NPS Vatsalya is a pension account for minors
FinTech BizNews Service
Mumbai, September 18, 2024: ICICI Bank today announced the launch of NPS Vatsalya, a pension scheme aimed at securing the financial future of children, at its service centre at BKC in Mumbai, Maharashtra.
The new pension scheme, which will run under the aegis of Pension Fund Regulatory and Development Authority (PFRDA), was proposed in the Union Budget 2024 -2025. It allows contribution by parents/guardians for the minor until they turn adults. On attaining the age of 18, the individual can convert it into a normal NPS account.
ICICI Bank’s announcement of this scheme is a part of the government’s formal launch across the country by Honourable Finance Minister Smt. Nirmala Sitharaman in New Delhi today.
Mr. Sriram H., Head – Deposit Products, ICICI Bank said, “We are delighted to be part of the NPS Vatsalya launch scheme with the Government of India and PFRDA. We have begun this journey by opening our first set of NPS Vatsalya accounts today. We have equipped all ICICI Bank business centres across the country to open the NPS Vatsalya account for customers. This account helps in long-term wealth creation, ensuring that by the time the minor becomes an adult, there is a financial corpus in place for them.”
ICICI Bank inaugurated the commencement of the scheme by registering accounts of a few children under NPS Vatsalya. They also received a symbolic Permanent Retirement Account Number (PRAN) card for their NPS Vatsalya account.
Key attributes of the Vatsalya NPS account:
· Eligibility criteria: Any minor, having PAN card and Aadhar card, who is under the age of 18 is eligible
· Minimum contribution: A minimum of ₹1,000 per year can be contributed with no limit on maximum contribution
· Contributors to the scheme: Parents/guardians can contribute on behalf of their children
· Transition after the age of 18: The minor’s NPS account will transition to a standard NPS account, post the submission of required KYC documents
