The Kisan Vikas Patra (KVP) is a fixed savings scheme available at Indian Post Offices in the form of certificates. The scheme is designed to double an individual’s investment after a predetermined period of time (24 months).
The scheme was launched to encourage long-term investments and savings among the majority of the population and is suitable for investors who do not want to make risky investments and are seeking assured return.
Types of Kisan Vikas Patra
Certification of a Single Holder: Furnished to an individual adult or on behalf of a minor.
Joint A: Furnished to two adults jointly. This is payable to both the individuals or the one who survives till maturity
Joint B: Furnished to two adults jointly and is paid to either of the owners or to the one who survives till maturity
Features of KVP Account
- KVP Account can be started with a minimum initial deposit of Rs 1000 (in the multiples of Rs 100)
- Certificates are currently available in denominations of Rs 1,000, Rs 5,000, Rs 10,000, and Rs 50,000.
- There is no maximum limit on KVP investments.
- Certificates are available at all India Post Offices. KVP Application forms are available online as well and some select banks.
- After two and a half years, premature encashment is allowed, subject to terms and conditions.
- The Ministry of Finance may change the rate which may affect the maturity period of the investment. The maturity value is pre-printed on the certification issued to the investor.
- The certificated are transferable between post offices and individuals.
- Kisan Vikas Patra can be easily transferred from one post office to another as well as from one person to another.
Eligibility Criteria of KVP
The following is the eligibility criteria for investing in the KVP scheme:
- The applicant is an adult resident of India.
- A parent/guardian may invest on behalf of a minor.
- Hindu Undivided Families (HUFs) and Non-Resident Indian (NRIs) cannot invest in Kisan Vikas Patra.
Kisan Vikas Patra (KVP) Maturity Amount Calculator
Below is a descriptive example of calculation of maturity amount and interest rates under the Kisan Vikas Patra scheme:
| 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 ↓ | |||
| 1 year | NA | NA | NA | NA |
| 2 years | NA | NA | NA | NA |
| 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 |
Documents Required for Kisan Vikas Patra Scheme
Following are the documents required to avail the KVP scheme:
- Identity proof for KYC process: Aadhaar card/PAN Card /Voter ID card/Driving Licence/Passport
- KVP Application Form
- Address Proof
- Date of Birth certificate
Is Interest from KVP Scheme Taxable?
Yes, annual Interest accrued under the KVP scheme in taxable under the "income from other sources" category. A tax deductible at source (TDS) of 10% is also subtracted from the interest amount accrued. However, the final maturity amount is exempted from any tax deductions.
How to Transfer KVP Certificate to Another Person?
A transfer of a KVP certificate is possible under the following case:
- Transfer of Certificate of a deceased person to his/her heir
- From a single owner to joint owners
- From joint owners to a single owner
- From the beholder to the judge of law
The subscriber of the application is required to submit a written application of the transfer of the KVP certificate at the registered post office.
Documents required for KVP Post Office Transfer:
- Duly filled and attested Form B
- Proof of Identity (Aadhaar Card/PAN Card/Driving License/Voter ID)
- Proof of Address (Passport/Electricity Bill/Water Bill/Bank statement)
- Original KVP Certificate
- Application validating the transfer, signed by the account holder
Kisan Vikas Patra Scheme Frequently Asked Questions 2020
Can the post office issue a Duplicate Kisan Vikas Patra ?
In the event of a loss, mutilated, defaced, or stolen KVP certificate, the investor can apply for a duplicate KVP certificate. The investor is required to provide the identity slip provided to him/her at the time of issue of the original certificate.
Can Kisan Vikas Patra be encashed only at the post office where the certificate was issued ?
The investor can encash a KVP certificate at other post offices as well. The investor has to produce the identity slip along with the KVP certificate at the time of encashment.
Are Co-operative Banks/Co-operative Societies Permitted to Invest in Kisan Vikas Patra?
According to rule 6 of Kisan Vikas Patra, co-operative banks and cooperative societies are not permitted to invest in this scheme.
Can Non-Resident Indians (NRI) purchase Kisan Vikas Patra ?
NRIs are not eligible to purchase KVP certificates.
What is the maximum investment limit in Kisan Vikas Patra?
KVP certificate can be issued in the following denominations- Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. But, if an individual wants to invest more than Rs.50,000 in the scheme, he/she must submit the PAN card to curb misuse. Hence, there is no maximum limit to investments in the KVP scheme.
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