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