What is the primary objective of the ‘NPS Vatsalya Scheme?

The Finance Minister announced NPS Vatsalya, a new scheme under the National Pension Scheme (NPS) to help parents and guardians plan for their children’s future financial needs. Parents can open an account for their minor children, with funds accumulating until the child turns 18. Upon adulthood, the amount transfers to a standard NPS account and can be converted into a non-NPS plan. NPS, a voluntary retirement scheme, enables individuals to build a retirement corpus through regular contributions. Open to all Indian citizens, including non-residents, NPS invests in market-linked instruments, offering potentially higher returns than traditional fixed-income options.