This new scheme was proposed in Budget 2024 by FM Nirmala Sitharaman.
Under NPS Vatsalya, parents/guardians can open an NPS account for their children. They have to contribute an amount every month or year until the child reaches 18 years of age.
Parents/guardians who are Indian citizens, NRIs, or OCIs can open an NPS Vatsalya account.
Once the child turns 18, this scheme can be converted into a regular NPS account. The accrued sum will be transferred to the standard NPS account when the child turns 18.
As of now, Finance Minister Nirmala Sitharaman has ruled out any tax advantage for this scheme.
Open a Groww Account & start investing!