Wed Sep 18 15:50:12 UTC 2024: ## ‘NPS Vatsalya’: A New Scheme for Securing Your Children’s Future
The Finance Minister, Nirmala Sitharaman, launched the ‘NPS Vatsalya’ scheme on Tuesday, fulfilling a promise made in the 2024 budget. This scheme empowers parents to invest in a pension account for their children, ensuring a secure financial future.
NPS Vatsalya is an extension of the existing National Pension System (NPS). Parents can join this scheme online or through banks and post offices. ICICI Bank and Axis Bank have already announced their participation in the scheme.
Parents can withdraw up to 25% of the total accumulated amount after three years of initial contributions, for educational or medical expenses. This facility is limited to three times before the child turns 18.
The account is opened in the child’s name, but operated by their guardian. The child remains the sole beneficiary. The scheme offers all investment options through auto-choice/active choice. The primary goal is to strengthen the financial base for the future of children.
**’One Nation, One Election’ Proposal Faces Opposition**
Meanwhile, the Modi government has approved the ‘One Nation, One Election’ proposal. This initiative, aimed at holding simultaneous elections for all national and state legislatures, has been met with mixed reactions. While the Congress and RJD have voiced their opposition, the JD(U) has welcomed the proposal. A bill is likely to be introduced in the winter session of parliament.
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