by Union Finance Minister Smt. Nirmala Sitharaman on September 18, 2024, in New Delhi. This scheme aims to promote early financial planning for children by allowing parents to invest in a pension account for their children’s future.

NPS Vatsalya Scheme

1. Announcement:
   • The NPS Vatsalya Scheme was first announced in the Union Budget 2024-25 as part of the Government of India’s ongoing efforts to promote financial security for future generations.
2. About:
   • A pension scheme designed for minors, where parents can open an account in their child's name and contribute towards securing their financial future.
   • It is a scheme under the National Pension Scheme (NPS).
3. Regulatory Body:
   • Pension Fund Regulatory and Development Authority (PFRDA)

1. Mechanism:
   • Funds will accumulate until the child reaches the age of 18.
   • Following this, the accumulated funds will be transferred to the standard NPS account.