NPS Vatsalya Scheme: Pension accounts of minors can now be opened in the country so that a large corpus can be created for them in the long term and their future can be secured financially. Finance Minister Nirmala Sitharaman has launched the NPS Vatsalya Scheme for minors. Through this scheme, people of such age who were deprived of it until now can be linked with pension benefits. Minors can also be linked with pension benefits.
PRAN Cards Distributed To 9 Children
Finance Minister Sitharaman also distributed Permanent Retirement Account Numbers to nine children along with the launch of NPS Vatsalya Yojana. In her address, the Finance Minister appealed to the parents and said that whenever you go to a child’s birthday celebration, contribute to that child’s NPS Vatsalya account; this will help create a large corpus for the child in the coming days.
The Finance Minister said that if there had been a scheme like NPS Vatsalya earlier, today’s senior citizens would also benefit from pensions. The Finance Minister said that through NPS Vatsalya, the parents’ tendency to invest and save will increase.
A Regular NPS Account Will Be Created On Attaining Adulthood
NPS Vatsalya scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA). On this occasion, PFRDA Chairman Deepak Mohanty said in his address that it was believed that pensions are for government employees. However, after the advent of NPS, it became available to private sector employees and common people. And now children can also be linked with pension through the NPS Vatsalya scheme. He said that after the minor becomes an adult, NPS Vatsalya will be converted into a regular NPS account, and upon getting employment, it can be ported to the NPS account of the workplace.
Deepak Mohanty said pension assets are long-term assets. If they are fully capitalized, their big benefits can be seen through investment and economic growth. 31 percent of the population is below 18 years of age. If retirement planning is started early, it can be of great benefit. In such a situation, the need for a pension scheme was felt to develop the tendency of investment and savings.
What is NPS Vatsalya Scheme
Under the NPS Vatsalya Scheme, parents can save for their children’s future by investing in a pension account, creating a big corpus for them in the long term. NPS Vatsalya provides flexible contributions and investment options. Parents can invest at least Rs 1,000 annually in the child’s name.
How and Where Will the NPS Vatsalya Account Be Opened
NPS Vatsalya account can be opened with an annual contribution of only Rs 1000.
NPS Vatsalya account can be opened by visiting bank branches or online.
The facility to open an NPS Vatsalya account will also be available in post offices and PFRDA offices.
