**NPS Vatsalya Scheme: Lifetime lump sum pension for children, Centre’s new scheme**
The Central Government recently introduced a pension scheme specifically for children, named **NPS Vatsalya Scheme**. Under this scheme, parents can secure their children’s future, while the children will get the benefit of a permanent pension for life. This initiative of the Center is seen as a major financial protection for the children of the country.
What is this NPS Vatsalya Scheme?
**Vatsalya Scheme** under NPS or National Pension System was mainly introduced to provide financial security to children. Through this scheme, parents can make a permanent investment for their children’s future. When the child completes the age of 18, he will start getting pension benefits under this scheme and can enjoy it for life.
How much money must be deposited?
In this scheme the parents will regularly deposit a certain amount of money. Usually there will be an option to deposit money on monthly or yearly basis. The pension will be determined after the child turns 18 based on the amount of deposits. Parents can start investing before the child turns 18 if they want.
If you want long-term savings and a reliable pension system for your children’s future, this scheme can be a good option.
How to deposit?
Opening of an NPS account is mandatory for depositing money under this scheme. This account can be opened easily through online platforms or government banks. After that it will be possible to invest regularly. The scheme will be administered under the supervision of the Pension Fund Regulatory and Development Authority (PFRDA).
Benefits:
1. **Tax Benefits:** Investors through NPS can get tax exemption under Section 80C and 80CCD(1) of the Income Tax Act.
2. **Lifetime Pension:** The pension benefits will start only after the child attains the age of 18 years, which will continue for the entire life.
3. **HIGH INTEREST RATE:** Regular deposits and long-term investments can earn good returns in the form of interest.
4. **Flexibility:** Deposit rules and duration can be decided by the parent as per his convenience.
Through this scheme, the government has opened a big way of financial security for the future generations of the country.