Finance Minister Nirmala Sitharaman had announced the ‘Vatsalya’ NPS in the budget for the financial year 2024-25.
Union Finance Minister Nirmala Sitharaman today (September 18) launched the NPS Vatsalya scheme in Delhi. The Minister of Finance announced this system during the presentation of the 2024 budget.
NPS Vatsalya will help ensure financial security for children as they grow up. Parents can invest in this program on behalf of their children. When the child attains majority, the account will be converted to regular NPS. The child will be able to operate it himself.
Union Finance Minister Nirmala Sitharaman launched the NPS Vatsalya scheme in Delhi.
NPS Vatsalya should be sworn in on minor children’s birthday: Sitharaman Speaking at the launch of NPS Vatsalya scheme, Nirmala Sitharaman said that parents and guardians should consider investing in NPS Vatsalya on the birthdays and other occasions of their minor children.
NPS helps in creating a retirement fund The regular NPS scheme helps build a retirement fund. NPS contributions are invested in market linked instruments like stocks and bonds for higher returns.
Important questions related to NPS ‘Vatsalya’ program you should know the answers to…
Question- What is the objective of the device? answer- The objective of this program is to promote the habit of financial planning and saving from an early age.
Question- Who is eligible for this scheme? answer- All children up to 18 years old.
Question- In whose name will the account be opened? answer- The account will be opened in the child’s name only, but the parents will deposit the money until the child reaches the age of majority.
Question- Will the child’s parents also be among the beneficiaries of this system? answer- No, the only beneficiary of this system will be the child in whose name the account is opened.
Question- How to open an NPS Vatsalya account? answer- Accounts can be opened through a point of presence (POP) at almost all banks, post offices and pension funds in the country. Users can also open this account through the e-NPS online platform.
Question- What is the minimum investment? answer- A Vatsalya account can be opened with a minimum amount of Rs 1000. There is no upper limit on investment.
Question- Can money be withdrawn midway through NPS Vatsalya? answer- Yes, 25% of the total deposit can be withdrawn after the three-year lock-in period. But it can only be withdrawn in case of studies or illness.
Question– What is the maximum number of times you can withdraw money? answer- You can withdraw 25% of the total deposit maximum three times until the child turns 18 years old.
Question- When will it move to normal NPS? answer- Once the child reaches the age of 18, his or her account can be transferred to NPS level 1, i.e. the normal category.
Question- Is exit allowed between the two? answer- No, it is impossible to exit this regime before the child reaches the age of 18.
A fund of Rs 63 lakh will be created in SIP of Rs 10,000. All parents or guardians, whether Indian citizens, NRIs or OCIs, can open an “NPS Vatsalya” account for their minor children. Suppose your child is 3 years old. If you make an SIP of Rs 10,000 in this scheme, then when the child turns 18, a fund of around Rs 63 lakh can be accumulated…
NPS was launched in 2004 and offers regular income in retirement.
NPS was launched in 2004 to provide retirement income to all Indian citizens. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Investors in the scheme can choose to invest in stocks, corporate bonds and government bonds as per their choice. There is also the option to choose an auto-choice lifecycle fund. On retirement, a portion of the corpus is used to purchase the policy. A tax deduction is also available under the Income Tax Act 80C and 80CCD(1B).
Two types of NPS accounts can be withdrawn from the bank There are two types of accounts available in NPS. There is a restriction on withdrawal of funds in the Tier-I account and the minimum investment is Rs 500. While liquidity facility is available in the Tier-II account. Its minimum contribution is Rs 1,000. It can be taken through the bank.