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New Pension Scheme ‘Vatsalya’

  • 27 Jul 2024
  • 1 min read

Source: HT

The Union Budget 2024-25, introduced the National Pension Scheme (NPS) Vatsalya, a groundbreaking pension scheme aimed at minors. 

  • This scheme allows parents or guardians to initiate a NPS account for their children, thereby laying the groundwork for responsible financial management from an early age. 
    • It is a contributory pension scheme, and will have contributions by parents and guardians. 
  • Upon reaching adulthood (18 years), the NPS Vatsalya accounts seamlessly convert into regular NPS accounts, promoting consistent saving habits.
  • The NPS is a voluntary pension system for all citizens, including both residents and Non-Resident Indians (NRIs) between the ages of 18 and 70 years.
    • It is a market-linked contribution scheme that allows Indian citizens to systematically save for their retirement and also derive tax benefits out of it.

Read more: National Pension System, Union Budget 2024-25

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