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Kisan Vikas Patra (KVP)
(Updated as per new rules from 01-Dec-2011)

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Features

Please note Kisan Vikas Patra has been discontinued by Govt. of India w.e.f. 01-Dec-2011. Below details are given for existing investors.

Returns

KVP Scheme doubles money in eight years and seven months.

Investment Limitation

Min Amount        Rs. 100/- and additional investment in multiples of Rs. 100/-.

Max Amount       No Limit

Denominations   Rs. 100/-, 500/-, 1,000/-, 10,000/-, 50,000/-.

Scheme Availability

All through the year.

Mode of Operation

  • Single
  • Joint (Two or more)
  • Minor with parent/guardian

Tenure of Investment

Money doubles in 8 years & 7 months.

 

 
 

Nomination

Facility is available at the time of opening the account or anytime during the tenure of the investment.

Premature Encashment

Premature encashment is permitted after 2.5 years from the date of investment. Lower interest accrued, if prematurely withdrawn.

Maturity

On providing proper identity and by simple discharge of the certificate on the reverse.

Loss of Certificate

If the loss is due to theft, fire or the certificate is mutilated, a duplicate certificate is issued after proper verification.

Tax Benefits

No Tax benefits are available for investments in this scheme under the Income Tax Act

Tips for Investing

  • A good investment instrument for all retired persons who would require the money at a later date and for those who do not have taxable income.

 

Terms

  

Denominations

The certificate is issued in denominations of Rs. 100/-, 500/-, 1,000/-, 5,000/-, 10,000/- & 50,000/- and any other denomination as may be announced by the Central Government.

Eligibility for KVPs

KVPs are issued to Individuals, Joint (two or more) and Minor with Parent/Guardian.
There is a further classification when the certificate is issued to Joint holders -
Type 'A' - maturity is payable to both the holders or the survivour.
Type 'B' - maturity is payable to either or survivor.

Purchase of Certificate

Any individual or including body corporate can purchase a KVP by applying to the Post Office through a representative or an agent. Payments can be made in cash, cheque or DD or by raising a debit in the savings account held by the purchaser in the Post Office.

Issue of Certificate

The issue of certificate will be subject to the realization of the cheque, payorder, DD. The date of the certificate will be the date of realization or encashment of the cheque. On request from the purchaser the Post Office will issue an identity slip along with the certificate. The identity slip shall be signed by the holder / holders and retained by them. This is to facilitate the purchaser to get a duplicate certificate from loss of the same and also to ensure a smooth encashment of the certificate on maturity.

Duplicate Certificate

A duplicate certificate is issued to the holder by the Post Office if he / she reports a loss of the certificate arising out of theft, mutilation, defacement. If the application is made to any other Post Office other than the issuing Post Office the Post Office will forward the application to the originating Post Office. The application will have the details of the certificate number, amount, date of purchase / maturity etc. and the circumstances resulting in the loss of the certificate. In such case the identity slip comes handy for a duplicate certificate. Upon satisfactory verification of the supportings the Post Office will issue a duplicate certificate. The holder will have to furnish an indemnity bond / declaration / bank verification on demand by the Post Office as a fulfillment condition for issue of a duplicate certificate.

Nomination

The single holder or joint holders of a certificate as the case may be, may, by filing in necessary particulars at the time of purchasing the certificate, nominate any person who, in the event of death of the single holder or both the joint holders, as the case may be, shall become entitled to the certificate and to the payment of amount due thereon. If such nomination is not made at the time of purchasing the certificate, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the purchase of the certificate but before its maturity, by means of an application to the Postmaster of the office at which the certificate stands registered. Only one nominee is allowed for a certificate which is below Rs.500. Nomination facility is not allowed for or on behalf of minor. A nomination made by the holder or holders of a certificate can be changed or cancelled by submitting an application affixing a revenue stamps of the value of Rs.1/- on every application made with the certificate to the postmaster of the Post Office at which the certificate was purchased. However a separate application for registering a nomination or cancellation must be made for certificates purchased on different dates. There is no fee for any nomination made for the first time. The nomination or the cancellation of a nomination or the variation of a nomination shall be effective from the date it is registered in the Post Office, which shall be noted on the certificate. If any nomination is not registered at the time of purchasing the certificate, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the purchase of the certificate but before its maturity, by means of an application to the Postmaster of the office at which the certificate stands registered. The clause that the money arising out of the maturity proceeds may be paid to the nominee mentioned in the certificate in the event of death of a single / joint holders or surviving joint holder has to be incorporated at the time of purchasing the certificate.

Encashment

KVPs are encashable only at the issuing Post Office. In the event of the certificate being presented for encashment at any other Post Office the paying Post Office will insist on the identity slip issued to the holder at the time of purchase which should be provided.

 

 

Transfer from one Post Office to another

A certificate may be transferred from one Post Office from where it was purchased to any other Post Office from the holder or holders by making an application in the form laid down by the Director General Posts at either of the two Post Offices. The application shall be signed by the holder or holders provided that in the case of joint type certificate, the application may be signed by one of the holders if the other is dead.

Transfer from one person to another

A certificate may be transferred from one person to another on consent in writing of an application to the officer of the Post Office as specified below -

  • The transfer of cases in which transfer can be sanctioned by Head Postmaster or Sub Postmaster of the Post Office where the certificate was issued.
  • From an employer to an employee on whose behalf it was purchased.
  • From a Co-operative Bank / Society, the Reserve Bank of India or a Scheduled Bank to its client / member or from a Gazetted Government Officer or from a local authority to a person or body or fund on whose behalf the certificate is held, when the certificate was not issued in the name of such person or body or fund.
  • From the name of a deceased holder to his heir.
  • From a holder to a court of law or to any other person under the orders of a court of law.
  • From a single holder to joint holders.
  • From joint holders to the name of one of the joint holders or surviving holder.

An authorised Postmaster shall give his consent to the transfer of a certificate only if the following conditions are satisfied, namely :

1.   The transfer of the certificate is effected after its completion of one year from the date of issue of the certificate or where the transfer is effected before this period.

2.   Transfer is to a natural relative or is out of natural love and affection.

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