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NPS Vatsalya Scheme

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Why in the News?

The Finance Ministry has launched the “NPS Vatsalya scheme” as per the Union Budget 2024-25 announcement.

About NPS Vatsalya Scheme:

Details
Objective To secure children’s financial future by allowing parents to invest in a pension account early on.
Nodal Agency Managed by Pension Fund Regulatory and Development Authority (PFRDA)
Eligibility
  • Indian citizens, NRIs (Non-Resident Indians), and OCIs (Overseas Citizens of India) can open accounts for minors.
  • Parents or guardians.
Contributions ₹500 per month or ₹6,000 annually
Benefits offered
  • Contributions benefit from compounding, ensuring long-term wealth growth for the child.
  • At 18, Vatsalya account is converted into a regular NPS account for seamless retirement planning.
  • Promotes long-term financial security and retirement planning for future generations.

 

PYQ:

[2017] Who among the following can join the National Pension System (NPS)?

(a) Resident Indian citizens only

(b) Persons of age from 21 to 55 only

(c) All State Government employees joining the services after the date of notification by the respective State Governments

(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004

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