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What is Kisan Vikas Patra?
Kisan Vikas Patra is a savings certificate scheme launched in 1988 to encourage people to adopt long-term financial discipline. The scheme, under the Ministry of Finance, was launched by India Post wherein invested money doubled during maturity. The scheme was closed in 2011 by the Government of India after a Government Committee suggested that this scheme can be misused for money laundering purposes as per the findings by Shyamala Gopinath Committee, but later was reintroduced in 2014.
The government reintroduced the erstwhile popular small savings scheme Kisan Vikas Patra (KVP) to encourage people to save more and keep them off fraudulent schemes. Collections under the KVP scheme also helps the government to mobilise funds for financing development schemes. According to the 2014 amendment, the scheme provides a tenure period of 10 years and 4 months or 124 months with a minimum investment of Rs 1,000.
Benefits of KVP
- KVP certificates provide flexible denominations, which vary from Rs 100 to a maximum of Rs 50,000.
- Kisan Vikas Patra is a government scheme and hence ensures guaranteed returns.
- There is no TDS for money withdrawn from KVP scheme after expiry of the maturity date.
- The scheme has no upper limit on the investment amount and provides the same interest rate throughout the year.
- KVP allows premature withdrawal with a lock-in period of 30 months or 2 years and 6 months.
- Kisan Vikas Patra can be transferred to any other eligible individual subject to approval of verification of documents by the post office. The current interest rate provided by the scheme is 7.6% from June 29, 2019. However, from QFY 2020-21 the interest rate has been revised lower at 6.9%
- KVP can also be pledged as security to avail loans from banks.
Types of Kisan Vikas Patra
- Certification of a Single Holder: Furnished to an individual adult or on behalf of a minor
- Joint A: Furnished to two adults jointly. This is payable to both the individuals or the one who survives till maturity
- Joint B: Furnished to two adults jointly and is paid to either of the owners or to the one who survives till maturity
From where to buy Kisan Vikas Patra Certificate
Certificates are available at all India Post Offices and KVP Application forms are available online as well as at India Post Offices and select banks.
Transfer Facility of Kisan Vikas Patra
Kisan Vikas Patra can be easily transferred from one Post Office/bank to another as well as from one person to another.
Documents to get Kisan Vikas Patra Certificate
- Identity proof for KYC process (Aadhaar card/PAN/Voter ID card/Driving License/Passport)
- KVP Application Form
- Address Proof
- Date of Birth certificate
Eligibility Criteria
The following is the eligibility criteria for investing in the KVP scheme:
- The applicant has to be an adult resident of India.
- A parent/guardian may invest on behalf of a minor.
- Hindu Undivided Families (HUFs) and Non-Resident Indian (NRIs) cannot invest in Kisan Vikas Patra.
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