This scheme is a good option for parents to use NPS Vatsalya Yojana to set up a good amount of savings for the better future of their children by opening a pension account for their child and investing the money in this account for a long time and taking advantage of the power of compound interest on this money.
NPS Vatsalya Yojana offers flexible contributions and good investment options. In this account, parents can contribute an amount of Rs 1,000 in the child's name in a year, making this scheme affordable for families with all financial backgrounds.
As announced in the Union Budget 2024 in July 2024, Finance Minister Nirmala Sitharaman inaugurated NPS Vatsalya, a pension scheme for all minors. The initiative was launched at only 75 locations across the country, which were allotted to young customers with more than 250 PRAN i.e. Permanent Retirement Account Numbers.