New Delhi, 18 September (H.S.): The NPS Vatsalya scheme has completed two years, with a total of 4.9 lakh pension accounts opened across the country so far. The assets under management (AUM) under the scheme have reached Rs 403 crore.

According to the Pension Fund Regulatory and Development Authority (PFRDA), 4.9 lakh pension accounts have been opened under NPS Vatsalya during the past two years. The scheme was introduced for children below 18 years of age. Its assets under management have now reached Rs 403 crore.

Over the past two years, the focus has been on increasing enrolment and creating greater awareness about the importance of beginning financial planning at an early age. The pension regulator said the NPS Vatsalya guidelines, issued on January 7 and effective from February 23, have strengthened the framework governing contributions, investments, withdrawals and the transition of the account when the subscriber attains adulthood.

According to PFRDA, the minimum contribution under the scheme has been reduced to Rs 250, while there is no upper limit on contributions. The facility for partial withdrawals has also been increased from two to four times. In addition, investment options have been made more flexible, with subscribers being permitted to invest up to 100 per cent of their contributions in equities.

As NPS Vatsalya enters its third year, the regulator said it aims to extend the scheme to a larger number of children, families and communities across the country.

PFRDA also said that under the gift contribution facility, relatives and friends can contribute towards a child’s long-term financial future.

Union Finance and Corporate Affairs Minister Nirmala Sitharaman launched the NPS Vatsalya scheme on September 18, 2024. The scheme is a contribution-based savings and long-term financial security programme designed for minors.

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Hindusthan Samachar / Jun Sarkar