NPS Vatsalya represents a significant advancement in India's pension system, aims to start early in safeguarding children's financial future

NPS Vatsalya launch: Rules regarding eligibility, investment amount, withdrawals, how to buy online The Pension Fund Regulatory and Development Authority (PFRDA) will oversee the Scheme's administration

The Union Finance Minister, Nirmala Sitharaman, will launch NPS Vatsalya, an online platform for subscribing to NPS Vatsalya, and even issue Permanent Retirement Account Number (PRAN) cards to newly registered minor subscribers.

This new program represents a significant advancement in India's pension system, aims to start early in safeguarding children's financial future.

The Pension Fund Regulatory and Development Authority (PFRDA) will oversee the Scheme's administration.

What is NPS Vatsalya

NPS Vatsalya will allow parents to save for their children’s future by investing in a pension account and ensure long-term wealth with the power of compounding. NPS Vatsalya offers flexible contributions and investment options, allowing parents to make investment of Rs. 1,000 annually in the name of the child, thus making it accessible to families from all economic backgrounds.

New NPS scheme for minors announced in budget 2024: Parent can plan pension for their kids which will be transferred to them once they attain majority

Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Basics of Generative AI : Unveiling Tomorrow's Innovations
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, Developer and Lead Instructor
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, Developer and Lead Instructor
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, Developer and Lead Instructor
Finance
Financial Literacy - TDS, Budget, Income Tax Act, GST, Indirect tax
By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer
Leadership
Business Storytelling Masterclass
By - Ameen Haque, Founder of Storywallahs
Future of Marketing & Branding Masterclass
By - Dr. David Aaker, Professor at Haas School of Business
HR & People Management
Human Potential and the Future of Employment
By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Finance
Financial Reporting and Analytics
By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers

NPS Vatsalya- Withdrawal, exit and death

According to the Central Bank of India website: “Withdrawal up to 25% of contribution after a lock-in period of 3 years allowed for education, specified illness, and disability. Maximum three times.

Upon attainment of age of 18 years, seamless shift to NPS Tier – I (All Citizen).

Exit allowed on attainment of 18 years of age:

Corpus more than Rs. 2.5 lakh: 80% of the corpus is utilized for the purchase of annuity and 20% can be withdrawn as a lump sum.
Corpus less than or equal to Rs. 2.5 lakh: Entire corpus can be withdrawn as a lump sum.
On death, the entire corpus would be returned to the guardian.”

Salient features of NPS- Vatsalya

As per the Central Bank of India website:
Scheme: A saving-cum-pension scheme regulated and administered by the PFRDA.
Eligibility: All minor citizens (age till 18 years).
Operations:
Account opened in the name of minor and operated by Guardian.
Minor to be the sole beneficiary.

Where to open account

NPS Vatsalya account can be opened through Points of Presence (POPs) which include major banks, India Post, Pension Funds, etc. and the online platform, e-NPS.

"NPS Vatsalya Scheme for minors is being launched today. The Scheme allows you to open an account for your child's secure future. This scheme, regulated by PFRDA, provides a range of investment choices and NPS benefits from a young age. Ensure a strong financial start for your child! Open your child's account click https://app.camsnps.com/CRA/auth/enps/register?source=eNPS - CAMS CRA," CAMS said in an SMS sent to NPS investors.

Documents required to open NPS-Vatsalya

KYC of guardian by submitting Proof of Identity and Address.
Date of Birth proof of the Minor
NRE/NRO Bank Account (solo or joint) of the minor if the guardian is NRI.

Investment Choices
A guardian may select any pension fund that is PFRDA-registered.

Default Choice: Moderate Life Cycle Fund - LC-50 (50% equity).
Auto Choice: Guardian can choose Lifecycle Fund - Aggressive - LC-75 (75% equity), Moderate LC-50 (50% equity), or Conservative LC-25 (25% equity).
Active Choice: Guardian actively decides allocation of funds across Equity (up to 75%), Corporate Debt (up to 100%), Government Securities (up to 100%), and Alternate Asset (up to 5%).

This story originally appeared on: India Times - Author:Faqs of Insurances