Kisan Vikas Patra (KVP) 2023

Kisan Vikas Patra scheme is one of those saving avenues that help individuals accumulate wealth over time without harbouring a fear of any associated risk. Currently, it is one of the most popular savings schemes launched by the government of India that operates to mobilise savings and inculcate a healthy investment habit among individuals. 

To invest in the Indira Vikas Patra or Kisan Vikas Patra scheme, individuals are required to learn as much as possible about the said scheme and become familiar with its functioning to make the most out of it.

What is Kisan Vikas Patra?

The Kishan Vikas Patra scheme was launched in 1988 as a small saving certificate scheme. Its main objective was to encourage people to adopt long-term financial discipline. At the time of launch, this scheme was directed towards farmers and, therefore, the name. But today, anybody who fulfils its eligibility criteria can invest in it.

The Kisan Vikas Patra post office scheme comes with a preset tenure of 113 months and extends assured returns to the individuals. Anybody can avail it in the form of a certification from any branch of India Post Offices and selected public sector banks.

What Are The Types Of Kisan Vikas Patra Scheme Accounts?

The KVP Scheme accounts are of three types –

1. Single holder type – In such a type of account, a KVP certification is allotted to an adult. An adult can also avail of a certification on behalf of a minor, in such case the certification would be issued in their name. 
2. Joint A type – In such a type of account, a KVP certification is issued in the name of two individuals, both of whom are adults. In the event of maturity, both account holders would receive the payout. However, only one would be entitled to receive the same in the event of the death of one account holder.
3. Joint B type – In such a type of account, a KVP certification is issued in the name of two adult individuals. Unlike Joint A type accounts, on maturity, either of the two account holders or the survivor would receive the payout.

Eligibility Criteria For The Kisan Vikas Patra Scheme?

To avail the scheme’s benefits, individuals must meet the Kisan Vikas Patra 2023 eligibility criteria mentioned below – 

• Applicants must be residents of India.
• Applicants must be over the age of 18 years.
• Adults can apply on behalf of a minor.

Kisan Vikas Patra Online

Following is the process to invest in the Kisan Vikas Patra online scheme-

Step 1: Visit the post office and obtain the KVP application form i.e. Form-A, from the post office.

Step 2: Provide the relevant details on the form and submit.

Step 3: If the investment is being with the assistance of an agent, Form-A1 will be needed to be filled out and submitted.

Step 4: Provide a copy of any one of the identity proofs for the KYC procedure. 

The KVP Certificate will be issued after the documents are verified and the required deposits are completed. KVP Certificate can also be received via email on the registered email id.

The Benefits of KVP Scheme

The list mentioned below offers a brief idea about the same –

• Assured returns: Irrespective of market fluctuations, individuals who have put their money into this scheme would generate a guaranteed sum. The said feature encourages saving more.
  
  
• Compounding interest: The interest rate of the KVP Scheme tends to vary, and such variations depend on the year an individual had invested in it. The rate of interest for the financial year 2023-2024 is 7.5%. The interest accrued on the invested sum is compounded yearly, ensuring more returns to individuals.
  
  
• Time horizon: The time horizon of the Kisan Vikas Patra scheme is 113 months. After completing the said period, the scheme matures and extends a corpus to a KVP scheme holder. In case, individuals decide to withdraw the proceeds generated later than the maturity period; the amount would accrue interest until it is withdrawn.
  
  
• Cost of Investment: Individuals can deposit money into this scheme with as little as Rs. 1,000 and invest as much as they want to. However, the amount has to be a multiple of Rs. 1,000 and a sum over Rs. 50,000 would require PAN details and would be extended by a city’s head post office. 

• Taxation method: An amount that is withdrawn post maturity is exempted from Tax Deducted at Source or TDS. However, the KVP scheme is not entitled to any tax deductions mentioned under Section 80C.

• Nomination: Individuals can select a nominee in this scheme. All they would need to do is fill up a nomination form, offer the required details of their choice of nominees and submit it. Also, Individuals can even select a minor as their nominee. 

• Loan against a certificate: Individuals can avail a loan against their investment in Kisan Vikas Patra scheme. The KVP certificate would act as collateral while applying for a secured loan and individuals would be able to avail a loan at a lower interest rate.

Documents Required For Availing A Kisan Vikas Patra 2023

Eligible individuals can avail the scheme Kisan Vikas Patra in 2023 by offering the required documents.

Here is a list of documents that are deemed necessary for the same –

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

On providing these documents mentioned above, applicants would be offered a KVP certificate. In the event of loss or damage of Indira Vikas Patra or Kisan Vikas Patra certification, individuals can apply for a copy of the same. Such an application can be made through the institution where the certification was availed in the first instance. 

Premature Withdrawal 

Individuals can withdraw their proceeds either on maturity or before maturity. If an individual opts to withdraw their investment sum within a year of purchase, they will not accrue any interest on it. Moreover, they would incur a penalty for it.

Nomination

Certificate holders, whether single or joint, can make a nomination by filling out Form C at the time of purchase. You may nominate anyone so that the nominee will be eligible for the certificate’s benefits in the case of the death of the sole holder or both joint holders.

If the nomination is not made at the time of purchase, the single holder, joint holders, or surviving joint holder can make a nomination at any time after the certificate is purchased but before it matures by completing the duly completed Form C. Submit it to the postal or bank person who registered the certificate.

Nominations may be made, however, if the certificate is applied for and held by or on behalf of a minor. If the holder or holders of the certificate make a nomination in this situation, the nomination will be cancelled or revised using Form D.

Kisan Vikas Patra Encashment

To encash a Kisan Vikas Patra Certificate, it can be availed at the same Post office where the KVP was provided. If you need to encash KVP at another post office, certain formalities will be required to be done.

To encash a KVP, submit the identity slip that was given at the time of issue of the KVP certificate. For encashing a KVP certificate, provide a letter in writing to the concerned post office along with the identity slip too.

If you want to pull out the principal before the maturity time, note that it can be done only after 2 years and 6 months.

KVP can also be prematurely encashed before its maturity but only under the below-mentioned circumstances-

• On forfeiture by a pledge or by a Gazetted Officer
• Upon the death of the Kisan Vikas Patra holder/any of the holders if there are joint KVPs
• If ordered by a Court of law

How to Transfer Kisan Vikas Patra Account?

For transferring the Kisan Vikas Patra certificate from one person to another or one Post Office to the other, follow the below-mentioned ways-

• Transfer from One Person to Another

To transfer the KVP certificate from one person to another, a written letter is required to be submitted to the Post Office. The following circumstances would apply for the same-

• From one owner to the combined owners
• From combined owners to the name of one of the owners
• Transfer from the name of the deceased to his or her heir
• From the owner to a judge of law and also to other individuals as ordered by a Law Court

• Transfer from One Post Office to Another

The KVP certificate can be transferred from one post office, from where it was originally received to another post office.

To transfer a Kisan Vikas Patra certificate, the individual must submit a handwritten consent to the officer at the post office in concern. Note, the transferee must be a resident Indian and must hold the eligibility to purchase the Kisan Vikas Patra certificates.