Union Minister for Finance & Corporate Affairs Nirmala Sitharaman proposed a new pension scheme named ‘Vatsalya’ that will enable parents and guardians to initiate savings for minors and ensure their financial security. This was introduced in the Union Budget 2024-25 tabled in Parliament on 23rd July 2024.

The funds will accumulate till the child turns 18, after which the it will be it will be converted into a regular NPS account.

“NPS-Vastalya, a plan for contribution by parents and guardians for minors will be started. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account”, the Finance Minister stated.

Sitharaman 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”, she further informed.