KisanVikaspatrayojna is a small long term saving scheme launched back in the year 1988. Even though this scheme was popular, a Government Committee formed in 2011 suggested that KVP could be misused for purposes like money laundering.So in year 2014, KisanVikasPatra was relaunched with a number of changes including mandatory PAN Card proof for investments over ₹ 50,000 and income source proof for investments exceeding ₹ 10lakhs.
Any resident Indian can invest in a KVP scheme and can obtain a certificate either jointly, individually or in the name of a minor. NRI cannot invest in this scheme . The principal amount invested in KVP will be doubled in a time of 8 years and 4 months or 100 months. The main target audience for this scheme is people in semi-urban and rural areas.
It’s a low risk guaranteed assured return scheme with current interest rate of 7.6%.for financial year 2017-2018.
A KisanVikasPatra comes in the following types.
Single Holder Type Certificate:This KVP type is issued to an adult for himself or to a minor or on behalf of a minor.
Joint A Type Certificate:This is issued to two adults jointly and is payable to both the owners or to the survivor.
Joint B Type Certificate:This Type B KisanVikasPatra is issued jointly to two adults and is payable to either of KVP holders jointly or to the survivor.
KVP, when of Type A and Type B, is released to both the combined owne ₹ In case the adulthood is due to both the heir and owners or due to either of the heirs, it is released to combined owne ₹
The maturity period for KisanVikasPatra that was introduced in 2014 is 8 years and 4 months. On maturity, the amount invested gets doubled. If you INVEST an amount of ₹ 20000, after a period of 8 years and 4 months, the amount will increase to ₹ 40,000.
A KVP certificate is offered in multiple denominations that gives flexibility to the custome ₹ The denominations vary from ₹ 100 to a maximum of ₹ 50,000.
As this schemeis offered by the Government of India and hence the investor can be sure of returns on invested amount. Under KVP, the holder will get double the principal in a short period of eight years and four months.
Investors who are looking for risk free investment option will benefit from KVP scheme. as it is unaffected by inflation as the interest rate remains the same.
Individual who are planning to INVEST in KisanVikasPatra savings scheme, can do so by visiting the nearest Post Office. Currently, it cannot be applied for KisanVikasPatra online. The application form for KisanVikasPatra is available online for the benefit of investo ₹ Also, tools like KisanVikasPatra Calculator, procedure of application, interest accrual chart and transfer of KVP can be found online
There is no cap on the amount that one can invest in KVP. Depending on the purchase power, a person can buy any amount.
KisanVikasPatra certificate can be presented as collateral against loans. Investors can use the same to obtain a loan from banks.
Applicants also have the option to withdraw the amount prematurely in KVP. The lock in period is two years and six months.
KisanVikasPatra is transferable from one person to the other. To pass on the benefits to the new holder, the owner must fulfill all required formalities. Before transferring it to a new holder, it is important to receive an approval at the post office.
A KVP holder can enjoy tax benefits. The income from KVP is taxable but there is no tax deduction on entire money received at maturity, there is no tax deduction at source.
If a KisanVikasPatra certificate is lost, damaged or destroyed, the person can apply for a duplicate of the same to the post office or the bank where the certificate was issued. The application should have the certificate number, amount and date and the circumstances of destruction, defacement or loss. A duplicate certificate issued can be treated as an original certificate for all purposes except that it won’t be encashable without prior verification.