Modi government to launch NPS-Vatsalya scheme on September 18
Finance Minister Nirmala Sitharaman will inaugurate the NPS-Vatsalya scheme in Delhi on September 18. It is a unique initiative that allows parents and guardians to open accounts for their minor children, contributing toward their retirement savings. Sitharaman described it as "a plan for contributions by parents and guardians for minors," during her budget speech in July. The scheme offers flexibility with the option to convert the account into a regular National Pension Scheme (NPS) plan, once the child turns 18.
A retirement savings plan for minors
The inauguration event will be attended by several high-ranking officials including Deepak Mohanty, the Chairman of the Pension Fund Regulatory and Development Authority (PFRDA) and Minister of State (MOS) for Finance Pankaj Choudhary. Senior finance ministry officials, and Nagaraju Maddirala, the Secretary of the Department of Financial Services will also be present.
Scheme's eligibility and contribution details
The NPS-Vatsalya scheme is open to all parents and guardians, including Indian citizens, Non-Resident Indians (NRIs), and Overseas Citizen of India (OCIs). They can start saving for their children's retirement as early as infancy, with a minimum monthly contribution of ₹500 or an annual contribution of ₹6,000. Upon reaching adulthood, the minor's account will automatically transition into a regular NPS account.
