Sarkari Yojana
Kisan Vikas Patra Scheme
About Kisan Vikas Patra Scheme
Kisan Vikas Patra (KVP) is a certificate-based savings instrument that the Government of India introduced on 1st April 1988. It allowed savers to invest without any upper limit by buying certificates of various denominations at post offices, and at the time of its launch the sum invested doubled after a maturity term of 5½ years. In 2014, responding to strong public demand and the need to give a fresh push to Small Savings, the Department of Economic Affairs under the Ministry of Finance, Government of India, brought the scheme back. At the rate currently in force, money placed in KVP doubles within 115 months. A certificate can be bought by an adult in their own name, on behalf of a minor, or in a minor’s name, and two adults may also purchase one jointly. Ownership of a certificate can be shifted from one holder to another once written consent is given to a Post Office or Bank officer, provided the person receiving it meets the eligibility conditions for holding a certificate. Encashing before maturity is allowed only after two and a half years have passed since purchase, and only where the holder (or a joint holder) has died, a court has so directed, or the certificate has been forfeited under a pledge. Type of Certificates and issue thereof: Certificates are issued in the following forms:
- Single Holder Type Account: Opened by an adult in their own name, on behalf of a minor or a person of unsound mind for whom they act as guardian, or by a minor who has reached ten years of age;
Joint A-Type Account: Opened jointly by as many as three adults, with proceeds payable to all holders together or to the survivor(s);
Joint B-Type Account: Opened jointly by as many as three adults, with proceeds payable to any one of the holders or to the survivor(s)
Scheme Overview
Central Government
Ministry Of Finance
Post Office Branch Or A Designated Bank
Individual
01 Apr 1988
Scheme Details
Eligibility Requirements
To qualify for Kisan Vikas Patra Scheme, applicants must satisfy the following conditions:
Any resident individual of India is entitled to…
Any resident individual of India is entitled to the benefits offered under this scheme.
Investment on behalf of a minor or a…
Investment on behalf of a minor or a person of unsound mind may be made by a parent or guardian.
Minors must be at least 10 years old…
Minors must be at least 10 years old to qualify.
Deposits:
Deposits start at a minimum of ₹1000/- and thereafter must be in multiples of ₹100/-.
No ceiling applies to how much can be deposited in a single account or across accounts held by one person.
There is no cap on the number of accounts an individual may open.
Payment on maturity:
For accounts opened between 12th December 2019 and 31st March 2020 (inclusive of both dates), the maturity term is 9 years and five months, at the end of which the deposited sum doubles and the maturity amount is paid to the account holder.
Accounts opened on or after 1st April 2020 mature in 10 years and four months, with the deposit doubling by that date.
The applicable maturity period for a deposit under this Scheme depends on the interest rate in force when the account was opened.
Benefits Provided
Kisan Vikas Patra Scheme provides the following benefits to eligible applicants:
Investments earn interest at 7.5% per annum, compounded…
Investments earn interest at 7.5% per annum, compounded yearly.
The invested sum doubles in 115 months (9…
The invested sum doubles in 115 months (9 years and 7 months).
There is no upper limit on how much…
There is no upper limit on how much can be deposited.
Accounts may be opened at post offices as…
Accounts may be opened at post offices as well as authorized banks.
A KVP certificate can be moved from one…
A KVP certificate can be moved from one holder to another and from one post office to a different one.
Premature encashment is possible after two and a…
Premature encashment is possible after two and a half years from the investment date, at the rates specified.
Documents Required
Applicants should keep the following documents ready before starting the application:
A passport-size photograph
A passport-size photograph
Aadhaar Card
Aadhaar Card
A copy of the PAN card
A copy of the PAN card
Proof of age, such as a Birth Certificate
Proof of age, such as a Birth Certificate
Any one of the following is accepted as…
Any one of the following is accepted as an officially valid document for identity and address verification:
Passport
Driving licence
Voter's ID card
Job card issued under NREGA and signed by a State Government officer
A letter from the National Population Register bearing the person's name and address
1988-04-01
How to Apply
Offline Application
Applicants can apply for Kisan Vikas Patra Scheme through the offline application process outlined below.
Application process:
Anyone wishing to buy a Certificate must submit…
Anyone wishing to buy a Certificate must submit an application in person, or through an authorised agent of the small savings schemes, at a Post Office or Bank — this can be done at the nearest Post Office branch or a designated bank.
Obtain the application form at the branch, or…
Obtain the application form at the branch, or download it from the official website.
Complete the form and attach all supporting documents
Complete the form and attach all supporting documents.
Enter the declaration and nomination particulars
Enter the declaration and nomination particulars. Step 05: Hand in the completed application along with the initial deposit/investment amount.
Once the application is processed, the KVP certificate…
Once the application is processed, the KVP certificate is issued right away — retain the paperwork safely, as it will be needed at maturity.
Procedure for payment:
A Certificate can be paid for at a Post Office or Bank through any of these methods:
cash payment; or
a locally drawn cheque, pay order, or demand draft made out to the Post Master; or
a signed withdrawal form or cheque accompanied by the passbook, drawing on a Savings Account the purchaser holds at the same Post Office or Bank.
Issue of Certificates:
Unless payment is made by cheque, pay order, or demand draft, the Certificate is issued at once, dated the day payment was made.
When a cheque, pay order, or demand draft is used, the Certificate is issued only once the instrument has been realised, and it carries the date on which that encashment happened.
If issuing a Certificate immediately is not possible for any reason, the purchaser is handed a provisional receipt that can later be exchanged for the Certificate, which then bears the date of that provisional receipt.
Premature closure of account:
1. Before maturity, the account holder may close the account early by submitting the prescribed application form to the accounts office, in any of these situations:-
(a) the death of the account holder for a single account, or of any or all holders in a joint account;
(b) forfeiture ordered by a pledgee who is a Gazetted Officer;
(c) a court direction to that effect.
2. Where the account is closed under sub-paragraph (1), the holder receives the principal along with simple interest, worked out at the rate applicable to Post Office Savings Accounts from time to time, for each complete month the account was maintained.
3. Regardless of sub-paragraph (2), if closure happens more than two years and six months after the account was opened, the payable amount — including interest — follows the specified rate instead.
Transfer of account:
An account can be transferred to another individual — provided that person is eligible to open an account under this Scheme — in the following situations:-
1. if the holder of a single account dies, or all holders of a joint account die, the balance passes to the legal heirs or nominees, as applicable;
2. where a court so directs, the account moves from the holder to the court or to whichever individual the court names;
where pledging is involved, the transfer follows paragraph 7 of the scheme guideline;
if one of several joint holders dies, the account is transferred into the name(s) of the surviving holder or holders.
Payment on the death of the account holder:
If the depositor of a single account, or all depositors of a joint account, pass away, the deposit goes to the nominee where one has been named, or otherwise to the legal heir(s).
Up to three surviving nominees or legal heirs may choose to keep the account running and collect the deposit with maturity interest under the scheme's normal terms, just as if they had opened it themselves.
If the account is not kept running as described in sub-paragraph (2) of the scheme guideline, it is closed and the deposit plus interest, per paragraph 6, is paid out.
Should one or two joint holders die, the remaining holder(s) are recognised as the account's owner(s) and can either continue it under sub-paragraph (2) of the scheme guideline or close it under sub-paragraph (3).
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.