VATSALYA Scheme

VATSALYA Scheme

The Union Budget 2024-25 has proposed a new pension scheme named ‘Vatsalya’ for minors.

  • Enables parents and guardians to start savings for minors until the child turns 18.
  • Objective – To enable families to ensure the future financial security of their children and contribute towards their retirement savings.
  • Eligibility – All parents and guardians, whether Indian citizens, NRIs, or OCIs, can open an NPS Vatsalya account for their minor children.
  • Conversion to normal NPS account – On attaining the age of majority, the plan can be converted into a normal NPS (National Pension Scheme) account.
  • Significance –
    • Allows significant accumulation for retirement, with 60% available for withdrawal at retirement.
    • Instills financial responsibility, converting to a standard NPS account at 18, allowing independent contributions.

Source: PIB


Previous Year Question

Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?
1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers
2. Only one member of a family can join the scheme.
3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.
Select the correct answer using the code given below.

[UPSC Civil services Exam – 2016 Prelims]

(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (c)
Explanation:
Statement 2 is not correct.
 The scheme is open to all adults of a family.


Practice Question

Consider the following statements regarding VATSALYA Scheme:

  1. It enables all parents and guardians, whether Indian citizens or NRIs, to start savings for minors until the child turns 18.
  2. On attaining the age of majority, the plan can be converted into a normal NPS (National Pension Scheme) account.

Which of the statements is/are correct?

 
 
 
 

Question 1 of 1

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