The NPS Vatsalya Yojana proposed in Budget 2024 is a new pension scheme. NPS Vatsalya Yojana is a project sponsored by the Government of India. This scheme helps parents and guardians to start a National Pension Scheme for their children. This scheme is named NPS Vatsalya. The aim of which is to secure the financial future of children. Under this scheme, parents and guardians can open an NPS account for their children. You can contribute a fixed amount every month or year till the child turns 18. When the child reaches the age of adulthood, the NPS Vatsalya Yojana can be converted into regular NPS. So that the child can manage independently. This scheme is available to parents and guardians.
Purpose of Vatsalya Yojana
The main objective of the NPS Vatsalya Yojana announced in the Modi government’s Budget 3.O is to promote and encourage initial savings for children. Under this scheme, parents and guardians can open an NPS account for their children. When the child turns 18 years old, this account will easily be converted into a non-NPS scheme i.e. a normal account. This will secure the future of the children and reduce the worries of the government employee. This scheme is a special form of the existing NPS, which has been designed keeping in mind the interests of children.
Who announced the NPS Vatsalya Yojana
NPS Vatsalya Yojana was announced by Finance Minister Nirmala Sitharaman during her speech. National Pension System is an ambitious scheme run by the Central Government, which ensures a stable income after retirement. Under this scheme, you can also invest for a long term in the name of minor children. Keeping the focus on the safety of children, the Central Government has named this additional scheme as NPS Vatsalya.
Who is eligible for Vatsalya Yojana
- The person applying for NPS Vatsalya Yojana must be an Indian.
- The age of applicant should be between 18 to 70 years.
- Eligible applicants must meet the corresponding KYC norms of SRF.
- The applicant’s company should have adopted NPS.
- Government companies, public sector undertakings and registered partnership firms can also apply for this scheme.
Benefits of Vatsalya Yojana
- By investing his capital a citizen can earn more than the bank returns.
- It can provide financial security to all Indians.
- Citizens can collect their amount en masse after the stipulated time.
- Citizens can contribute to NPS without paying any tax to the government.
- NPS allows changing jobs without any impact on the pension account.
Overview of NPS Vatsalya Plan
| Name of the scheme | NPS Vatsalya Plan |
| Declaration date | 23 July 2024 |
| Launchers | Finance Minister Nirmala Sitharaman |
| Main Objective | Securing the future of children and providing financial security for them |
| Beneficiary | Minor children whose parents or guardians invest in the scheme |
Necessary documents for this scheme
- Aadhaar card of the applicant
- PAN card
- Income Certificate
- Address proof
- mobile number
- Bank passbook.
- Age Certificate
- Passport size photo.
How to apply for NPS Vatsalya Yojana online
- Visit the official website of this scheme http://enps.nsdl.com/ .
- There you will see options like ‘Open Account’ or ‘New Account’.
- After clicking on this option, you will see a new form. You will have to fill that form. You will have to fill all the information asked in it.
- You also have to upload some required documents like Aadhar card, PAN card, passport size photo etc.
- After filling all the information correctly, you have to click on the submit button.