Finance Minister Nirmala Sitharaman to Launch NPS Vatsalya Scheme for Children’s Future
New Delhi [India], September 16: Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will introduce the NPS Vatsalya scheme, as announced in the Union Budget 2024-25, the Ministry of Finance confirmed on Monday. The scheme’s launch is scheduled for 18 September 2024, with schoolchildren participating in the event.
The Union Finance Minister will also unveil an online platform for subscribing to NPS Vatsalya, release a scheme brochure, and distribute Permanent Retirement Account Number (PRAN) cards to new minor subscribers. In conjunction with the launch in New Delhi, NPS Vatsalya events will be organised simultaneously at nearly 75 locations across the country. These locations will connect via video conference and will also distribute PRAN cards to new minor subscribers at their respective venues.
NPS Vatsalya will enable parents to save for their children’s future by investing in a pension account, ensuring long-term wealth accumulation through the power of compounding. NPS Vatsalya offers flexible contribution and investment options, allowing parents to make investments starting from Rs. 1,000 annually in the child’s name, making it accessible to families from all economic backgrounds. This initiative is designed to encourage early financial planning for children, marking a significant step in India’s pension system.
The scheme will be managed under the Pension Fund Regulatory and Development Authority (PFRDA). Emphasising the government’s commitment, the finance ministry stated that the launch of NPS Vatsalya underscores the Government of India’s dedication to promoting long-term financial planning and security for all. It represents a significant step towards ensuring the financial security and independence of future generations.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and finances. In India, this person is Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is an important leader in India who takes care of the country’s money matters. She is the Finance Minister of India.
NPS Vatsalya scheme -: The NPS Vatsalya scheme is a new plan to help parents save money for their children’s future. NPS stands for National Pension System.
Union Budget -: The Union Budget is a plan made by the government every year about how it will earn and spend money. It is like a big financial plan for the country.
pension account -: A pension account is a special type of savings account where people can save money for their future, especially for when they get old and stop working.
PRAN cards -: PRAN stands for Permanent Retirement Account Number. It is a special card given to people who join the National Pension System (NPS) to keep track of their savings.
Pension Fund Regulatory and Development Authority (PFRDA) -: The Pension Fund Regulatory and Development Authority (PFRDA) is a group that makes sure pension plans like the NPS are run properly and safely in India.
