Axis Bank joins hands with PFRDA to launch NPS Vatsalya scheme

Private sector lender Axis Bank on Wednesday said it had joined hands with the Pension Fund Regulatory and Development Authority (PFRDA) to launch National Pension Scheme (NPS)-Vatsalya, a scheme focused to secure the financial future of children below 18 years. The development followed the launch of the NPS Vatsalya investment scheme by Finance Minister Nirmala Sitharaman earlier in the day.

The finance minister had announced such a scheme in her Budget speech in July.

The NPS Vatsalya initiative is a key step towards empowering families in planning the long-term financial security for their children, the lender said in a press release. 

At the launch of the scheme in the national, the Finance Minister presented a symbolic Permanent Retirement Account Number (PRAN) to one Lamba Karnam Aaditri from Hyderabad, who was selected by Axis Bank. As part of the initiative, Axis Bank opened total 17 NPS Vatsalya accounts and handed over symbolic PRANs to the children.

Senior officials of the bank handed over symbolic PRANs and opened NPS Vatslaya accounts for around 16 children in Bangalore and Ahmedabad. 

“It’s a proud moment for us to be a part of this great mission led by the Government of India towards building a strong pensioned India. This initiative offers a structured and flexible path for wealth creation targeting the future generations of the country, thereby nurturing a financially resilient society," said Amitabh Chaudhry, MD and CEO, Axis Bank. 

"We believe that this will enable parents/ guardians from all socio-economic backgrounds to gain access to valuable tools for securing their children's financial future, providing them with a strong foundation to build their dreams and aspirations.”

The NPS Vatsalya scheme will provide parents and guardians with a range of investment opportunities and pension fund options to invest in their child’s financial future.

Upon attaining the age of 18 years, the NPS Vatsalya account will seamlessly be converted into a regular NPS account.

To open an account, parents or guardians must provide essential documents such as Know Your Customer, the child’s birth certificate, and proof of identity.
 
This initiative underscores Axis Bank’s deep-rooted commitment to driving financial inclusion and enhancing the financial well-being of future generations.

Axis Bank said the government's NPS Vatsalya initiative is aligned with its mission to build "a strong pensioned India, ensuring long-term financial security for families across the country".