Kisan Vikas Patra (KVP) 2024: Interest Rate, Features, Eligibility

Kisan Vikas Patra scheme was launched as a small savings certificate program to encourage people to develop discipline and long-term financial planning. The Kisan Vikas Patra scheme is one of those ways to save money that allows people to gradually develop wealth without worrying about the risks involved. With a fixed duration of 115 months, this post office scheme offers investors assured returns. A certificate for the scheme can be obtained from any India Post Office branch or certain public sector banks. Read the article below to learn more about Kisan Vikas Patra.

Kisan Vikas Patra

What is Kisan Vikas Patra 2024

The program’s name indicated that farmers were its first target audience. But anyone who satisfies the prerequisites can invest in the scheme right now. It is now one of the most well-liked savings plans introduced by the Indian government, which aims to encourage people to save money and develop sound investment habits. To get the most out of investing in the Indira Vikas Patra or Kisan Vikas Patra schemes, people must educate themselves as much as possible on the schemes in question.

Rashtriya Krishi Vikas Yojana

KVP Scheme Details in Highlights

Name of the schemeKisan Vikas Patra
Launched in1988
Objectiveto encourage people to save money and develop a sound investment habit
Modeonline
Tenure115 months
Investment AmountMinimum: Rs.1,000
Interest Rate7.5%
Tax Benefits  You can avail tax benefits under Section 80C of the Income Tax Act, 1961
MaximumNo Upper Limit

Objectives of Kisan Vikas Patra

Encouraging people to acquire long-term financial discipline was its principal goal. The name of this program came about since, at the time of its debut, it was intended primarily for farmers. However, anyone who meets its eligibility requirements can now invest in it.  The Kisan Vikas Patra post office system offers guaranteed returns to individuals and has a predetermined tenure of 113 months. It is available to everyone in the form of a certification from specific public sector banks and any India Post Office.

Features of Kisan Vikas Patra

Some of the key features of Kisan Vikas Patra are mentioned below:

  • The Indian Post Office offers a certificate program called Kisan Vikas Patra. It takes about 9.5 years (115 months) to double a one-time investment. For example, you will receive a corpus of Rs. 10,000 upon maturity if you purchase a Kisan Vikas Patra for Rs. 5,000.
  • There is no maximum investment amount; the minimum is Rs. 1,000.
  • Additionally, after the 115th month, you can receive twice as much if you invest a lump sum amount now.
  • The name comes from the fact that its original purpose was to help farmers store money for the future. It is now accessible to everyone.
  • The government mandated PAN card proof for investments above Rs. 50,000 in 2014 to thwart the potential for money laundering. You must provide proof of income (pay slips, bank statements, ITR paperwork, etc.) to deposit more than Rs. 10 lakh.
  • In addition, the Aadhaar number must be provided as verification of the account holder’s identity.

Government Schemes for Farmers

Benefits of Kisan Vikas Patra

The benefits of Kisan Vikas Patra are mentioned below:

  • Assured Returns: Participants in this program would get a certain amount of money, regardless of market volatility. The mentioned feature promotes increased savings.
  • You can deposit money on this low-risk savings site and leave it there for a predetermined amount of time.
  • Compound Interest: The KVP Scheme’s interest rate is subject to change based on the year a person invested in it. For the fiscal year 2023–2024, the interest rate is 7.5%. Because the interest on the invested amount is compounded year, investors will receive higher returns.
  • Cost of Investment: Participants in this scheme may contribute as much or as little as Rs. 1,000 at a time. The amount must, however, be greater than Rs. 1,000, and any amount beyond Rs. 50,000 will need to be extended by the head post office in the city and would require PAN information.
  • Time frame Horizon: The Kisan Vikas Patra scheme has a 113-month temporal horizon. A KVP scheme holder receives a corpus when the plan matures and has completed the specified duration. If people choose to take out the proceeds earned after the maturity term, interest will be charged on the amount until it is taken out.
  • Taxation Method: If money is withdrawn after maturity, Tax Deducted at Source (TDS) is not applied. Nevertheless, the KVP plan is not eligible for any of the Section 80C tax deductions.
  • Nomination: Under this arrangement, anyone may choose a nominee. All they would have to do is complete a nomination form, include the necessary information about the nominees they have selected, and send it in. Individuals may even choose to nominate a juvenile.
Documents Required

Following are the documents required for Kisan Vikas Patra

  • Form A must be duly submitted to an India Post Office branch or other specific banks.
  • KYC documents like Aadhaar Card, PAN card, Passport, Voter’s ID, Driving License, etc. serve as ID proof.
  • Form A1, if the application is extended through an agent.

