In the budget for the year 2024, the central government announced the NPS Vatsalya scheme. This scheme will be launched today. Union Finance Minister Nirmala Sitharaman will launch the NPS Vatsalya scheme at a program to be held in Delhi. The Finance Minister will launch a portal to subscribe to NPS Vatsalya. During this, she will also release a brochure related to the scheme, which will have complete details about NPS Vatsalya.
NPS Vatsalya Yojana is considered an important step in the pension system. This new scheme is being launched to secure the financial future of children. The management of the scheme will be in the hands of the Pension Fund Regulatory and Development Authority (PFRDA). The NPS Vatsalya Scheme will allow parents and guardians to arrange funds for the future of their children by investing in a pension account.
The investment will start from Rs 1000
Under the NPS-Vatsalya scheme, parents or guardians will be able to open an account in the name of the child with a minimum of Rs 1000. After that, till the age of 18, the parent or guardian will have to deposit a minimum of Rs 1000 in the child's NPS-Vatsalya account every year. According to the SBI Pension Fund Platform, there is no limit on the maximum amount deposited in this account. NPS 'Vatsalya' can also be converted into a non-NPS scheme when the child turns 18.
Who can open an account?
All parents and guardians, whether Indian citizens, NRIs, or OCIs, can open an NPS Vatsalya account for their minor children. NPS Vatsalya is designed to help ensure the financial security of children when they grow up. Parents can invest in this scheme on behalf of their children. When the child becomes an adult, the account will be converted into regular NPS. Compound interest will be given on the money deposited in the account.
The facility to withdraw money also
Parents or guardians will be able to withdraw money from the account opened under the NPS-Vatsalya scheme even before the child turns 18 years old. Under NPS Vatsalya Yojana, after 3 years from the date of opening the account, 25% of the total amount deposited in the account opened in the name of the child i.e. contribution will be allowed to be withdrawn. This facility of partial withdrawal will be available only 3 times till the child turns 18 years old.
