New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman Tuesday announced a new pension scheme named ‘Vatsalya’ for minor children in the Union Budget 2024-25 tabled in Parliament.

The Ministry of Finance in an official communique quoted the Finance Minister Nirmala Sitharaman as saying that a contributory pension scheme will have contributions by parents and guardians. “On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account,” the Ministry said.

FM also announced that the Committee, to review the NPS, has made considerable progress in its work. She expressed satisfaction that the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees have taken a constructive approach.

“A solution will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens,” the Minister said.