The Business Bytes
NEW DELHI, SEPTEMBER 16, 2024 (TBB BUREAU): Finance Minister Nirmala Sitharaman is set to unveil the New Pension Scheme (NPS) ‘Vatsalya’ in New Delhi on September 18. The launch event will include participation from schoolchildren and will be mirrored by similar events at approximately 75 locations across India.
Introduced in the Union Budget 2024, the ‘Vatsalya’ scheme enables parents to contribute to a pension fund on behalf of their children, aiming to secure their future and build a retirement corpus. During the launch, an online platform for subscribing to NPS ‘Vatsalya’ will be introduced, and the scheme’s brochure will be released. Additionally, PRAN (Permanent Retirement Account Number) cards will be distributed to new minor subscribers.
Other locations will join the launch via video conference and will also issue PRAN membership cards to new minor subscribers.
“NPS ‘Vatsalya’ allows parents to invest in a pension account for their children, harnessing the power of compounding to ensure long-term wealth,” the Ministry of Finance stated. The scheme offers flexible contribution and investment options, starting with an annual investment of Rs 1,000, making it accessible to families from various economic backgrounds.
This initiative marks a significant advancement in India’s pension system, emphasizing early financial planning for children. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), ‘Vatsalya’ will permit children to withdraw a portion of the accumulated corpus as a lump sum and receive the remainder as regular pension payments.
“The launch of NPS ‘Vatsalya’ underscores the Indian government’s dedication to fostering long-term financial planning and security for all citizens,” the ministry added.