Upon presenting the aforementioned documents, candidates will receive a KVP certificate. People can ask for a copy of their Indira Vikas Patra or Kisan Vikas Patra certification if it is lost or damaged. The organization where the certification was originally obtained may handle such an application.

PM Kisan Sampada Yojana

Eligibility Criteria for Kisan Vikas Patra

Before applying for Kisan Vikas Patra, make sure you fulfill all the eligibility criteria mentioned below:

  • The candidate needs to be an adult Indian resident.
  • Trusts may contribute to Kisan Vikas Patra. Investment in KVP is not permitted for NRIs or Hindu Undivided Families (HUFs).
  • The candidate needs to be older than eighteen.
  • Either the applicant or a juvenile on their behalf may apply for Kisan Vikas Patra.

How to Get Kisan Vikas Patra 2024 Online

Investing in the online Kisan Vikas Patra scheme is an easy process. You can take the following actions:

  • Open your online banking or visit the India Post website.
  • Download the KVP Form A and select Kisan Vikas Patra (KVP).
  • Fill out the form with your details, including the kind of certificate, the amount to be invested, and the mode of payment.
  • Fill out the nomination form and send it to the bank or post office with the KYC paperwork.
  • Following the verification of the documents, deposit the money with cash, a cheque written locally, a pay order, or a demand draft made payable to the postmaster.
  • If payment is not made by demand draft, pay order, or check, you will promptly receive a KVP certificate. Asking the executives to email you the certificate is an option.

Get Kisan Vikas Patra Offline

The following are the methods to obtain a KVP certificate offline

  • Get Form-A, the KVP application form, by going to the closest post office.
  • After providing the required information, submit the completed form.
  • If you are investing with the assistance of an agent, complete and submit Form-A1.
  • Provide a copy of any identification that the KYC procedure requires.
  • You will receive the KVP Certificate after the required deposits have been made and the documents have been verified. Alternatively, you can opt to receive the KVP certificate via the email address you registered.

Different Types of Accounts for Kisan Vikas Patra Scheme

There are three different types of KVP Scheme accounts:

  • Single Holder Type

An adult is assigned a KVP certification in this kind of account. A certification may also be obtained by an adult on behalf of a juvenile; in this instance, the certification will be issued under their name.

  • Joint A Type

A KVP certification is granted in the names of two adult individuals in this kind of account. Both account holders would get the payoff in the case of maturity. However, in the case that one account holder passed away, just that one would be eligible to receive the same.

  • Joint B Type

A KVP certification is granted in the names of two adults for this kind of account. In contrast to Joint A type accounts, the payoff would be made to the survivor or one of the two account holders upon maturity.

Premature Withdrawal From KVP

The account matures after 115 months, however the Kisan Vikas Patra withdrawal guidelines state that the lock-in period is 30 months, or two years and six months. Early withdrawal from the plan is not permitted unless the account holder passes away or a court order is obtained.

Nomination in Kisan Vikas Patra

Certificate holders may nominate someone by completing Form C at the time of purchase, regardless of whether they are single or married. You may designate any individual to receive benefits from the certificate in the event that the lone holder or both joint holders pass away.

The sole holder, joint holder, or surviving joint holder may nominate someone at any point after the certificate is acquired but before it matures by filling out the appropriately completed Form C. If the nomination is not made at the time of purchase. Send it to the bank or postal worker who handled the certificate’s registration.

On the other hand, if a minor applies for and is granted the certificate, nominations may be made on their behalf. In this case, any nomination made by the certificate holder or holders will be revoked or amended using Form D.

FAQ’s
My KVPs are missing. What is the process for getting a duplicate certificate?

Write to the Post Office of KVP issue and enclose the identity slip that was given at the time of issue in order to receive a duplicate KVP certificate. You can show that you own KVPs with the identity slip. For more information, please get in touch with the Post Office where your identity slip was issued if you have misplaced or lost it.

Is investing in Kisan Vikas Patra (KVP) permitted for cooperative banks and societies?

Investments in Kisan Vikas Patra (KVP) are not allowed for cooperative societies or cooperative banks.

What is KVP’s interest rate right now?

Currently, the first quarter of FY 2023–2024 will have an interest rate of 7.5% on this programme.

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