Central Bank of India Introduces NPS Vatsalya for Minors' Financial Future
Overview of NPS Vatsalya
NPS Vatsalya aims to protect a child's financial future by enabling parents to save in a pension account dedicated to minors. Under this innovative scheme, contributions as low as Rs. 1,000 annually make it accessible to families across economic backgrounds.
Key Features
- Eligibility: Open to all minor citizens (up to 18 years of age).
- Operations: Account in the minor's name, managed by a guardian.
- Withdrawal Rules: Up to 25% after 3 years for education or specified medical needs.
- Exit Options: At 18, transition to a standard NPS account with various investment choices.
Investment Options Under NPS Vatsalya
Guardians have the flexibility to choose from various investment options regulated by PFRDA. Investment choices include the Moderate Life Cycle Fund or active options where guardians can manage fund allocation across a range of assets.
Conclusion on NPS Vatsalya
The launch of NPS Vatsalya signifies a substantial step towards ensuring financial security for children in India. With PFRDA overseeing this initiative, families can now secure their children's financial future from an early age.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.