look news india
NPS- Vatsalya Scheme: Finance Minister Nirmala Sitharaman will launch the NPS Vatsalya scheme on September 18, 2024, as announced in the Union Budget 2024-25. The Finance Ministry said in a statement issued on Monday that school children will also attend the launch program. On this occasion, the Finance Minister will launch an online platform to subscribe to NPS Vatsalya, release the brochure of the scheme. Also, Permanent Retirement Account Number (PRAN) cards will be distributed to new minor subscribers. Let us tell you that NPS Vatsalya programs will be organized simultaneously at about 75 places across the country.
what's the plan?
Let us tell you that NPS Vatsalya is a scheme of the Modi government. It has been brought to secure the financial future of children. The Finance Minister had said in his budget speech that parents and guardians will contribute to this pension scheme. When the child becomes an adult, this scheme can be easily converted into a normal NPS account. NPS Vatsalya offers flexible contribution and investment options, allowing parents to invest Rs 1,000 annually in the name of the child. This scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA).
Benefits of NPS Vatsalya-
Let us tell you that NPS-Vatsalya is a financial investment that parents/guardians can make on behalf of their minor children, which is a meaningful way to provide them financial support until they start earning and investing on their own. Know other benefits of this scheme-
Investing at a young age allows for substantial growth over time by taking advantage of compound interest.
By the time your child is old enough to retire, he or she will have a sizeable retirement fund.
Promote the habit of saving in children from an early age.
Help children understand the importance of long-term budgeting.
When the child turns 18, the account can be easily converted into a regular NPS account.
Contributions to NPS can be made tax deductible under certain income tax provisions.
A portion of the fund can be withdrawn tax-free upon retirement.