New Pension Scheme ‘Vatsalya’ Proposed for Minors in Union Budget 2024-25

New Delhi:  Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman today proposed a new pension scheme named ‘Vatsalya’ during the presentation of the Union Budget 2024-25 in Parliament.

The Vatsalya scheme is a contributory pension plan designed specifically for minors, with contributions to be made by parents and guardians. Upon reaching the age of majority, the plan will seamlessly convert into a normal National Pension System (NPS) account, ensuring continued financial security and planning for the beneficiaries.

Smt. Sitharaman highlighted the innovative nature of the scheme, emphasizing its potential to instill a culture of savings and financial planning from a young age. “The Vatsalya scheme represents our commitment to nurturing the future generations of India, providing them with a robust financial foundation,” she stated.

In addition to the Vatsalya scheme, the Union Minister also provided an update on the progress of the Committee reviewing the NPS. She expressed satisfaction with the work done so far and appreciated the constructive approach taken by the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees.

“The Committee to review the NPS has made considerable progress. A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens,” Smt. Sitharaman informed the Parliament.

The Vatsalya scheme and the ongoing review of the NPS underscore the government’s focus on comprehensive financial reforms and its commitment to the welfare of all sections of society.