NPS Vatsalya Scheme Unveil Tomorrow:In the budget of the year 2024, the central government had announced the NPS Vatsalya scheme. This scheme is going to be implemented tomorrow i.e. on Wednesday, 18 September. Union Finance Minister Nirmala Sitharaman will launch the NPS Vatsalya scheme in a program to be held in Delhi tomorrow. School children will also participate in this program. The scheme is to be launched as per the announcement made in the Union Budget 2024-25. Complete information related to the scheme will be revealed after the launch.
Portal for NPS Vatsalya will be launched tomorrow
In a notification issued by PIB on Monday, it was told that Union Minister Nirmala Sitharaman will launch a portal for taking subscription of NPS Vatsalya. During this, she will also release a brochure related to the scheme, which will include complete information about NPS Vatsalya. According to the notification issued, Permanent Retirement Account Number (PRAN) cards will also be given to the member children (below 18 years) who subscribe to NPS Vatsalya scheme in the program. According to the Finance Ministry, people from about 75 places across the country will participate in the launch event of NPS Vatsalya to be held in Delhi tomorrow through video conference. Permanent Retirement Account Number cards will also be distributed to the new member children of NPS Vatsalya scheme at these places.
What is NPS Vatsalya Scheme: What is the new scheme
NPS Vatsalya Yojana is an important step in India’s pension system. This new scheme is being launched to secure the financial future of children. The task of managing the NPS Vatsalya Yojana will be in the hands of the Pension Fund Regulatory and Development Authority (PFRDA). NPS Vatsalya Scheme will allow parents to save money for the future of their children by investing in a pension account.
The launch of NPS Vatsalya is an important step by the government towards promoting long-term financial planning and security for all. This is a big step towards securing the financial future of India’s future i.e. children and making them financially empowered.
Also read: PM Modi Birthday: PM Modi is a safe investor, 98% of savings is deposited in FD and NSC
Based on the information available on the SBI Pension Fund platform before the launch of the new scheme, here we are telling you about NPS Vatsalya Scheme, an investment option being launched to secure the financial future of children.
How can NPS-Vatsalya account be opened?
NPS-Vatsalya Scheme is a financial investment option in which Indian parents or guardians can deposit money on behalf of their children to secure their financial future. Under the scheme, parents or guardians can open an account in the name of their child with a minimum of Rs 1000. Till the age of 18, the parent will have to deposit a minimum of Rs 1000 in the child’s NPS-Vatsalya account every year. According to SBI Pension Fund Platform, there is no limit on the maximum amount deposited in this account. That is, parents will be able to deposit any amount in their child’s NPS-Vatsalya account.
Also read : Subhadra scheme: Subhadra scheme launched, apply to get Rs 10,000 annually
Who will be eligible
Any Indian citizen
who is under 18 years of age
It will be necessary to submit KYC
Why Join NPS-Vatsalya?
Protection from uncertainty and long-term financial security
Teaching financial responsibility (concept of pension planning)
Incentives for long term investments
Flexibility in future financial planning
Benefit of compounding interest with long term investments
NPS Vatsalya Scheme: Will I be able to withdraw money when needed?
Before turning 18
You can withdraw the money before the child turns 18 years old.
3 years after joining NPS
The total amount deposited in the account opened in the name of the child i.e. contributionYou will be able to withdraw 25% of the amount.
This facility of partial withdrawal is available 3 times till the customer turns 18 years old
Partial withdrawal can be made for cases such as treatment of specific diseases, disability of more than 75%, education etc. as specified by the Pension Fund Regulatory and Development Authority.
Also read: This hybrid fund of HDFC MF made you a millionaire with just Rs 800 SIP, gave more than 19% annualized return in 30 years
After turning 18 years old
Even the members who have completed 18 years of age can deposit their money in NPS account if they wish. Contributioncan continue
After attaining adulthood, the NPS Vatsalya account will be converted into a regular NPS account like the general public
After completing 18 years of age, the adult will have to get fresh KYC done within 3 months.
If an adult wishes, he can also close his NPS Vatsalya account.
80% of the corpus deposited from the date of opening the NPS Vatsalya account till the age of 18 years will have to be reinvested in the annuity plan. That is, annuity plan will have to be purchased from at least 80% of the corpus deposited in the account. The remaining 20% can be withdrawn. Let us tell you that people investing in regular NPS have to invest at least 40% of their deposit amount to buy annuity on retirement. Annuity provides monthly pension in old age. In the case of NPS Vatsalya Scheme, how much part of the deposit amount in the account will have to be invested to buy annuity after becoming an adult will be confirmed only after the details come tomorrow.
If the total amount deposited in the NPS Vatsalya account is Rs 2.5 lakh or less, then the entire amount can be withdrawn.
Also read: NFO Investment: Want to invest in the new scheme of mutual fund, 5 big NFOs will be open for the next few days, what is special in them
unfortunatein case of death
In case of the death of the child, the total deposited amount will be returned to the parent or guardian. Actually, the guardian associated as nominee in the child’s NPS Vatsalya account will get this amount.
In case of death of the guardian, there will be an option to register another person as guardian through new KYC.
In case of death of both the parents, i.e. mother and father, the legal guardian can continue to remain without paying annual contribution until the child enrolled in the NPS Vatsalya Yojana attains the age of 18 years.
Like regular NPS, NPS Vatsalya scheme is being started for children Two investment options – Active Choice and Auto Choice Will meet.
| Investment amount and tenure | Corpus upon attaining 18 years | Corpus at 60 years of age | ||
|---|---|---|---|---|
| Rate of Return (10%) | Rate of Return (10%) | Rate of Return (11.59%) | Rate of Return (12.86%) | |
| Annual Contribution: Rs 10,000 Tenure: 18 years. | 5 Lakh | 2.75 crores | 5.97 crores | 11.05 crores |
The regular NPS scheme was introduced in the year 2004. In this Till 19th July 2024, the data shows that the average return has been 11.59% (4th column of the list). This return is in the normal case in which 50% of the investment is in equity, 30% in corporate debt and 20% in government securities. On the other hand, someone who has selected the auto invest option in NPS and invested 75% in debt in equity and 25% in government securities, the data till now shows that he has been able to get 12.86% return (5th column of the list).
(Note: SBI Pension Fund Platform emphasizes thatThis example is for information only. The information and calculations shown in the table are based on historical data and estimates, which may differ from the actual returns. Details related to NPS Vatsalya will be clear only after tomorrow.)
Also read: SIP in Index funds: Top 5 index funds, track record of high returns in every phase, SBI and HDFC mutual fund schemes also in the list
How much corpus will be formed when you become an adult
According to the above list of SBI Pension Fund Platform, if a parent opens an account under NPS Vatsalya in the name of his child. If he deposits Rs 10,000 every year till he becomes an adult, then the total corpus will be Rs 5 lakh when he turns 18 years old. This corpus also includes a 10% rate offer return which is compounded. According to this, if a person has to deposit Rs 25,000 every year, then with 10% compounded return, the corpus can be Rs 12.5 lakh. However, these things will be clarified only after the details of NPS Vatsalya are released tomorrow.
