Kisan Vikas Patra

Kisan Vikas Patra is a saving scheme that was announced by the Government of India that doubles
the money invested in eight years and seven months. The Directorate of Small Savings Government of India, sells these saving bonds through all Post Offices in the country so that the scheme can be accessed by citizens from all over the country. A KVP can be encashed after two and a half years from the date of issue at the value it has been bought and the interest accrued for the period.
The “kisan” in Kisan Vikas Patra does not mean that only farmers can buy these saving certificates but means that the revenue mobilized by this scheme will be used by the Government of India in welfare schemes for farmers. Any individual can safely invest and save their money in the form of Kisan Vikas Patra.
How to Invest?
Kisan Vikas Patra can be purchased from any Post Office by filling a form and depositing the amount in cash or by cheques or demand drafts with the filed form and your photographs. The Post Office will issue a Certificate called Kisan Vikas Patra with your name, amount, date of maturity and amount on the date of maturity.
Who Can Invest?
You can invest in Kisan Vikas Patra if you are a citizen of India and an adult; in your own name, or on behalf of a
minor. A trust is also eligible to invest in KVP. Two adults can jointly buy KVP.
Who is not Eligible?
Kisan Vikas Patra is not for business entities such as a company or institutions. NRIs or HUF (Hindu Undivided Family) are also not eligible to invest in KVP.
Broad features of the new KVP
* Interest: 8.7 per cent.
* Tenure: eight years and four months (100 months).
* Investment doubles in 100 months.
* Minimum lock-in period two years and six months.
Liquidity
* Can be encashed in eight equal monthly instalments after the lock-in period
* Can be transferred to another person by endorsement and delivery
* Can also be given as collateral for loans by banks
* Minimum investment Rs.1,000. Thereafter, in denominations of Rs.5,000, Rs.10,000 and Rs.50,000. There is no
maximum limit.
* Taxability: fully taxable
* Mode of investment: cash or cheque
* Know your customer (KYC) norms: PAN not required but identity/address proof required
* Will be sold initially through post offices across the country, but later through some government-owned banks also.