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
The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of Communication and IT and Shri Jayant Sinha, Minister of State for Finance among others. Increasing savings rate in the economy was one of the priorities of the new Government on assuming charge. In view of the popular demand and to revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech announced that “Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest”. Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.
The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The 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. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks.
Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months.
Reintroduction of Kisan Vikas Patra (KVP) is a 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 savings rate in the country. The scheme will also safeguard small investors from fraudulent schemes. With a maturity period of 8 years 4 months, the collections under the scheme will be available with the Govt. for a fairly long period to be utilized in financing developmental plans of the Centre and State Governments and will also help in enhancing domestic household financial savings in the country.
Kisan Vikas Patra (KVP) – a certificate savings scheme was launched by the Government on 1st April, 1988. The scheme provided facility of unlimited investment by way of purchase of certificates from post offices in various denominations. The maturity period of the scheme when launched was 5 ½ years and the money invested doubled on maturity. The scheme was very popular among the investors and the percentage share of gross collections secured in KVP was in the range of 9 % to 29 % against the total collections received under all National Savings Schemes in the country. Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was 9 % of the total gross collections during the year. In the year of its closure, the scheme secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011). Source- PIB
Whetehr tax exemption is available or not nd one thing more at the time of redemption whether TDS is deducted or not .
Dear Anil Gupta,
is the Bank FD given the option of Money double in 100 Months ? Which Banks ? Kindly let me Know interested to Invest.
Very Good. Invest in Kishan Vikash Patra to be double of Money in 100 Months
without market risk is good proposal. Govt. Should start early at Post Offices.
Post offices are still struggling with customers and paper work.Each post office has its own aroma within a single circle!Having experienced the most inefficient postal savings system I have decided to with draw all my connection with the Indian Posts and park in private companies.Indian Post needs immediate modernisation. Just having P C terminals is nothing for a country like India where people have duplicate Pan numbers and perhaps Duplicate Aadhar numbers also!The system can be rated on scale of rotten to average especially in a metro like TN.
Very good! It was foolish of UPA Govt to abolish the scheme saying it encouraged black money!! What about their multibillion dollar scams and revelations and reluctance on money stashed abroad? Great hypocrites politicians seem to be to likeminded conscientious public, the common men!
Sir
What will be fate of cash transaction above 50000 , will cash be paid back above 50000/
PAN no will be desired
There is So Many option as Bank FD for Five years which give more than 9% PA Interest & as well as Income Tax Exemption U/S 80C , Why We Should go to Invest in KISSAN VIKAS PATRA for more than 8.4 years without Tax Exemption.?