Dear readers,
In this article we will provide you detailed
information about the Kisan Vikas Patra (KVP), which will help you in your
studies as well as in your upcoming exams. Hope you like the article.
In a bid to encourage the habit of small
savings among citizens, Finance Minister Arun Jaitley relaunched the once
successful Kisan Vikas Patra (KVP) scheme on 18 Nov 2014. The money invested
under the scheme will be doubled in 100 months (8 years and 4 months). The
minimum investment amount required to start with is Rs.1,000. In the previous
version of the scheme, the minimum investment was only Rs.100.
The word ‘Kisan’ in ‘Kisan Vikas Patra’ scheme
does not mean that the scheme has been introduced only for ‘Kisan’ or farmers
of the country, any citizen of India is free to invest under the scheme.
Background: Kisan Vikas Patra was first launched by
Government of India on April 1, 1988. A committee was set up by the government
to give its suggestions on KVP which was headed by former Deputy Governor of
RBI, Shyamala Gopinath. Upon recommendations by the committee that it could be
misused, the government discontinued the KVP scheme in 2011.
Salient features of the Kisan Vikas Patra:
1. Kisan Vikas
Patra are sold through Post offices across the country but will soon be
available in some government banks too. Any citizen of India can purchase the KVP
from post offices by filling a form and depositing the amount through cash or
cheque.
2. Money will be doubles in 8 years 4 months (100 months). Thus the applicable interest rate
is 8.7%
3. KVP will be available in denominations of Rs.1,000, Rs. 5,000, Rs. 10,000, and Rs. 50,000.
4. There will be no upper ceiling on investment.
5. Minimum
lock-in period is 2 years and 6 months.
6. KVP can be
encashed in eight equal monthly installments after the lock-in period.
7. No KYC norms would be applicable at the time of purchase of
KVP, PAN details will not be required.
8. KVP does not
offer any income tax benefits to the investor. However, withdrawals are
exempted from Tax Deduction at Source (TDS) upon maturity.
9. Facilities of transferring KVP from one post office to
another anywhere in India, and of nomination will be available to all users.