NPS Vatsalya, launching September 18, 2024, allows parents to invest for minor children with flexible investment options and future benefits, here are some things to know.
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Announced in the Union Budget 2024, will be launched by Finance Minister Nirmala Sitharaman on September 18, 2024.
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The NPS Vatsalya account is opened in the minor's name, and the guardian is eligible to manage the account until the child reaches adulthood.
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Parents or guardians can choose from multiple investment options managed by pension funds registered with PFRDA.
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This allows investors the flexibility to contribute based on their financial situation and long-term goals for their child’s financial security.
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Subscribers can make partial withdrawals from their NPS Vatsalya account after three years of account opening.
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Upon turning 18, subscribers have the option to exit the NPS Vatsalya scheme.