New Delhi, Aug 11 (PTI) Minister of State for Finance Pankaj Chaudhary on Monday said that 1.30 lakh minor subscribers are registered so far under the NPS Vatsalya Scheme launched in September last year.
NPS-Vatsalya promotes inter-generational equity and financial security by encouraging early savings for children as well as promoting a culture and habit of retirement planning across generations, Chaudhary said in a written reply in the Lok Sabha.
Under the old tax regime, income tax deduction u/s 80CCD (1B) up to Rs 50,000 has been extended towards NPS-Vatsalya contribution made by the parent or guardian with effect from April 1, 2025.
As on August 3, 2025, a total of 1.30 lakh minor subscribers are registered under the NPS Vatsalya Scheme, out of which 29 minor subscribers are from the Dahod district, he said.
The scheme is implemented through Points of Presence (PoPs), which include the bank branches and non-bank entities, under the regulation of the Pension Fund Regulatory and Development Authority (PFRDA).
These PoPs operate across India, in all geographies, thereby ensuring extensive coverage and accessibility, he said, adding that the NPS-Vatsalya account can also be opened through an online platform extended by the NPS Trust, further enhancing reach and convenience.
NPS-Vatsalya Scheme, a contributory pension scheme for minors, was launched on September 18, 2024, with the objective of creating a fully pensioned society.
The scheme is designed for parents/guardians to contribute a minimum of Rs 1,000 per annum with no ceiling on maximum contribution, for their minor subscriber.
On attaining the age of majority, the account of the subscriber can be seamlessly converted into an NPS account.
NPS Vatsalya is a pan-India scheme, open to all citizens of India, including government employees.
Replying to another question, Chaudhary said, currency in circulation has increased from Rs 31,33,691 crore on March 31, 2022, to Rs 33,78,486 crore at the end of March 31, 2023.
It has further increased to Rs 35,11,428 crore at the end of March 31, 2024.
As per RBI, the increase in currency in circulation is a function of demand of a growing economy, and is driven by the growth in GDP, inflation, interest rate, etc, he said.
The volume of UPI transactions has increased from 92 crore in FY 2017-18 to 13,116 crore in FY 2023-24, with 172 billion UPI transactions processed in 2024.
With increasing digitisation and penetration of digital transactions, the exposure of cyber threats, including phishing and malware infiltration, to the bank and customer has increased, he said.
However, he said, only social engineering-related threats have been observed for UPI. The government, RBI and NPCI have been undertaking various user awareness activities, including sending short SMS, radio campaigns and publicity on the prevention of cybercrime.
The government, Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) have been working towards linking UPI with the FPSs of other countries to facilitate cross-border payments.
Presently, UPI is live in seven countries, i.e. UAE, Nepal, Bhutan, Singapore, Mauritius, France and Sri Lanka, he said. PTI DP DP
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