Kisan Vikas Patra (KVP)

Kisan Vikas Patra is a saving scheme that was announced by the Government of India that doubles the money invested in eight years and four months. The Directorate of Small Savings Government of India, sells these saving bonds through all Post Offices in the country so that the scheme can be accessed by citizens from all over the country. A KVP can be encashed after two and a half years from the date of issue at the value it has been bought and the interest accrued for the period.

Salient features of the new KVP

Interest: 8.7 per cent. Tenure: eight years and four months (100 months). Investment doubles in 100 months. Minimum lock-in period two years and six months.

Liquidity

Can be encashed in eight equal monthly instalments after the lock-in period Can be transferred to another person by endorsement and delivery Can also be given as collateral for loans by banks Minimum investment Rs.1,000. Thereafter, in denominations of Rs.5,000, Rs.10,000 and Rs.50,000. There is no maximum limit.

Taxability: fully taxable

 Mode of investment: Cash or Cheque

Know your customer (KYC) norms: PAN not required but identity/address proof required.

Will be sold initially through post offices across the country, but later through some government-owned banks also.


 

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