Kisan Vikas Patra Scheme, 2019 – Detailed analysis

Government has notified new Kisan Vikas Patra Scheme, 2019 w.e.f. 12th December, 2019 vide notification No. G.S.R. 920(E). This article covered topics related to  Type of accounts under Kisan Vikas Patra Scheme, 2019, Deposits under Kisan Vikas Patra Scheme, 2019 Payment on maturity under Kisan Vikas Patra Scheme, Premature closure of account, Pledging of account, Transfer of account under Kisan Vikas Patra Scheme, 2019,  Payment on the death of account holder , Application for opening an account under Kisan Vikas Patra Scheme, 2019, FORM – 2 Application for closure of Kisan Vikas Patra Scheme account, FORM – 3 Application for premature closure of Kisan Vikas Patra Scheme account and FORM – 4 Application for pledging of Kisan Vikas Patra Scheme account.

A. Analysis of Kisan Vikas Patra Scheme, 2019

1. Type of accounts under Kisan Vikas Patra Scheme, 2019

(1) On an application to the accounts office in Form-1, the following types of accounts can be opened under the Scheme, namely :-

(a) Single Holder Type Account;

(b) Joint A- Type Account; and

(c) Joint B- Type Account.

(2) Account type wise details are as under:

(a) A Single Holder Type Account:

It may be opened by an adult for himself, or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years;

(b) Joint A-Type Account

It may be opened jointly in the names of upto three adults payable to all the account holders jointly or to the survivors;

(c) Joint B-Type Account

It may be opened jointly in the name of upto three adults payable to any of the account holders or to the survivor or survivors.

2. Deposits under Kisan Vikas Patra Scheme, 2019

(1) A minimum of one thousand rupees and any sum in multiples of one hundred rupees may be deposited in an account.

(2) There shall be no maximum limit for deposit in an account or in accounts held by an account holder.

(3) An individual may open any number of accounts.

3. Payment on maturity under Kisan Vikas Patra Scheme, 2019

(1) Deposits made in the account shall double on maturity. Maturity period of an account shall be nine years and five months commencing on the date of deposit. Amount of maturity may be repaid to the account holder on an application in Form-2 submitted to the accounts office.

(2) The maturity period of the deposit under this Scheme shall be determined on the rate of interest applicable at the time of opening the account.

4. Premature closure of account under Kisan Vikas Patra Scheme, 2019

(1) The account may be prematurely closed by the account holder by making an application in Form-3 to the accounts office, at any time before maturity under the following circumstances:

(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;

(b) on forfeiture by a pledgee, being a Gazetted Officer;

(c) when ordered by a court.

(2) On the closure of the account as mentioned above, principal amount alongwith simple interest calculated at the rate applicable from time to time to Post Office Savings Account for the complete months for which the account has been held, shall be payable.

(3) If an account is closed any time after the expiry of two years and six months from the date of opening of the account, the amount, inclusive of interest shall be payable as specified in the table below:

(Table showing premature closure value of account opened on or after date of notification with 1,000 rupees)

TABLE

Period from the date of the account to the date of its pre-mature closure	Amount payable inclusive of interest (Rupees)
(1)	(2)
Two and half years but less than three years	1173
Three years but less than three and half years	1211
Three and half years but less than four years	1251
Four years but less than four and half years	1291
Four and half years but less than five years	1333
Five years but less than five and half years	1377
Five and half years but less than six years	1421
Six years but less than six and half years	1467
Six and half years but less than seven years	1515
Seven years but less than seven and half years	1564
Seven and half years but less than eight years	1615
Eight years but less than eight and half years	1667
Eight and half years but less than nine years	1722
Nine years but before Maturity of Certificate	1778
On maturity of certificate	2000

5. Pledging of account under Kisan Vikas Patra Scheme, 2019

(1) An account may be pledged or transferred as security, on an application made by the depositor in Form-4 supported with acceptance letter from the pledgee.

