“The launch of NPS-Vatsalya, allowing parents and guardians to contribute towards minors’ future, is a transformative step. This plan seamlessly converts into a regular NPS account once the minor becomes an adult. Thank you, PM Modi, for your visionary approach in securing the financial future of our young citizens, paving the way for a Viksit Bharat,” said Arunachal Pradesh Chief Minister Pema Khandu
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday announced that a New Pension Scheme (NPS) ‘Vatsalya’, a plan for contribution by parents and guardians for minors, will soon be launched by the government.
The plan can be seamlessly converted into a normal NPS account on minors becoming an adult, the Finance Minister stated during her budget speech.
“The launch of NPS-Vatsalya, allowing parents and guardians to contribute towards minors’ future, is a transformative step. This plan seamlessly converts into a regular NPS account once the minor becomes an adult. Thank you, PM Modi, for your visionary approach in securing the financial future of our young citizens, paving the way for a Viksit Bharat,” said Arunachal Pradesh Chief Minister Pema Khandu.
Ranbheer Singh Dhariwal, Chief Executive Officer, Max Life Pension Fund Management said, “The Union Budget’s introduction of the National Pension Scheme (NPS) Vatsalya is a commendable step forward in promoting retirement savings and fostering long-term financial security. By allowing parents and guardians to initiate their minor child’s NPS account, the initiative sets the foundation for responsible financial management from an early age. As these accounts transition into regular NPS plans upon adulthood, they provide a smooth continuation of savings habits into adulthood.”
Additionally, the proposed increase in employer contributions to NPS from 10 to 14 percent reinforces the role of employers in fostering long-term financial and social security for their workforce, he added.
The Finance Minister also announced that the committee to review the NPS has made considerable progress in its work.
She expressed satisfaction that the staff side of the National Council of the Joint Consultative Machinery for Central government employees have taken a constructive approach.
“A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens,” said FM Sitharaman.