NPS Vatsalya: New Pension Scheme Launched for Minors Promises Financial Security from a Young Age

Union Finance Minister Nirmala Sitharaman officially launched a new pension scheme for minors, "NPS Vatsalya," on September 18, 2024, from New Delhi. The scheme, which had been announced during the previous budget, aims to provide children between the ages of 0 to 18 with a pension account that their parents can manage until they turn 18. The virtual launch event saw participation from four districts in Maharashtra- Mumbai, Pune, Nanded, and Nagpur via video conferencing.

In Mumbai, the State Level Bankers Committee held a local launch event in the Jogeshwari area, where Permanent Retirement Account Number (PRAN) cards, essential for the scheme, were distributed to the attending children. The NPS Vatsalya scheme allows parents to deposit a minimum of Rs 1,000 per month, with no upper limit. Once the child turns 18, they have the option to either continue the account as a regular NPS or transition into a non-NPS scheme.

Nagpur’s launch event was organized by the Bank of India, with local dignitaries such as Bank Manager Mohit Gedam and NABARD Assistant Manager Sachin Sonone in attendance. The event, held at the School of Scholars Beltarodi, gave parents the opportunity to ask questions about the new pension scheme. One local parent, Jyoti Pote, shared her optimism about the program, expressing her intention to open an NPS Vatsalya account for her child to instill the habit of saving and to ensure financial security for the future. 

In Pune, the launch ceremony took place at Siddhi Banquet Hall in the Mhatre Pul area, in association with the Bank of Maharashtra and the State Level Bankers Committee. The event featured a unique way of introducing the scheme through a puppet show, and attendees were given detailed information about NPS Vatsalya. Key officials present included Pune Zilla Parishad Chief Executive Officer Santosh Patil, Bank of Maharashtra General Manager Chitra Datar, and other representatives from leading banks. Attendees also heard directly from Finance Minister Sitharaman, learning more about the long-term benefits of the scheme.

Meanwhile, in Nanded, the event was held at Kendriya Vidyalaya Airport Road, with 50 students and 50 parents participating. Anil Gachke, Manager of the leading bank in Nanded district, facilitated the event, ensuring that the community was well-informed about the new initiative.

NPS Vatsalya aims to build financial awareness and security for children at a young age, with the long-term goal of promoting savings and financial independence for future generations.