Kisan Vikas Patra (KVP) is a saving instrument launched by the Government for individual savers, wherein invested money doubled during the maturity period.
This savings scheme was first launched by the Government on 1 April, 1988 and was distributed through post offices.
It was discontinued in 2011 and later reintroduced in 2014.
Rate of Interest of KVP as of 20 January 2017 is 7.7%.
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.
Highlights of Kisan Vikas Patra
KVP is considered a part of the National Small Savings Fund.
The amount invested in Kisan Vikas Patra would get doubled in 112 months or nine years and four months.
Kisan Vikas Patra (KVP) certificates are available to the investors in the denomination of Rs. 1000, 5000, 10, 000 and 50, 000.
The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times.
The minimum amount that can be invested is Rs 1000. However, there is no upper limit on the purchase of KVPs.
KVP is not a tax saving instrument as it does not offer any income tax exemption.
The amount of KVP can be withdrawn after 100 months (8 years and 4 months).
The maturity period or lock-in period of a KVP is 2 years 6 months(30 months).
Reintroduction of Kisan Vikas Patra (KVP) was to provide a safe and secure investment avenue to the investors so as to help in augmenting the savings rate in the country.
The scheme is also aimed at safeguarding investors from fraudulent schemes, considering the number of ponzi schemes that have surfaced particularly after the closure of KVP.