(2) Transfer of an account under this Scheme may be made to-

(a) the President of India or the Governor of a State in his official capacity;

(b) the Reserve Bank of India or a Scheduled Bank or a Cooperative Society, including a Co-operative Bank;

(c) a public or private corporation or a Government company;

(d) a local authority; or

(e) a housing finance company approved by the National Housing Bank and notified by the Central Government:

Please note that the transfer of an account opened on behalf of a minor or a person of unsound mind shall not be permitted under this Scheme unless the guardian of the minor or the person of unsound mind, as the case may be, certifies in writing that the minor or the person of unsound mind, as the case may be, is alive and that the transfer is for the benefit of the minor or the person of unsound mind.

(3) When any account is transferred as security, the authorised officer shall make the following endorsement in the record of the Account, including the Savings Certificate.

(4) Except as otherwise provided in this Scheme, the transferee of an account shall, until it is re-transferred back be deemed to be the depositor.

(5) An account transferred under this Scheme may, on written authority of the transferee, be re-transferred back with the previous sanction in writing of the authorised officer and when any such retransfer is made, the authorised officer of the accounts office shall make the following endorsement in the record of the account, including certificate.

(6) A blind person or a person with physical infirmity making him incapable of operating the account may pledge his deposit through any literate individual whom he authorises for this purpose.

6. Transfer of account under Kisan Vikas Patra Scheme, 2019

An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the following cases:

(i) on the death of the account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees, as the case may be;

(ii) on the order of the court, the account shall be transferred from the account holder to the court or to any other individual as per the orders of the court;

(i) on pledging, account shall be transferred in accordance with paragraph 7;

(ii) in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holders, as the case may be.

7. Payment on the death of account holder under Kisan Vikas Patra Scheme, 2019

(1) In the event of death of the depositor of a single account or of all the depositors in a joint account, the deposit shall be payable to the nominee if a nomination exists or to the legal heir(s).

(2) Where there are not more than three surviving nominees or legal heirs, they may, at their option continue the account and receive the amount of deposit along with interest on maturity in the manner provided for in this scheme, as if they had opened the account themselves.

(3) Where the account is not continued it shall be closed and the amount of deposit along with interest as provided shall be repaid.

(4) On the death of one or two of the account holders in a joint account, the surviving account holder or holders, if any, shall be treated as the owner or owners of the account and such account holder or holders may continue the account or close the account.

8. Application of General Rules under under Kisan Vikas Patra Scheme, 2019

The provisions of the General Rules shall, so far as may be, apply to this Scheme in relation to the matters for which no provisions have been made herein.

9. Power to relax under Kisan Vikas Patra Scheme, 2019

Where the Central Government is satisfied that the operation of any of the provisions of this Scheme causes undue hardship to the amount holder, it may be by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act or the rules made there under.

B. Summary of Forms under Kisan Vikas Patra Scheme, 2019

FORM – 1 Application for opening an account under Kisan Vikas Patra Scheme, 2019

Following details need to be mentioned in this Form:

a) Photograph

b) Name of Applicant

c) Name of First depositor

d) Name of Second Depositor

e) Name of Third Depositor

f) Total initial deposit

g) PAN

h) Adhaar Number

i) Address

j) Contact Details

k) KYC details

l) Nominee details

FORM – 2 Application for closure of Kisan Vikas Patra Scheme account

Following details need to be mentioned in this Form:

a) Name of Applicant

b) Account Number

c) Date of Maturity

FORM – 3 Application for premature closure of Kisan Vikas Patra Scheme account

Following details need to be mentioned in this Form:

a) Name of Applicant

b) Account Number

FORM – 4 Application for pledging of Kisan Vikas Patra Scheme account

Following details need to be mentioned in this Form:

a) Name of Applicant

b) Account Number

c) Amount of Deposit as a security

d) Official designation of the officer or name of the branch to whom the account is being pledged as security