What is NPS Vatsalya Scheme, Know who will get the benefit
NPS Vatsalya Scheme: Minister for Finance Nirmala Sitharaman will roll out the NPS-Vatsalya program on September 18. That function will also commence in 75 places outside Delhi. Video conferences will link other venues. In addition, they will receive Permanent Retirement Account Number (PRAN) cards for the minor members who join the scheme on this occasion. Similarly, the release of mandatory scheme guidelines will be done together with this. However, it has to be reminded that in July, Finance Minister Nirmala Sitharaman unveiled the whole budget for the entire fiscal year of 2024-25 and the announcement of the scheme’s launch.
Its important to note that this is an advanced step for the pension system of the country as it is being unveiled to safeguard the children. This scheme will be administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Online registration will be required
The Finance Minister will launch an online portal for the NPS Vatsalya Scheme. This is the place where the child’s legal guardians or parents have to register. They will be issued a permanent retirement account number upon completion of this process.
Socioeconomic status will no longer be a hindrance
This scheme has an annual contribution of rupees one thousand minimum because parents will be able to invest one thousand in the name of their child. This way, families of all socioeconomic groups will be able to take advantage of the program. The advantage of such investment for a long period can enhance the returns through compound interest multiplicatively.
What is NPS Vatsalya?
This scheme has been incorporated, focusing on the youth. It allows the parents or guardians of the minor children to open an account on behalf of the minor and make savings for the child’s pension. After the perspective child becomes an adult, this scheme is able to be changed to a normal NPS account.
Who will be eligible?
All parents and legal guardians of a child, whether an Indian citizen or an NRI or OCI person, have eligible citizenship status regardless of the country for whom he or she is an NPS-Vatsalya applicant for his/her underage children. It will be them that will run it until the child becomes an adult.
