‘मतर पितर च बलकस्य वर्सल्येन सदैव पोषणं कुर्वन ्ति’, Parents always raise their children with affectionate care and ensure that their children grow up in a loving and supportive environment.
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Every parent wants their children’s future to be secure, whether it be financially, emotionally, or socially. But economic factors play a key role. No one knows what the future will hold, so parents work hard to provide their children with a stable financial foundation to thrive and succeed.
You are watching: What is NPS Vatsalya Scheme? FM Nirmala Sitaraman Launches Child Pension Yojana
NPS Vatsalya is the new pension scheme for children launched by the Central Government, which enables parents to invest in their children’s future financial security and ensure a stable and secure future for their children.
The scheme, which allows parents to contribute to their children’s superannuation funds to provide a safety net for their future, was announced in the 2024-25 federal budget and, according to the Treasury, was launched today, September 18, 2024.
About launching NPS Vatsalya program
Finance Minister Nirmala Sitaraman today launched the NPS Vatsalya programme to help needy children across the country, according to the Finance Ministry.
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Launched in the Union Budget 2024-25, NPS Vatsalya is a new initiative under the National Pension System to enable parents and guardians to make long-term investments for their minor children.
The Pension Fund Regulatory and Development Authority (PFRDA) administers the scheme, which aims to help families plan for their children’s financial future early.
The opening ceremony was held at 75 different locations, with other locations joining the meeting via video conferencing and distributing PRAN memberships to new minor subscribers in their respective areas.
The event was also attended by students, who were informed about the benefits of NPS Vatsalya through interactive sessions. NPS Vatsalya is an important step towards strengthening the pension system in the country and promoting early financial planning among children.
NPSC Vatsalya Assignment: Everything You Need to Know
Finance Minister Nirmala Sitharaman will launch the NPS Vatsalya scheme on September 18, 2024. The key features of NPS Vatsalya include:
- It is available to both Indian citizens and non-resident Indians, and the account can be opened in the name of the child by the legal guardian.
- For NRI and OCI users, contributions can be made from their NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts.
- Once the minor attains 18 years of age, the NPS Vatsalya account will be converted into a regular NPS account.
- Minimum contribution is ₹1,000 per year with no upper limit
- Investment options include default (50% equity), automatic (25-75% equity) and active (up to 75% equity)
- Partial withdrawals for education, medical care and disability are allowed after 3 years, up to 25% of the principal
- Account converts to regular NPS at age 18 with option to continue or exit (20% lump sum, 80% annuity if principal > ₹2.5 lakh).
How to activate NPS Vatsalya’s online platform (eNPS)?
To open an NPS Vatsalya account online, please follow the steps below:
- Visit eNPS Portal: Go to the official website of eNPS which will host the NPS Vatsalya scheme.
- Choose NPS Vatsalya Option: Look for the option to apply for the NPS Vatsalya scheme designed for minors.
- Complete the registration: Fill in the necessary details including the minor’s details and the guardian’s KYC details.
- Upload documents: Provide required documents such as proof of identity and address of the guardian and proof of age of the minor.
- Make initial contribution: Make sure to contribute at least ₹1,000 per year at the time of registration.
- Get PRAN Card: After successful registration, a Permanent Retirement Account Number (PRAN) card will be issued to the minor subscriber.
You can also open an account through Points of Access (POPs), which include banks and India Post.
What documents are required to open an NPS Vatsalya account?
To open an NPS Vatsalya account, the following documents are required:
- Proof of guardian’s identity: This can include Aadhaar card, PAN card, passport or driving license.
- Proof of Guardian’s Address: Any official document that verifies current address.
- Proof of age for minors: Birth certificate or any government-issued document confirming the child’s date of birth.
- Proof of identity of minors: Aadhaar card is recommended if available.
- Contact Information: A valid mobile number and email ID for registration and communication.
- Photo: A recent passport-sized photo of the guardian.
What are the benefits of opening an NPS Vatsalya account for my child’s future?
Opening an NPS Vatsalya Account can provide several benefits in securing your child’s financial future:
- Early savings: Parents can start saving for their children’s retirement from the time they are infants, cultivating their children’s financial discipline and sense of responsibility as early as possible.
- Compound Growth: This plan uses the power of compound interest to allow investments to grow substantially over time, resulting in a significant amount of money by the time the child turns 18.
- Flexible contributions: The minimum annual contribution is just ₹1,000, with no upper limit, making it suitable for families from all economic backgrounds. Monthly contributions can be as low as ₹500.
- Diverse investment options: Parents can choose from a variety of investment strategies, including default, automatic and active selections, to tailor their investment approach to their risk preferences.
- Partial Withdrawal: After three years, parents can withdraw up to 25% of the principal for special needs such as education or medical expenses, providing financial flexibility when needed.
- Seamless Transition: On attaining majority of 18 years, the NPS Vatsalya account will be converted into a regular NPS account, ensuring that the funds continue to grow and can be used for future needs.
- Security of the guardian: If the guardian dies, all property will be returned to the registered beneficiary, ensuring the financial security of the child
The NPS Vatsalya scheme represents a major advancement in India’s pension system, enabling parents to secure their children’s financial future from an early age. The scheme allows for a minimum contribution of Rs 1,000 per year, making it accessible to families from all economic backgrounds.
Flexible investment options, partial withdrawal facility and seamless transition to regular NPS account at the age of 18 make NPS Vatsalya an attractive long-term savings tool.
As the scheme is implemented, it will foster a culture of financial responsibility and planning among the younger generation, paving the way for a more financially secure future for India’s children.
Source: https://dinhtienhoang.edu.vn
Category: Optical Illusion