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.
Finance Minister Nirmala Sitharaman will launch the NPS Vatsalya scheme on 18 September 2024 as announced in the Union Budget 2024-25. The Finance Ministry said in a statement issued on Monday that school children will also participate in the launch event. On this occasion, the Finance Minister will launch an online platform for subscribing to NPS Vatsalya, release the scheme brochure. 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 is 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).
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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.
- Your child will have a sizeable retirement fund by the time he is old enough to retire.
- Promote saving habits in children at an early age.
- Help children understand the importance of budgeting for the long term.
- When the child reaches 18, the account can easily be converted into a regular NPS account.
- Certain income tax provisions may allow contributions to NPS to be tax deductible.
- A part of the corpus can be withdrawn tax-free on retirement.
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