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    Question

    What happens to an NPS-Vatsalya account when the minor reaches the age of majority?

    A The account is automatically closed, and the funds are transferred to the minor's bank account. Correct Answer Incorrect Answer
    B The account remains active, but no further contributions can be made. Correct Answer Incorrect Answer
    C The account is converted into a normal NPS account, allowing the individual to continue contributing. Correct Answer Incorrect Answer
    D The funds are locked in until the individual reaches retirement age. Correct Answer Incorrect Answer
    E The account is transferred to the government, and the individual receives a fixed pension. Correct Answer Incorrect Answer

    Solution

    The Union Budget 2024-25 mentions that the NPS-Vatsalya plan can be "seamlessly converted into a normal NPS account" when the minor becomes an adult.

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