About NPS Vatsalya Plan:

Why in news ? Finance Minister Nirmala Sitharaman in her budget speech 2024-2025 announced the launch of a new pension scheme ‘Vatsalya’ for children (NPS Vatsalya Plan).

• This scheme is a form of the National Pension System (NPS), which has been specially designed for the youth.
• Keeping in mind the future of the children, Sitharaman, while presenting the budget for 2024-25 in Parliament, said that parents and guardians will contribute to this pension scheme.
• When the child becomes an adult, this scheme can be converted into a normal NPS account.

What is NPS Vatsalya scheme?

• The government has started a new scheme NPS Vatsalya. Through this, pension has been arranged for children as well. NPS Vatsalya scheme has been designed as a change in the existing National Pension System i.e. NPS.
• Under this, parents or guardians can open accounts for their minor children and contribute to their retirement savings fund.
• This savings will be useful for the child’s retirement. At the same time, after the age of 18, the child can manage this account himself.