Modi government says 1.3L minors registered under NPS-Vatsalya Scheme
What's the story
The Indian government has announced that over 1.3 lakh minor subscribers have registered under the National Pension System (NPS) Vatsalya Scheme till August 3, 2025. The scheme, which was launched in September 2024, aims to promote inter-generational equity and financial security by encouraging early savings for children and retirement planning across generations.
Scheme details
Scheme promotes inter-generational equity
Minister of State for Finance Pankaj Chaudhary, in a written reply in the Lok Sabha, said that the NPS-Vatsalya Scheme promotes financial security by encouraging early savings. Under the old tax regime, income tax deduction under Section 80CCD (1B) up to ₹50,000 has been extended toward NPS-Vatsalya contributions made by parents or guardians from April 1, 2025.
Accessibility
How to open NPS-Vatsalya account
The NPS-Vatsalya Scheme is implemented through Points of Presence (PoPs), including bank branches and non-bank entities, regulated by the Pension Fund Regulatory and Development Authority (PFRDA). These PoPs are spread across India to ensure extensive coverage and accessibility. An online platform provided by the NPS Trust also allows opening of an NPS-Vatsalya account, further enhancing reach and convenience.
Objectives
What is NPS-Vatsalya scheme?
Launched on September 18, 2024, the NPS-Vatsalya Scheme is a contributory pension scheme for minors. It aims to create a fully pensioned society. The scheme permits parents/guardians to contribute a minimum of ₹1,000 per annum with no ceiling on maximum contribution for their minor subscriber. On reaching adulthood, the subscriber's account can be converted into an NPS account.