Rapid Fire
New Pension Scheme ‘Vatsalya’
- 27 Jul 2024
- 1 min read
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
