New Pension Scheme ‘Vatsalya’ | 27 Jul 2024

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.