NPS Vatsalya Scheme

Current Context : The finance minister recently introduced a new pension scheme under the National Pension Scheme (NPS), called NPS Vatsalya.

• This new scheme is designed to help parents and guardians plan for their children’s future financial needs.

ABOUT NPS VATSALYA SCHEME:

• It is a scheme under the National Pension Scheme (NPS).
• NPS Vatsalya is a scheme for minors in which, a regular contribution is made by parents or guardians.
• The scheme will get converted to regular NPS once the child attains the age of 18.
• The accumulated amount will be transferred to the standard NPS account when the child turns 18.
• The scheme operates similarly to the existing NPS.

NATIONAL PENSION SCHEME

• It is a voluntary pension system for all citizens, including both residents and NRIs between the ages of 18 and 70 years (NPS).
• It is a market-linked contribution scheme that allows Indian citizen to systematically save for their retirement and also derive tax benefits out of it.