NPS Vatsalya Yojana: Under this scheme, which secures the future of children, an easy option is available for investment and pension contribution. Under this scheme, investment can be started from Rs 1000 on an annual basis.
NPS Vatsalya Yojana: A new initiative for children’s pension was announced in the budget. The option of investing in the National Pension System in the name of children was given and a new scheme was announced, which has been named NPS Vatsalya scheme. Union Finance Minister Nirmala Sitharaman has launched this scheme on Wednesday. Under this scheme, parents will be able to deposit funds to secure the future of their children. After the child turns 18, it will change to NPS by default. Let us know the complete details under this scheme.
How much investment will have to be made
Under this scheme, which secures the future of children, an easy option is available for investment and pension contribution. Under this scheme, investment can be started from Rs 1000 on an annual basis. You can invest as much as you want. Compound interest is received on the deposited amount, due to which a bigger amount can be deposited for the future of children.
Who can invest?
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 code can invest in this scheme.
Terms of 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The money invested under this scheme can be withdrawn a maximum of three times after a lock-in period of 3 years. According to the website of Central Bank of India, up to 25% of the contribution can be withdrawn three times after a lock-in period of 3 years for education, serious illness and disability.
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On an amount of more than Rs 2.5 lakh, 80% of the amount is used to buy annuity, while 20% can be withdrawn as a lump sum. At the same time, an amount of Rs 2.5 lakh or less can be withdrawn in one go.
How to open NPS Vatslya account?
NPS Vatslya accounts can be opened through Points of Presence (POP) present in major banks, India Post, pension funds etc. and online platform e-NPS. ICICI Bank said that it started this scheme by registering accounts of some children under NPS Vatslya. New customers were also issued PRAN for their NPS Vatslya account. To open an account through online medium, you can use this link – https://app.camsnps.com/CRA/auth/enps/register?source=eNPS.
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