Kisan Vikas Patra (KVP) re-launched today

Apart from increasing the level of financial savings, this scheme also guarantees to double one's money in a time period of 100 months.

The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of Communication and IT and Shri Jayant Sinha, Minister of State for Finance among others. Increasing savings rate in the economy was one of the priorities of the new Government on assuming charge. In view of the popular demand and to revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech announced that "Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest". Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.

The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times. The facility of transfer from one post office to another anywhere in India and of nomination will be available. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks. 

Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months. 

Salient Features of re-launched Kisan Vikas Patra :

1.Amount Invested doubles in 100 months ( 8years 4 months)

2.Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000.

3.Minimum deposit Rs 1000/- and no maximum limit.

4.Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.

5.KVP can be purchased from any Departmental Post office. This facility will also be extended shortly to the designated branches of commercial Banks.

6.Facility of nomination is available.

7.Certificate can be transferred from one person to another and from one post office to another.

8.Certificate can be en cashed after 2 1/2 years from the date of issue.

Table Showing Premature closure ofKVP  ( for Den. Rs. 1000 )

Period	Amount Payable
2 and half years but less than 3 years	1201
3  years but less than 3 and half years	1246
3 and half years but less than 4 years	1293
4  years but less than 4 and half years	1341
4 and half years but less than 5 years	1391
5  years but less than 5 and half years	1443
5 and half years but less than 6 years	1497
6  years but less than 6 and half years	1553
6 and half years but less than 7 years	1611
7  years but less than 7 and half years	1671
7 and half years but less than 8 years	1733
8  years but before maturity of the Certificate	1798
On maturity of Certificate  8 Years 4 month  = 100 months	2000
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