New Delhi: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, inaugurated the National Pension System Vatsalya (NPS Vatsalya) scheme today, marking a significant step in expanding pension coverage in India. The launch event, held at Bharat Mandapam in New Delhi, was attended by Union Minister of State for Finance Pankaj Chaudhary, Secretary of the Department of Financial Services (DFS) Nagaraju Maddirala, and Dr. Deepak Mohanty, Chairman of the Pension Fund Regulatory Authority of India (PFRDA), among other senior officials and esteemed guests.
The NPS Vatsalya scheme, announced in the Union Budget 2024-25, aims to provide a pension option for minors, promoting early financial planning and security. The launch was simultaneously held at 75 locations across the country, where over 250 Permanent Retirement Account Numbers (PRAN) were distributed to minor subscribers. The event saw enthusiastic participation from schoolchildren and their families.
Sitharaman, in her keynote address, highlighted the scheme’s alignment with Prime Minister Narendra Modi’s vision of creating a “Viksit Bharat@2047.” She emphasized that NPS Vatsalya represents a crucial step in the government’s efforts to promote long-term financial planning and intergenerational equity. “NPS Vatsalya is designed to instill the habit of savings among young subscribers, allowing them to accumulate wealth through the power of compounding and ensuring a dignified life in old age,” she stated.
The Finance Minister also released a brochure detailing the features of the NPS Vatsalya scheme and launched an online platform for easy subscription. She praised the success of the Atal Pension Yojana, which has seen 6.90 crore subscribers and a corpus of ₹35,149 crore since its inception in 2015. Additionally, she highlighted the competitive returns offered by the NPS scheme, noting an average Compound Annual Growth Rate (CAGR) of 9.5% for the Government Sector.
Union Minister of State for Finance Shri Pankaj Chaudhary commended the scheme as a significant advancement towards inclusive economic development. He urged all involved institutions to ensure broad coverage and effective implementation.
Nagaraju Maddirala, Secretary of DFS, emphasized the importance of collaboration among stakeholders, including banks, to ensure the scheme’s success. He underscored the need for financial education and awareness campaigns to promote retirement planning and pension participation, especially among workers in the informal sector.
Dr. Deepak Mohanty, Chairman of PFRDA, praised the government’s forward-thinking approach with NPS Vatsalya, noting its potential to harness the power of compound interest for substantial wealth accumulation. He highlighted the scheme’s role in fostering a culture of early saving and investment.
Eligibility and Features of NPS Vatsalya:
- Available to all minor citizens (below 18 years of age).
- Accounts can be opened in the minor’s name and operated by a parent or guardian.
- Minimum annual contribution of ₹1,000; no maximum limit on contributions.
- Multiple investment options provided by PFRDA, including government securities, corporate debt, and equity.
- Seamless transition to a regular NPS account upon reaching the age of majority.
The NPS Vatsalya scheme is set to play a pivotal role in enhancing financial security for the younger generation, reflecting the government’s commitment to long-term economic stability and inclusive growth.
