Over 1.3 lakh minors have been enrolled under the National Pension System (NPS) Vatsalya Scheme since its launch in September last year, the Union government informed Parliament on Monday.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that enrollments were recorded till August 3.
Designed for children, NPS-Vatsalya allows parents or guardians to contribute a minimum of ₹1,000 annually, with no upper limit, to build a retirement corpus for the minor.
The account converts into a regular NPS account once the subscriber attains majority. Contributions made by a parent or guardian qualify for an additional deduction of up to ₹50,000 under Section 80CCD (1B) of the Income Tax Act in the old tax regime.
Chaudhary said the scheme is implemented through Points of Presence — bank and non-bank entities regulated by the Pension Fund Regulatory and Development Authority — and can also be opened online via the NPS Trust platform.
Launched on September 18, 2024, NPS-Vatsalya aims to “promote inter-generational equity and financial security” by encouraging early savings for children, Chaudhary said.
According to a June survey report by Grant Thornton Bharat, 43% of Indians aged 25 or below prefer to retire between 45 and 55 years, but only 11% believe their current investments can meet their pension expectations. More than half (55%) of respondents expect a monthly pension exceeding ₹1 lakh, but only 11% think their current investments are sufficient to achieve this.
