{"id":305391,"date":"2024-07-24T18:20:40","date_gmt":"2024-07-24T12:50:40","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=305391"},"modified":"2024-07-24T18:20:40","modified_gmt":"2024-07-24T12:50:40","slug":"vatsalya-scheme","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/vatsalya-scheme\/","title":{"rendered":"Vatsalya Scheme"},"content":{"rendered":"

Source<\/strong>-This post on Vatsalya Scheme<\/strong> has been created based on the article “NEW PENSION SCHEME \u2018VATSALYA\u2019 ANNOUNCED FOR MINORS; CONTRIBUTION BY PARENTS AND GUARDIANS<\/a>” published in “PIB<\/strong>” on 24 July 2024.<\/p>\n

Why in the news?<\/h2>\n

In the recent Union Budget 2024-25, the Finance & Corporate Affairs Minister introduced a new pension scheme named ‘Vatsalya’ for minors.<\/p>\n

About Vatsalya Scheme<\/h2>\n

Description<\/strong>– This scheme, part of the National Pension Scheme (NPS)<\/span>, aims to assist parents and guardians in preparing for their children’s future<\/span> financial requirements.<\/p>\n

Key Features-<\/strong><\/p>\n

A) Parents or guardians can open an account for their minor children<\/span> and contribute towards their retirement savings, which will accumulate until the child reaches 18 years old.<\/p>\n

B) Once the child reaches adulthood<\/span>, the accumulated amount will be transferred to the standard NPS account.<\/p>\n

C) On attaining the age of majority, the plan can be converted seamlessly<\/span> into a normal NPS account.<\/p>\n

D) It operates similarly to the existing NPS<\/span>, which helps individuals build a retirement corpus by making regular contributions throughout their careers.<\/p>\n

E) NPS contributions are invested in market-linked instruments like stocks and bonds<\/span>. This offers the potential for higher returns<\/span> than traditional fixed-income choices.<\/p>\n

Significance of Vatsalya Scheme<\/h2>\n

1) It sets the foundation for responsible financial management<\/span> from an early age.<\/p>\n

2) As these accounts transition into regular NPS plans when the child reaches adulthood, they ensure a smooth continuation of saving habits<\/span> into adulthood.<\/p>\n

Read More-Old Pension Scheme(OPS) vs National Pension System(NPS)<\/a><\/p>\n

UPSC Syllabus<\/strong>-Schemes & Programmes<\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post on Vatsalya Scheme has been created based on the article “NEW PENSION SCHEME \u2018VATSALYA\u2019 ANNOUNCED FOR MINORS; CONTRIBUTION BY PARENTS AND GUARDIANS” published in “PIB” on 24 July 2024. Why in the news? In the recent Union Budget 2024-25, the Finance & Corporate Affairs Minister introduced a new pension scheme named ‘Vatsalya’ for… Continue reading Vatsalya Scheme<\/span><\/a><\/p>\n","protected":false},"author":10374,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,956],"tags":[11872,3590],"class_list":["post-305391","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-schemes-and-programs","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/305391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10374"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=305391"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/305391\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=305391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=305391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=305391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}