NPS Vatsalya Scheme- Big news for investors. The Modi government wants to make children financially strong in the future along with the future of adults and the elderly. For this purpose, the NPS Vatsalya Scheme has been announced. Finance Minister Nirmala Sitharaman had talked about launching it in the budget speech 2024. Let us tell you how the NPS Vatsalya Scheme will make children financially strong.

NPS Vatsalya Yojana launched

NPS Vatsalya Yojana is a flexible contribution and investment scheme. In this, the child’s family can invest a minimum of Rs 1,000 annually in his name. While there is no limit on maximum investment. That is, parents can deposit any amount in their child’s NPS Vataslay Account. Investment can be made in NPM Vatsalya account till the child turns 18 years old. The aim of this scheme of the Modi government at the center is to make children financially secure and strong in the future.

What is the eligibility for the scheme?

Under this scheme, any parent, whether Indian or NRI or OCI, can open NPS Vatsalya account for their children below 18 years of age and invest in it. According to a report in a business newspaper, this scheme of Modi government will provide compounding interest which will help in raising huge funds for children in the long term.

It is not that money cannot be withdrawn before the child turns 18 after investing in this scheme. After a period of three years of opening an NPS account, partial withdrawal i.e. 25 percent of the amount deposited in the name of the child can also be withdrawn. But this benefit cannot be availed more than three times till the child turns 18.It is not that the NPM Vatsalya Yojana account will end after the age of 18. After the age of 18, this account will be converted into a normal NPS account and then the account holder can run it further himself.

After attaining the age of 18 years, it will be necessary to get the KYC of the account done within 3 months. Please note that after becoming an adult, the account holder can close it as per his wish. Children below 18 years of age who subscribe to NPS Vatsalya Yojana will get a Permanent Retirement Account Number (PRAN) card. It is clear that the pension of the children will be confirmed.

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