look news india
The government has launched NPS Vatsalya, a pension account for children below 18 years of age. This is a pension scheme launched for children. In this scheme, parents can open a pension account for their children and contribute to their children's better future by investing in it. Compound interest will be given on the investment made in this scheme. In this scheme, an account can be opened in the name of the child with a minimum of Rs 1000 annually. There is no maximum investment limit. This plan comes with a lock-in period of 3 years. After the lock-in period, if the child is below 18 years of age, up to 25% of the total contribution can be withdrawn for circumstances such as education, illness and disability. In this way, money can be withdrawn a maximum of 3 times. This account can be opened through bank, post office, online platform or e-NPS.
A regular NPS account will be created at the age of 18 years
On completion of 18 years, the child's NPS Vatsalya account will be converted into a regular NPS account. Now the child can continue his NPS account if he wants. KYC will be required within 3 months of completion of 18 years of age. After 18 years, at least 80% of the total amount deposited in the account will go to the annuity plan and the remaining 20% can be withdrawn as a lump sum. If the total amount deposited in the account after 18 years is Rs 2.5 lakh or less, then the entire amount can be withdrawn at once.