Budget 2024: The NPS Vatsalya plan is a new program announced by Finance Minister Nirmala Sitharaman with the goal of encouraging long-term savings for minors. By registering an account on their behalf, parents and guardians can participate in the scheme and invest in their children’s future. On social networking platform X, there has been a surge in reactions following the announcement.
Parents can convert the account into a regular National Pension System (NPS) account once the minor reaches adulthood.
What is the NPS Vatsalya Scheme?
The goal of the NPS Vatsalya plan is to promote early investing and savings among children. Parents or guardians can register an account and contribute to their minor child’s retirement savings under this system. The program is an adaptation of the current NPS with a focus on younger people.
Launched in 2004, the National Pension System (NPS) is a government-sponsored pension scheme designed to give all Indian residents retirement income. Offering a combination of government securities, corporate bonds, and equities, it is a defined contribution based scheme. The Pension Fund Regulatory and Development Authority (PFRDA) oversees the NPS, which is well-known for its flexibility and tax advantages.
Social Media Reactions to NPS Vatsalya Scheme
On social media, the NPS Vatsalya initiative has attracted a lot of attention. A lot of parents and financial professionals have praised the scheme for its ability to help establish the habit of saving early in life. While some have talked about the scheme’s flexibility and financial advantages, others have emphasised the long-term benefits for children.
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