Nirmala Sitharaman Launches NPS Vatsalya Scheme for Children’s Future

Finance Minister Nirmala Sitharaman launched the NPS Vatsalya scheme, aimed at helping parents save for their children’s future through a pension account. The scheme requires a minimum contribution of Rs 1,000 and allows withdrawals upon the child turning 60. ICICI Bank and Axis Bank are among the lenders supporting this initiative.

Finance Minister Nirmala Sitharaman has inaugurated the NPS Vatsalya scheme, a new initiative aimed at enabling parents to secure their children's financial future by investing in a pension account.

Under the scheme, parents can subscribe either online or by visiting a bank or post office, with an initial contribution of Rs 1,000, and an annual contribution of the same amount required thereafter.

The NPS Vatsalya scheme, which converts to a regular NPS account once the child turns 18, was first announced in the FY25 Budget. It has already seen support from major lenders like ICICI Bank and Axis Bank.

(With inputs from agencies.)