Kisan Vikas Patra (KVP)
Introduction: India Post introduced the Kisan Vikas Patra as a small saving certificate scheme in 1988. Its primary objective is to encourage long-term financial discipline in people. It was discontinued in 2011 and again re-launched in 2014.
Denominations: KVP Certificates are available in the denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000. KVP can be purchased from any Departmental Post office or authorised Bank branches.
Minimum Limit: Rs 1,000/-
Maximum Limit: No Upper Limit
Interest Rate: Click here to check the latest Interest Rate
Maturity : The maturity period depends on the prevailing interest rate. At present rate of 7.3% the amount doubles in 118 months (9 years and 10 months).
The maturity proceeds will be credited to the savings bank account. The interest accrued on the amount is taxable.
Who can buy KVP: An Indian, with 18 years of age (However, an Adult can purchase a Kisan Vikas Patra Certificate on behalf of a minor.)
Who cannot purchase KVP:
- Business entities are not eligible to apply for a Kisan Vikas Patra Certificate.
- Non Resident Indians are not eligible to apply for a Kisan Vikas Patra Certificate.
- HUF or Hindu Undivided Family cannot invest in a Kisan Vikas Patra Certificate.
Premature Withdrawal: Certificate can be en cash after 2 & 1/2 years from the date of issue. Full principle amount with interest will be paid.
Important One Liners:
- PAN Card proof compulsory for investments above Rs. 50,000. To deposit Rs. 10 lakhs and above, you must submit income proofs
- The Kisan Vikas Patra Certificate can also be purchased jointly by two adults.
- A trust can purchase the Kisan Vikas Patra Certificate
- Types and Issue of Certificates – There are three types of certificates for the Kisan Vikas Patra scheme:
- Single Holder Certificate – This certificate is issued to an adult for himself or on behalf of a minor ot to a minor.
- Joint ‘A’ Type Certificate – This type of certificate is issued jointly to two adults and is payable to both the holders jointly or to the survivor.
- Joint ‘B’ Type Certificate – This type of certificate is issued jointly to two adults but payable to either of the two holders or the survivor.