Kisan Vikas Patra Scheme

The ‘Kisan Vikas Patra (KVP)’ is a certificate savings scheme that was launched by the Government of India on 1st April 1988. The scheme provided a facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity.
However, the scheme ‘Kisan Vikas Patra Scheme’ was relaunched in the year 2014 by the Department of Economic Affairs, Ministry Of Finance, Government of India in view of the popular demand and to revitalize Small Savings. The amountt invested in Kisan Vikas Patra (KYP) doubles in 115 months at the present rate. The certificates can be purchased by an adult for himself/herself or on behalf of a minor or to a minor. It can also be purchased jointly by two adults.
A certificate may be transferred from one person to another with consent in writing to an officer of the Post Office or Bank. Under the scheme, the transferee has to be eligible to purchase the certificate. The certificate may be prematurely encashed any time after two years and a half from the date of purchase, in the event of the death of the holder or any holder in case of the joint holder, on the order of a court of Law and forfeiture by a pledge.
Type of Certificates and issue thereof: The Certificates shall be of the following types, namely:

• Single Holder Type Account: This type of account may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years; - J****oint A- Type Account: This type of account may be opened jointly in the names of upto three adults payable to all the account holders jointly or to the survivors; - Joint B-Type Account: This type of account may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors

1. The scheme offers an interest rate of 7.5 % compounded annually on investment.
2. Amount Invested doubles in 115 months (9 years & 7 months).
3. No maximum deposit limit.
4. Accounts can be opened in Post offices and in authorized banks.
5. KVP can be transferred from one person to another and from one post office to another.
6. KVP can be encashed after 2 and half years from the date of investment at the specified rates.

1. Any individual who is a resident of India can avail of the benefits under the scheme.
2. A parent/guardian may invest on behalf of a minor or person of unsound mind.
3. The minimum age of minors should be 10 years.

Deposits:

• A minimum of ₹1000/- and any sum in multiples of ₹100/-, may be deposited in an account.
• There shall be no maximum limit for deposits in an account or in accounts held by an account holder.
• An individual may open any number of accounts.

Payment on maturity:

• The maturity period of an account opened between 12th December 2019 to 31st March 2020 (both days inclusive) shall be 9 years and five months. Deposit made in the account shall double on maturity and the amount of maturity may be repaid to the account holder.
• The maturity period of an account opened on or after the first day of April 2020 shall be 10 years and four months. Deposit made in the account shall double on maturity.
• The maturity period of the deposit under this Scheme shall be determined by the rate of interest applicable at the time of opening the account.

Offline

Application process:

Step 01: Any person or persons, desiring to purchase a Certificate, shall present an application either in person or through an authorized agent of the small savings schemes at a Post Office or Bank. The person may visit the nearest Post Office Branch or a designated bank.
Step 02: Collect the applicant form or download it from the official website.
Step 03: Fill out the application form and attach all the required documents.
Step 04: Fill out the declaration and nomination details.
Step 05: Submit the application form with an initial amount of investment/deposit.
Step 06: Upon processing your application, a KVP certificate is issued immediately. Keep the documents safe which will need at the time of maturity.

Procedure for payment:

Payment for the purchase of a Certificate may be made to a Post Office or Bank in any of the following modes, namely:

• by cash; or
• by locally executed cheque, pay order, or demand draft drawn in favour of the Post Master; or
• by presenting a duly signed withdrawal form or cheque together with the passbook for withdrawal from a Savings Account standing in a credit of the purchaser at the same Post Office or Bank.

Issue of Certificates:

• On payment being made, except where payment is made by a cheque, pay order, or demand draft, a Certificate shall be issued immediately and the date of such Certificate shall be the date of payment.
• Where payment for the purchase of a Certificate is made by cheque, pay order, or demand draft, the Certificate shall not be issued before the proceeds of the cheque, pay order, or demand draft, as the case may be, are realized and the date of such Certificate shall be the date of encashment of the cheque, pay order or demand draft, as the case may be.
• If, for any reason a Certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later be exchanged for a Certificate, and in such a case the date of the Certificate shall be the date of provisional receipt.

Premature closure of account:

1. The account may be prematurely closed by the account holder by filling a specified application form to the accounts office, at any time before maturity under the following circumstances, namely:-
   (a) on the death of the account holder in a single account, or any or all the account holders in a joint account;
   (b) on forfeiture by a pledgee, being a Gazetted Officer;
   (c) when ordered by a court.
2. On the closure of the account under sub-paragraph (1) of the scheme guideline, principal amount along with simple interest calculated at the rate applicable from time to time to Post Office Savings Account for the complete months for which the account has been held, shall be payable.
3. Notwithstanding anything contained in sub-paragraph (2) of the scheme guideline, if an account is closed any time after the expiry of two years and six months from the date of opening of the account, the amount, inclusive of interest shall be payable as per specified rate.

Transfer of account:

An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the following cases, namely:-

1. on the death of the account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees, as the case may be;
2. on the order of the court, the account shall be transferred from the account holder to the court or to any other individual as per the orders of the court;

• on pledging, the account shall be transferred in accordance with paragraph 7 of the scheme guideline;
• in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holder, as the case may be.

Payment on the death of the account holder:

• In the event of the death of the depositor of a single account or of all the depositors in a joint account, the deposit shall be payable to the nominee if a nomination exists or to the legal heir(s).
• Where there are not more than three surviving nominees or legal heirs, they may, at their option continue the account and receive the amount of deposit along with interest on maturity in the manner provided for in this scheme, as if they had opened the account themselves.
• Where the account is not continued under sub-paragraph (2) of the scheme guideline, it shall be closed and the amount of deposit along with interest as provided in paragraph 6 shall be repaid.
• On the death of one or two of the account holders in a joint account, the surviving account holder or holders, if any, shall be treated as the owner or owners of the account and such account holder or holders may continue the account under sub-paragraph (2) of the scheme guideline or close the account under sub-paragraph (3) of the scheme guideline.