New Delhi: Finance minister Nirmala Sithramana launched the NPS Vatsalya Scheme for minors on September 18, 2024. Subscribers can open an NPS Vatsalya account and have a PRAN number assigned to minors from a dedicated online platform.
NPS Vatsalya Scheme is a contributory pension scheme. Regulated by the PFRDA, this scheme is designed for individuals aged below 18 years. Individuals can start investing in the NPS Vatsalya scheme with a minimum investment amount of Rs 1,000. NPS Vatsalya account is operated by the minor’s guardian.
NPS Vatsalya Scheme features
The account can be opened and operated in e-NPS mode. The scheme allows for e-KYC> The minor’s guardian is empowered to select the investment options under this scheme. NPS Vatsakya allows for withdrawal after 3 years of opening the scheme for the purpose of education or illnesses.
NPS Vatsalya will transition into NPS Tier 1 once the minor accountholder turns 18. The government aims to promote financial literacy from an early age using this scheme.
Documents required for NPS Vatsalya
To open an NPS Vatsalya account, the minor’s guardian is required to submit the following documents:
S. No.
ID proof
1
Aadhaar Card
2
Driving license
3
Passport
4
Voter ID
5
NREGA job card
6
National Population Register
For date of birth proof, one may require:
S. No.
Date of birth proof
1
Birth certificate
2
School leaving certificate
3
Matriculation certificate
4
PAN
5
Passport
NPS Vatsalya Fund choice
NPS Vatsalya subscribers may opt for default, auto and active choice schemes. While the default choice scheme offers 50 per cent equity, auto choice allows for up to 25, 50 and 75 per cent equity. The active choice scheme allows the guardian to invest in up to 75 per cent equity or 100 per cent corporate debt/government securities.
केंद्रीय अर्थमंत्री @nsitharaman यांनी अर्थसंकल्पात जाहीर केलेल्या अल्पवयीन मुलांसाठीच्या #वात्सल्य नावाच्या नव्या पेन्शन योजनेची सुरूवात 18 सप्टेंबर रोजी होत आहे. नवी दिल्ली येथून होणाऱ्या राष्ट्रीय शुभारंभ सोहळ्यात #नागपूर जिल्ह्याचा ऑनलाईन सहभाग आहे.
#NPSVatsalya #Nagpur pic.twitter.com/szjh62bjJa
— आकाशवाणी बातम्या नागपूर (@airnews_nagpur) September 17, 2024
How much can be withdrawn from NPS Vatsalya on attaining 18 years of age
If the corpus is more than Rs 2.5 lakh, contributors may withdraw 20 per cent of the amount as a lump sum, followed by an 80 per cent investment in an annuity. NPS Vatsalya corpus of up to Rs 2.5 lakh can be withdrawn in its entirety. In the event of the minor’s death, the entire corpus will be returned to the guardian.
NPS Vatsalya Scheme launched: The National Pension System will now offer Vatsalya Scheme for minors. NPS Vatsalya was launched by finance minister Nirmala Sitharaman on September 18, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
