FM to Relaunch Kisan Vikas Patra (KVP); Available to the Investors in the Denomination of Rs. 1000, 5000, 10,000 and 50,000, with no Upper Ceiling on Investment; Investment made in the KVP will Double in 100 Months .
Tomorrow in the presence of Shri Jayant Sinha, Minister for Finance among others and Shri Ravi Shankar Prasad, Union Minister of Communication and IT, here the Shri Arun Jaitley, Union Finance Minister Will re-launch the Kisan Vikas Patra (KVP). On assuming charge in the economy increasing savings rate was one of the priorities of the new Government. To revitalize small savings and in view of the popular demands, in para 27 of his budget speech the Finance Minister announced that among small savers “Kisan Vikas Patra (KVP) a very popular instrument will be reintroduced. Those people who may have banked and unbanked savings to invest the instrument will encourage them. Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). Regarding all National Savings Schemes (NSS), KYC norms are now applicable in banks and post offices w.e.f January, 2012.
With no upper ceiling on investment to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, the re-launched Kisan Vikas Patra (KVP) will be available. In single or joint name the certificates can be issued and multiple times, from one person to another person/ persons can be transferred. Anywhere in India from one posts office to another the facility of transfer and will be available of nomination. From the bank to avail loan as security the certificate can also be pledge and in other case to be deposited where security is required. Initially through the post office the certificates will be sold but through designated branches of nationalised bank the same will soon be made available to the investing public.
Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desire, after the lock-in period of 2 years and 6 months encash his certificates and thereafter on pre-determined maturity value in any block of six months. In the certificate, in 100 months, the investment made will double.
The reintroduction of Kisan Vikas Patra (KVP) is welcome step not only in the direction of providing safe and secure investment avenues to the small investors but will also help in augmenting the saving rates in the country. From fraudulent schemes the scheme will also safeguard small investors with a maturity period of 8 years 4 months. Under the scheme the collection will be available with the Govt. For a fairly long period to be utilized in financing development plans of the centre and state government and will also help in enhancing domestic household financial saving in the country.
Kisan Vikas Patra (KVP) – on 1st Aril 1988, by the Government a certificate savings scheme was launched. By way of purchase of certificates the scheme provided facility of unlimited investment from post offices in various denominations. When the scheme was launched, the maturity period of the scheme was 5.5 years at the time of the scheme was launched and on maturity the money invested double. Among the investors the scheme was very popular and the percentage share of gross collections secured in KV was in the range of 9% to 29% against the total collections received under all National Savings Schemes in the country. In the year 2010-11 under the scheme the gross collection were Rs. 21631.14 crores which were during the year 9% of the total gross collection. The scheme secured gross collection in the year of Rs. 7575.95 crores (April 2011 to November 2011), in the year of its closure.