Federal Bank, one of India’s leading banks has unveiled NPS Vatsalya, a pioneering program inside the National Pension System (NPS) designed exclusively for minors. The Government of India launched NPS Vatsalya on September 18, 2024, to provide a secure and flexible retirement planning solution for children while assuring long-term wealth building through the power of compounding. With a minimal annual contribution of Rs. 1,000, this initiative is accessible to families from all socioeconomic backgrounds, encouraging financial inclusion and early financial planning.
“NPS Vatsalya is a significant step towards securing the financial future of our children. By starting early, we can ensure that they have a robust financial foundation,” said P V Joy, SVP & Country Head – Deposits, Wealth & Bancassurance of Federal Bank. “We are glad to bring this initiative to the citizens of the country, as it is launched by the Government to promote long-term financial planning and security for all.”
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NPS Vatsalya provides diverse investment alternatives, allowing guardians to choose between active and passive investments across multiple asset classes. The scheme is managed by reputed fund managers that are registered with the Pension Fund Regulatory and Development Authority (PFRDA), ensuring skilled investment management. Subscribers can also benefit from tax deductions under Sections 80 CCD (1) and 80 CCD (1B) of the Income Tax Act, making it a tax-effective investment alternative. For more information, go to Federal Bank’s NPS page.
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