Are you worried about your children’s future? Do you want to do something big for your child’s future? Then today’s article is just for you. When the children become old and retire, parents can plan to ensure their financial security at that time. Keeping this thinking in mind, the National Pension System (NPS) Vatsalya Scheme has been introduced by the Pension Fund Regulatory and Development Authority (PFRDA).
NPS Vatsalya Scheme 2024
Finance Minister Nirmala Sitharaman launched the scheme in 2024. She appealed to the people to gift NPS Vatsalya along with gifts to children at their birthday party. The Finance Minister said that if this type of facility was there earlier, all the senior citizens of today would have been getting pensions.
An account can be opened with just 1000 rupees
Now every parent can open an account for their children below 18 years of age under the NPS Vatsalya Scheme with a grant of only Rs 1000 annually. As soon as the child is 18 years old, the account itself will be converted into a normal NPS account, and the benefit of this NPS fund will continue to be received as a pension to the child after the age of 60 years.
Like the NPS account, the money from the Vatsalya scheme will be invested in equity and debt funds. At present, 31 percent of the country’s population is below 18 years of age. In the budget of the current financial year 2024-25, the announcement to launch the NPS Vatsalya scheme was made.
Highlights of NPS Vatsalya
1. Savings-Pension Scheme regulated and administered by PFRDA.
2. All minor citizens up to the age of 18 years are eligible.
3. There is no maximum limit on the contribution of only Rs 1000 annually for opening an account.
4. The account can be opened through any bank, post office, or e-NPS.
5. Documents such as birth date certificate of minor, Aadhaar for parent’s KYC, and driving license as required documents.
6. The account will be operated by the guardian, but the beneficiary will be just a minor.
7. Parents can choose any one of the pension funds registered with PFRDA.
8. Direct transfer to NPS with all citizens on attaining the age of 18 years.
