Union Finance Minister Nirmala Sitharaman launched the NPS Vatsalya Scheme in Delhi on 18 September. The Finance Minister had announced this scheme while presenting Budget 2024. This scheme has been designed under the existing National Pension System i.e. NPS. NPS Vatsalya has been designed to help ensure the financial security of children when they grow up. NPS Vatsalya has been designed to help ensure the financial security of children when they grow up. Parents can invest on behalf of children in NPS Vatsalya scheme. On attaining adulthood, the account will be converted into regular NPS. NPS 'Vatsalya' can also be converted into a non-NPS scheme when the child turns 18. Regular NPS scheme helps in creating a retirement fund. For higher returns, NPS contributions are invested in market-linked instruments like stocks and bonds. Parents can make a minimum investment of Rs 1,000 annually in an NPS account in the name of the child. At the same time, after the age of 18, the child can manage this account himself.
