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What is the primary purpose of the NPS Vatsalya Scheme introduced by the Union Finance Minister?
  • a)
    To provide immediate financial aid to families in need
  • b)
    To help parents save for their children's future retirement
  • c)
    To offer tax benefits for wealthy individuals
  • d)
    To promote investments in foreign markets
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What is the primary purpose of the NPS Vatsalya Scheme introduced by t...
The NPS Vatsalya Scheme is designed specifically to assist parents and guardians in making long-term financial plans for their children, focusing on saving for their future retirement even while they are still minors. This proactive approach encourages early financial planning and investment, which can significantly benefit the child's financial security later in life.
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What is the primary purpose of the NPS Vatsalya Scheme introduced by t...
Understanding the NPS Vatsalya Scheme
The NPS Vatsalya Scheme is a financial initiative aimed at encouraging parents to save systematically for their children's future retirement. This scheme is particularly beneficial for ensuring a stable financial future for children.
Key Features of NPS Vatsalya Scheme:
  • Encourages Long-Term Savings: The scheme promotes disciplined saving habits among parents, allowing them to build a retirement corpus for their children over time.
  • Retirement Planning: By focusing on the long-term financial needs of children, it ensures that they have sufficient funds when they retire, thus reducing dependency on others.
  • Tax Benefits: The contributions made under this scheme may be eligible for tax deductions, providing additional incentives for parents to invest for their children’s future.
  • Flexibility: The scheme allows parents to choose their contribution amounts and investment strategies based on their financial capabilities and goals.

Conclusion:
In summary, the primary purpose of the NPS Vatsalya Scheme is to help parents save for their children's future retirement. This initiative not only secures a financial future for the next generation but also promotes responsible financial planning among families.
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What is the primary purpose of the NPS Vatsalya Scheme introduced by the Union Finance Minister?a) To provide immediate financial aid to families in needb) To help parents save for their children's future retirementc) To offer tax benefits for wealthy individualsd) To promote investments in foreign marketsCorrect answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about What is the primary purpose of the NPS Vatsalya Scheme introduced by the Union Finance Minister?a) To provide immediate financial aid to families in needb) To help parents save for their children's future retirementc) To offer tax benefits for wealthy individualsd) To promote investments in foreign marketsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of the NPS Vatsalya Scheme introduced by the Union Finance Minister?a) To provide immediate financial aid to families in needb) To help parents save for their children's future retirementc) To offer tax benefits for wealthy individualsd) To promote investments in foreign marketsCorrect answer is option 'B'. Can you explain this answer?.
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