NPS Vatsalya- a pension scheme for children below the age of 18 years, has received an overwhelming response on the day of the launch on September 18 with 9,705 minor subscribers enrolled under the scheme.
The minimum contribution for the scheme is Rs 1,000 annually and pension would accrue after 60 years of age.
The subscriptions for the scheme came through various Points of Presence (PoPs) and the e-NPS portal. Out of the accounts opened on September 18, 2197 accounts were through e-NPS portal alone.
On Wednesday, Finance Minister Nirmala Sitharaman said that NPS Vatsalya is a significant step in government’s endeavour to promote long-term financial planning and security for all the citizens. Besides securing the future of subscribers, NPS Vatsalya is based on the principle of intergenerational equity by providing cover to older and young members of the family.
It is envisaged that NPS Vatsalya scheme will inculcate the habit of savings among young subscribers and large wealth can be accumulated through power of compounding.
The scheme is open for all minor citizens aged below 18 years. Account can be opened in the name of minor and operated by parent or guardian. Minor will be the beneficiary. Scheme can be opened through various Points of presence regulated by PFRDA such as major banks, India Post, Pension Funds and Online platform (e-NPS).
PFRDA will provide multiple investment choices to subscribers. Subscribers can take exposure in government securities, corporate debt, and equity in different proportions based on risk appetite and desired returns. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.