What is the primary objective of the NPS Vatsalya scheme launched in 2024?

Correct option is A

The correct answer is (A) To offer a savings-cum-pension plan exclusively for minors

Explanation:

• The NPS Vatsalya scheme, launched in 2024, is designed as a savings-cum-pension plan for minors.
• Parents or guardians can open and manage the account on behalf of their children.
• The key objective is to instill financial discipline and retirement planning habits from an early age by creating a long-term savings mechanism for children.
• Once the minor turns 18 years old, the account is converted into a regular NPS Tier-I account, which the individual can then manage independently.

Information Booster:

• The scheme requires a minimum annual contribution of ₹1,000, with no upper limit.
• It ensures long-term financial security and acts as a foundation for retirement savings.
• By targeting children, the scheme promotes a culture of early savings and long-term financial planning.