A new pension scheme named ‘Vatsalya’ has been proposed for minors by Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in the Union Budget 2024-25.
A contributory pension scheme, this will have contribution by parents and guardians. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
NPS Vatsalya is a scheme for minors in which, a regular contribution is made by parents or guardians. The scheme will get converted to regular NPS once the child attains the age of 18.
The National Pension Scheme (NPS) is a voluntary pension system for all citizens, including both residents and NRIs between the ages of 18 and 70 years.
It is a market-linked contribution scheme that allows Indian citizen to systematically save for their retirement and also derive tax benefits out of it.
