The Kisan Vikas Patra (KVP) is a certificate savings scheme initiated by the Government of India on 1st April 1988. Initially designed to facilitate unlimited investment in various denominations through post office purchases, the original scheme offered a maturity period of 5½ years with the investment doubling at maturity. In response to popular demand and to revitalize small savings, the scheme was relaunched in 2014 by the Department of Economic Affairs, Ministry of Finance. At the present rate, the amount invested in KVP doubles in 115 months. Certificates can be purchased by an adult for themselves, on behalf of a minor, or jointly by two adults, and they can be transferred between individuals subject to written consent and eligibility of the transferee.
Types of Certificates
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Single Holder Type Account:
Can be opened by an adult for themselves, on behalf of a minor or a person of unsound mind (by their guardian), or by a minor who is at least ten years old. -
Joint A-Type Account:
Can be opened jointly in the names of up to three adults, payable to all account holders jointly or to the survivors. -
Joint B-Type Account:
Can be opened jointly in the names of up to three adults, payable to any one of the account holders or to the survivor(s).
Benefits
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Interest Rate:
Offers an interest rate of 7.5% compounded annually. -
Doubling of Investment:
The invested amount doubles at maturity. For accounts opened between 12th December 2019 and 31st March 2020, the maturity period is 9 years and 5 months. For accounts opened on or after 1st April 2020, the maturity period is 10 years and 4 months (subject to the prevailing interest rate at the time of account opening). -
No Maximum Deposit Limit:
There is no upper limit on the amount that can be deposited in an account or across accounts held by an individual. -
Transferability:
Certificates can be transferred from one person to another with proper consent and from one post office to another. -
Premature Encashment:
Certificates can be prematurely encashed after two and a half years from the date of purchase under certain conditions such as the death of the holder, court orders, or forfeiture by pledge.
Eligibility
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General Eligibility:
Any individual who is a resident of India can invest in KVP. -
For Minors/Persons of Unsound Mind:
A parent or guardian may invest on behalf of a minor or a person of unsound mind. The minimum age for a minor to have a KVP account is 10 years. -
Deposits:
- The minimum deposit is ₹1,000, and additional deposits must be made in multiples of ₹100.
- There is no maximum limit on deposits.
- An individual may open multiple KVP accounts.
Application Process
Offline
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Step 1:
Visit the nearest Post Office branch or a designated bank that offers small savings schemes. -
Step 2:
Collect the application form either in person or download it from the official website. -
Step 3:
Fill out the application form, attach all required documents (including identity and age proofs), and complete the declaration and nomination details. -
Step 4:
Submit the application form along with the initial investment amount. -
Step 5:
Upon processing the application, a KVP certificate is issued immediately. Retain all documents carefully as they will be required at the time of maturity.
Payment Procedure:
- Payment can be made by cash, locally executed cheque, pay order, or demand draft drawn in favor of the Post Master.
- If payment is made by cheque (or similar instrument), the certificate is issued only after the cheque is encashed, and the certificate date is the date of encashment.
- In cases where immediate issuance is not possible, a provisional receipt is provided, which can later be exchanged for the certificate.
Additional Provisions
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Premature Closure:
An account may be prematurely closed under specific circumstances such as the death of the account holder, forfeiture by a pledgee, or by a court order. In such cases, the principal and accrued interest (calculated as per the applicable rate) will be paid. -
Transfer of Account:
Accounts may be transferred from one individual to another under conditions such as the death of the account holder, court orders, or as part of a pledge arrangement. -
Payment on Death:
In the event of the depositor’s death, the certificate amount is payable to the nominee or legal heirs, who can choose to continue or close the account.
Documents Required
- Passport-sized photograph.
- Aadhaar Card.
- Copy of the PAN Card.
- Proof of age (e.g., Birth Certificate).
- Additional valid documents for identification and address proof, such as:
- Passport
- Driving License
- Voter’s ID Card
- Job card issued by NREGA (signed by a State Government officer)
- Letter from the National Population Register
Frequently Asked Questions
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Can I transfer my KVP account to someone else?
Yes, a KVP account can be transferred to another eligible individual with written consent. -
What are the eligibility criteria for Kisan Vikas Patra?
Any resident of India can invest, and accounts can be opened for adults, minors (by a guardian), or jointly by two adults. -
Is there a maximum limit on the investment amount?
No, there is no maximum limit on the amount that can be deposited in a KVP account. -
What is the interest rate offered by Kisan Vikas Patra?
The scheme offers an interest rate of 7.5% compounded annually. -
What is the tenure of a Kisan Vikas Patra account?
The tenure varies: for accounts opened between 12th December 2019 and 31st March 2020, it is 9 years and 5 months; for accounts opened on or after 1st April 2020, it is 10 years and 4 months (subject to the prevailing interest rate). -
How do I open a Kisan Vikas Patra account?
Visit any post office or designated bank, collect and fill out the application form, submit the required documents and initial investment, and receive your KVP certificate. -
Can I nominate someone for my KVP account?
Yes, you can designate a nominee for your KVP account. -
Can I prematurely close my KVP account?
Yes, but premature closure is permitted only after two and a half years under specified conditions. -
Can I open a joint KVP account?
Yes, joint accounts are available in two types: Joint A-Type (payable to all account holders jointly) and Joint B-Type (payable to any one of the account holders or survivors).