Kisan Vikas Patra Scheme

Details

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The ‘Kisan Vikas Patra (KVP)’ is a certificate savings scheme that was launched by the Government of India on 1st April 1988. The scheme provided a facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity.

However, the scheme ‘Kisan Vikas Patra Scheme’ was relaunched in the year 2014 by the Department of Economic Affairs, Ministry Of Finance, Government of India in view of the popular demand and to revitalize Small Savings. The amountt invested in Kisan Vikas Patra (KYP) doubles in 115 months at the present rate. The certificates can be purchased by an adult for himself/herself or on behalf of a minor or to a minor. It can also be purchased jointly by two adults.

A certificate may be transferred from one person to another with consent in writing to an officer of the Post Office or Bank. Under the scheme, the transferee has to be eligible to purchase the certificate. The certificate may be prematurely encashed any time after two years and a half from the date of purchase, in the event of the death of the holder or any holder in case of the joint holder, on the order of a court of Law and forfeiture by a pledge.

Type of Certificates and issue thereof: The Certificates shall be of the following types, namely:

  • Single Holder Type Account: This type of account may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years;
  • Joint A- Type Account: This type of account may be opened jointly in the names of upto three adults payable to all the account holders jointly or to the survivors;
  • Joint B-Type Account: This type of account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors

Benefits

  1. The scheme offers an interest rate of 7.5 % compounded annually on investment.
  2. Amount Invested doubles in 115 months (9 years & 7 months).
  3. No maximum deposit limit.
  4. Accounts can be opened in Post offices and in authorized banks.
  5. KVP can be transferred from one person to another and from one post office to another.
  6. KVP can be encashed after 2 and half years from the date of investment at the specified rates.

Eligibility

  1. Any individual who is a resident of India can avail of the benefits under the scheme.
  2. A parent/guardian may invest on behalf of a minor or person of unsound mind.
  3. The minimum age of minors should be 10 years.
  • A minimum of ₹1000/- and any sum in multiples of ₹100/-, may be deposited in an account.
  • There shall be no maximum limit for deposits in an account or in accounts held by an account holder.
  • An individual may open any number of accounts.
  • The maturity period of an account opened between 12th December 2019 to 31st March 2020 (both days inclusive) shall be 9 years and five months. Deposit made in the account shall double on maturity and the amount of maturity may be repaid to the account holder.
  • The maturity period of an account opened on or after the first day of April 2020 shall be 10 years and four months. Deposit made in the account shall double on maturity.
  • The maturity period of the deposit under this Scheme shall be determined by the rate of interest applicable at the time of opening the account.