NPS Vatsalya Scheme
Finance Minister Nirmala Sitharaman launched the NPS Vatsalya Scheme implemented by the Central Government to secure the financial future of children. The Pension Fund Regulatory and Development Authority (PFRDA) will administer the scheme.
Parents can open this account in the name of minor children. Through this money can be invested for children’s retirement. The account is opened in the name of the minor and managed by the parent.
Who is eligible?
All minors are eligible for NPS Vatsalya Scheme. A minimum initial investment of ₹1,000 is required to open this account.
How to open an account?
Parents can open an account online or in person with registered institutions like banks, post offices and pension funds. Account opening process can also be completed through NPS Trust’s ENPS platform.
Several banks including ICICI Bank and Axis Bank have partnered with the Pension Fund Regulatory and Development Authority to implement the scheme.
When is account transfer?
NPS Vatsalya Account is converted into NPS account when the child turns 18 years. This happens automatically. It enables all investment features including auto selection and active selection.
By encouraging savings in children at an early age, NPS Vatsalya Yojana lays a strong financial foundation for the youth. It inculcates disciplined savings and financial responsibility from an early age, says Kurien Jose, CEO, Tata Pension Management.
How much income from savings?
10,000 per annum for the children till their 18th year, at the end of the period At an expected rate of return of 10% the investment is approximately Rs 5 lakh. It is expected to grow up to This is around Rs 2.75 crore if the investor continues to invest till he reaches the age of 60 years. can reach.