In view of popular demand, the government will on Tuesday relaunch saving instrument Kisan Vikas Patra (KVP), wherein the invested money will get doubled in 8 years and 4 months.
The KVP will not only provide safe and secure investment avenues to the small investors but will also help in augmenting the savings rate in the country. The scheme will also safeguard small investors from fraudulent schemes.
Features of Govt relaunches Kisan Vikas Patra investment scheme:
- The amount invested in Kisan Vikas Patra would get doubled in 100 months or eight years and four months. This means KVPs would be giving a return of 8.7 per cent annually.
- However, investors would not get any tax benefit for their investment in Kisan Vikas Patra unlike in PPF.
- The Kisan Vikas Patra certificates would be available in the denominations of Rs 1,000, 5,000, 10,000 and 50,000 and there is no upper limit on investment in KVPs.
- Kisan Vikas Patra certificates can be en-cashed after a lock-in period of 30 months or 2 years and 6 months. Thereafter, investors can withdraw in any block of six months.
Kisan Vikas Patra certificates can be issued in single or joint names and can be transferred from one person to any other person/persons, multiple times.
- The facility of transfer from one post office to another anywhere in India and of nomination will be available.
- Kisan Vikas Patra certificates can also be pledged as security to avail loans from the banks.
- Initially, the Kisan Vikas Patra certificates will be sold through post offices, but later on they will be made available to the through designated branches of nationalized banks.
- Kisan Vikas Patra savings scheme was originally launched in 1988. The maturity period of the scheme when launched was five and half years and the monthly invested doubled on maturity.