Brief Histroy of Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is a small savings instrument that will facilitate people to invest in a long term savings plan. It is one of money double scheme from government of india, available through post-offices of india. This was originally introduced by the Government of India in 1988 and was again reintroduced in 2014 with some changes. Even though this was popular scheme, a Government Committee formed in 2011 suggested that Kisan Vikas Patra (KVP) could be misused for purposes like money laundering.

In 2014, Kisan Vikas Patra was relaunched with a number of changes including mandatory PAN Card proof for investments over Rs.50,000 and income source proof for investments exceeding Rs.10 lakh. The main advantage of opening a Kisan Vikas Patra (KVP) investment is the availability and ease of process - the Small Savings Directorate offers KVP certificates in all Post Offices across the country. Any resident Indian can invest in a KVP scheme and can obtain a certificate either jointly, individually or in the name of a minor. The principal amount invested in KVP will be doubled in a time of 8 years and 4 months or 100 months. The main target audience for this scheme is people in semi-urban and rural areas

Quick Overview of Kisan Vikas Patra (KVP)

  1. Amount Invested in Kisan Vikas Patra (KVP) doubles in 110 months (9 year and 2 months).
  2. Kisan Vikas Patra (KVP) Certificates can be purchased from Post office.
  3. Nomination facility is available
  4. You can also change your post office
  5. This certificate can be encashed after 2.5 years after date of issue.
  6. Any number of certificates can be purchased by the purchaser.
  7. Kisan Vikas Patra (KVP) can be pledged as security in case of taking loan.

You are eligible to purchase Kisan Vikas Patra (KVP) only if you are

  1. Applicant must be resident of India
  2. Applicant can apply for his own name or on behalf of minor
  3. Trusts are eligible to invest in Kisan Vikas Patra. HUFs (Hindu Undivided Family) and NRIs are not eligible to invest in KVP.

Type of Kisan Vikas Patra (KVP) Certificates

Single holder type Certificates
A single holder type Certificate may be issued to an adult for himself or on behalf of a minor or to a minor.

Joint ‘A’ type Certificates
A Joint ‘A’ type Certificate may be issued jointly to two adults payable to both holders jointly or to the survivor.

Joint ‘B’ type Certificates
A Joint ‘B’ type Certificates may be issued jointly to two adults payable to either of the holders or to the survivor