In the first budget of the NDA government led by Prime Minister Narendra Modi, a special scheme for children was announced. Which is about to be launched. The name of this scheme is NPS Vatsalya Yojana. Which will be launched by Finance Minister Sitharaman. This scheme will be operated by the Pension Fund Regulatory and Development Authority. Through this government investment, a huge amount of money can be collected for the children when they become adults. Under this scheme, parents will be able to deposit funds to secure the future of their children.
How much will be invested
To secure the future of children, this scheme provides equal options for investment and pension contribution. Under this scheme, investment in children’s account can be started from Rs 1000 per year. You can invest as much as you want. Compound interest is received on the deposited amount. So that a bigger amount can be deposited for the future of children.
Who can invest in this scheme
This long term NPS Vatsalya scheme operated by PFRDA is open to all Indian citizens including NRIs. Legal guardians of minors can also open NPS Vatsalya account. Under the eligibility, minors below 18 years of age who have a PAN card can also invest in this scheme.
What are the terms and conditions of NPS Vatsalya Yojana
The money invested under this scheme can be withdrawn a maximum of three times after a lock-in period of 3 years. According to the Central Bank of India, up to 25% of the contribution can be withdrawn three times after a lock-in period of three years for education, serious illness and disability.
Also read : NPS Vatsalya Yojana 2024 [Updated]: Objective, Eligibility, Benefits, Documents, Application, Who announced
80% of the amount above Rs 2.5 lakh is used to buy annuity. While 20% can be withdrawn as a lump sum. An amount of Rs 2.5 lakh or less can be withdrawn in one go.
How to Open NPS Vatsalya Account
NPS Vatsalya accounts can be opened through points of presence in major banks, India Post, pension funds etc. and through the online platform e-NPS. ICICI Bank said that it started the scheme by registering accounts of some children under NPS Vatsalya. New customers have been issued PRAN for their NPS Vatsalya accounts. To open online, one can use https://app.camsnps.com/CRA/auth/enps/register?source=eNPS.