తెలుగు వెర్షన్ కోసం ఇక్కడ క్లిక్ చేయండి

Why in the News?

The Ministry of Finance has introduced the “NPS Vatsalya Scheme” as part of the Union Budget 2024-25 initiatives.

About the NPS Vatsalya Scheme:

Objective:
To help parents secure their children’s financial future by starting early investments in a pension account.

Managing Authority:
Administered by the Pension Fund Regulatory and Development Authority (PFRDA).

Eligibility Criteria:

Available to Indian citizens, NRIs (Non-Resident Indians), and OCIs (Overseas Citizens of India) for minors.

Parents or legal guardians can open the account on behalf of the child.

Contribution Requirements:

Minimum contribution of ₹500 per month or ₹6,000 annually.

Key Benefits:

Investments benefit from compounding, promoting substantial long-term wealth accumulation.

Upon turning 18, the child’s Vatsalya account seamlessly transitions into a regular NPS account for ongoing retirement planning.

Encourages financial security and early retirement savings for future generations.

Previous Year Question (2017):
Who among the following can join the National Pension System (NPS)?
(a) Only Resident Indian citizens
(b) Persons aged 21 to 55 years only
(c) All state government employees who join after the notification date set by their respective governments
(d) All central government employees, including those in the Armed Forces, who joined on or after April 1, 2004