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Union Finance Minister Nirmala Sitharaman will officially launch the NPS-Vatsalya scheme on September 18 in Delhi. The event will be attended by notable figures including Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Minister of State for Finance Pankaj Choudhary, and senior finance ministry officials. Nagaraju Maddirala, Secretary of the Department of Financial Services, will also be present.
Overview of NPS-Vatsalya Scheme
- Purpose: The NPS-Vatsalya scheme is designed to allow parents and guardians to contribute towards the retirement savings of minors.
- Conversion Feature: Once the minor reaches the age of 18, the scheme allows for a seamless conversion of the account into a regular NPS account, facilitating a smooth transition into long-term retirement planning.
Key Features
- Eligibility: All parents and guardians, including Indian citizens, NRIs, and OCIs, can open an NPS-Vatsalya account for their minor children.
- Flexibility: Parents can start saving for their child’s retirement as early as infancy. Contributions can be modest, with a minimum of ₹500 per month or ₹6,000 annually.
- Growth Potential: The scheme leverages the power of compounding to enhance returns over the long term, making it a beneficial long-term investment.
Remote Access
- The scheme will also be launched at remote locations via video conference to ensure wider accessibility.
Additional Information
- During her budget speech, FM Sitharaman highlighted the progress made by the Committee reviewing the NPS and expressed optimism about finding solutions that address relevant issues while maintaining fiscal prudence.
Multiple-Choice Questions (MCQs):
- When will Union Finance Minister Nirmala Sitharaman launch the NPS-Vatsalya scheme?
- A) September 15
- B) September 18
- C) September 20
- D) September 25
- Who is the Chairman of the Pension Fund Regulatory and Development Authority (PFRDA)?
- A) Pankaj Choudhary
- B) Deepak Mohanty
- C) Nagaraju Maddirala
- D) Nirmala Sitharaman
- What is a key feature of the NPS-Vatsalya scheme?
- A) It offers a fixed interest rate.
- B) It allows conversion into a regular NPS account once the minor turns 18.
- C) It provides insurance coverage.
- D) It requires a minimum annual contribution of ₹10,000.
- What is the minimum monthly contribution required for the NPS-Vatsalya scheme?
- A) ₹200
- B) ₹300
- C) ₹500
- D) ₹1,000
- Which of the following groups is eligible to open an NPS-Vatsalya account?
- A) Only Indian citizens
- B) Indian citizens, NRIs, and OCIs
- C) Only NRIs
- D) Only OCIs