Kisan Vikas Patra is a saving scheme that was launched by India Post in 1988. In initial days, the schemes seem very successful, but later many scams reported. The government of India set up a committee which reported the misuse of the scheme. After that, the Govt of India closed the Kisan Vikas Patra scheme in 2011.
In 2014, when Narendra Modi led NDA government comes to power, the scheme again re-started.
Overview of Kisan Vikas Patra Scheme
|Name of the Scheme||Kisan Vikas Patra|
|Launched By||Narendra Modi|
|Objective of the Scheme||To double its income in 100 months|
|Monitor By||India Post|
Kisan Vikas Patra Online(KVP) is a small saving scheme available in post offices and some public sector banks backed by the govt of India. It is a fixed-rate scheme where the customer can double its investment after a specific period of time. Currently, the time period is 124 months.
Types of Kisan Vikas Patra
At present, there are 3 types are availbe. These are:
- Certification of a single Holder
- Joint A
- Join B
Features of the Scheme
- The KVP account has to pay Rs. Can be started with a minimum initial deposit of Rs.1000 (in multiples of Rs. 100)
- Currently the certificates are available in denominations of Rs. 1,000, Rs, 5,000, Rs. 10,000 and Rs. 50,000.
- There is no limit on KVP investment.
- KVP certificates are available in any nearby post office.
- KVP application forms are available online and off-line. In offline mode, one can collect it from any post office and some selected bank.
- If anyone wants to discontinue after opening the account, then he/she will be allowed after two and a half years from the opening date.
- The maturity period of the policy may change depending on the change in rates by the Ministry of Finance.
- It can be transferred from one post office to any other post office without much hassle.
- Most importantly, It also can be transferred from one person to another person.
Also Read, National Pension Scheme
Eligibility criteria for Kisan Vikas Patra
Following are the eligibility criteria to invest in KVP scheme:
- The applicant must be a citizen of India and should be at least 18 years old.
- If the applicant is minor then Parents/guardians can invest on behalf of the minor.
- People who belong to the Hindu Undivided Family (HUF) and Non-Resident Indians (NRI) cannot invest in Kisan Vikas Patra.
Also Read, National Savings Certificate
Kisan Vikas Patra interest rates
The interest rate for the Kisan Vikas Patra (KVP) may vary from time to time based on the govt announcement. The current interest rate for Kisan Vikas Patra(KVP) is 6.9% per annum, at this rate the deposited amount will be doubled in 124 months. The interesting fact about KVP is that it principal compounds annually.
Below are interest rates offered by the Kisan Vikas Patra scheme:
|Time Period||Interest Rate|
|Quarter1 Financial-Year 2020-21||6.9%|
|Quarter4 Financial-Year 2019-20||7.6%|
|Quarter2 Financial-Year 2019-20||7.6%|
|Quarter1 Financial-Year 2019-20||7.7%|
|Quarter4 Financial-Year 2018-19||7.7%|
|Quarter3 Financial-Year 2018-19||7.7%|
|Quarter2 Financial-Year 2018-19||7.3%|
|Quarter1 Financial-Year 2018-19||7.3%|
How to Download Kisan Vikas Patra Form
To get the Kisan Vikas Patra (KVP) Certificate, you need to download the online application form or else you can directly collect it from the nearby post office. To download the online application, Click Here
How to transfer the Kisan Vikas Patra(KVP) certificate online?
To transfer the Kisan Vikas Patra certificate, Post Ofiice India allows its customer to transfer it from one post office to any other post office. To do this, the applicant or the account holder needs to fill up a form called KVP Transfer Form-B. After filling it up, you can submit it to the registered post office along with the required documents.
To download the KVP Transfer Form-B, Click here
Documents Require for the KVP Post Office Transfer
To transfer the KVP certificate, the account holder must submit the the KVP Transfer Form-B along with the below mentioned documents:
- KVP Transfer Form-B
- Any Identity Proof of the applicant such as Aadhaar Card/PAN Card/ Voter ID/Driving License.
- Original KVP Certificate issued by the post office
- An application that mentions the transfer of KVP signed by the account holder.
Also Read, National Pension Scheme
How to transfer KVP Certificate from one Person to another
To transfer a KVP certificate from one post office to another, the account holder must write a written application to the manager of the Post office mentioning the transfer branch. The transfer of KVP is allowed under the follwiong cases:
- If the account holder expires, then his nominee/family member can apply for transfer.
- From single account holder to Joint owners.
- From joint accounts to single account owners.
- From the beholder to the judge of law.
Kisan Vikas Patra Calculator
Below is an example of Kisan Vikas Patra calculator considering a minimum investment of Rs1000
|Duration →||15th Jan 2000-28th Feb 2001||1st March 2001-28th Feb 2002||3rd March 2002-28th Feb 2003||After 1st March 2003|
|Year↓||Amount Accrued ↓|
|2 Years 6 Months||Rs.1246||Rs. 1209||Rs. 1195||Rs. 1170.51|
|3 Years||Rs. 1302||Rs. 1274||Rs. 1256||Rs. 1207.95|
|3 Years 6 Months||Rs. 1407||Rs. 1327||Rs. 1305||Rs. 1267.19|
|4 Years||Rs. 1478||Rs. 1409||Rs. 1382||Rs. 1310.8|
|4 Years 6 Months||Rs. 1585||Rs. 1470||Rs. 1439||Rs. 1355.9|
|5 Years||Rs. 1668||Rs. 1572||Rs. 1534||Rs. 1435.63|
|5 Years 6 Months||Rs. 1779||Rs. 1644||Rs. 1602||Rs. 1488.49|
|6 Years||Rs. 1874||Rs. 1770||Rs. 1672||Rs. 1543.3|
|6 Years 6 Months||Rs. 2000||Rs. 1857||Rs. 1800||Rs.1649.13|
|7 Years||NA||NA||Rs. 1883||1713.82|
|7 Years 3 Months||NA||Rs. 2000||NA||NA|
|7 Years 6 Months||NA||NA||NA||1781.06|
|7 Years 8 Months||NA||NA||Rs. 2000||NA|
|8 Years & 8 Years 7 Months||NA||NA||NA||Rs. 1850.93|
|8 Years 7 Months||NA||NA||NA||Rs. 2000|
|More than 8 years 7 Months||NA||NA||NA||NA|
Benefits of Kisan Vikas Patra (KVP)
- KVP Guaranteed the returns of investment as it is the scheme backed by the Government of India.
- The scheme allows you to secure your future by allowing long-term wealth creation.
- The flexibility of investment. There is no pre-defined upper limit of investment.
- It allows its subscriber to transfer from one person to another as well as from one post office to another.
Kisan Vikas Patra Vs NSC
There is a confusion among people where to invest(Kisan Vikas Patra or NSC). So, below I have zeroed down comparative analysis of Kisan Vikas Patra Vs NSC
|Investments||Minimum- Rs.1000Maximum- No limit||Minimum- Rs.100Maximum- Rs.1,50,000|
|Rate of Interest||6.9% per annum||6.8% per annum|
|Taxation Policy||Returns on KVP are taxable||Enjoys tax benefits and exemption under Section 80(c)|
|Liquidity||Lock-in period of 2.6 years only||Lock-in period of 5 or 10 years|
|Premature Withdrawal||Withdrawals are allowed before maturity but it is advised to keep the corpus invested for 8 years to get best returns||Withdrawals before maturity are very difficult and restricted|
|Loans||Can be used as a guarantee to take loans for housing etc||Can be used as a guarantee to take loans for housing etc|