Kisan Vikas Patra
- Kisan Vikas Patra (KVP) is a small savings certificate scheme which was first launched in 1988 by India Post. The scheme was closed in 2011 after a committee advised the previous government that KVP could be used misused for purposes like money laundering. It was reintroduced in 2014 by the current government with a few changes.
- The principal amount invested in KVP will be doubled in a period of 9 years and 5 months (113 months) with an interest rate of 7.6 percent. (Small savings rate are revised every quarter of the year based on the movement in yields of government securities in secondary market.)
- KVP certificates can be en-cashed after a lock-in period of 2 ½ years. Thereafter, investors can redeem in every six months interval.
- KVP is available in denominations of Rs. 1,000, Rs. 5,000, Rs. 10,000 and Rs. 50,000. It is available for a minimum deposit of Rs. 1,000 and no maximum limit.
- The certificate issued to the beneficiary can be transferred from one person to another and from one post office (or bank) to another.
The KVP scheme can be purchased by:
- An adult in his/her own name, or on behalf of a minor,
- A trust,
- Two adults, jointly.
The scheme is not for business entities such as company, institutions, NRIs or HUF.
- KVP provides a secure and risk-free investment option with assured returns for the small investor who plans to invest in a long terms savings plan. Also, the process of investing in the scheme is easy and simple.
- KVP certificates can be pledged as security to avail loans from banks.
- There is no cap on the amount one can invest in KVP. Also, any number of certificates can be purchased by the purchaser.
- There is no income tax benefit available under the scheme. However, the deposits are exempt from tax deduction at source (TDS) at the time of withdrawal.
- It helps in augmenting the savings rate in the country.
Applicants will have to conform to KYC norms the details of which can be viewed here: Master Circular No. 1 on KYC norms in POSB/SC under AML/CFT regime .
The documents required for availing the scheme are as follows:
- Identification Proof (Passport, Pan Card, Driving Licence, Voter ID Card, etc.)
- Address Proof (Telephone bill, Electricity bill, Bank or PO statement, Ration Card, etc.)
Any one of the above mentioned documents for ID and address proof is sufficient.
- PAN Card proof for investment over Rs. 50,000 and income source proof for investments exceeding Rs. 10 lakh has been made compulsorily after KVP was reintroduced in 2014.
- All photocopies of documents should be self-attested before submitting them.
How to Apply
- The KVP certificates can be purchased from any departmental post office and designated branches of agency banks which have been authorized to accept Public Provident Fund Scheme 1968.
- The forms are available in the post office/bank branch which needs to be filled along with the cash deposit (in cash/cheques/demand drafts). The application form can also be accessed online here: FORM OF APPLICATION FOR PURCHASE OF KISAN VIKAS – PATRA .
- The post office/bank will issue a certificate having your name, amount, date of maturity and amount on the date of maturity. The certificate holder will also receive an identity slip which will act as a proof during encasement of maturity value or during loss of the original certificate.
- Facility of nomination is also available.
You can find the detailed information at:
All the KVP-related application forms for purchase, cancellation, transfer, nomination, etc. can be availed here: National Savings Institute
National Savings Institute,
Department of Economics, Ministry of Finance,
CGO Complex, Seminary Hills,
Phone No. 0712-2510947, 0712-2510057