The Kisan Vikas Patra (KVP) scheme, offered by India Post, caters specifically to the investment needs of individuals from rural backgrounds. This government-backed program fosters financial security by providing attractive returns on deposits over a fixed investment term. Known for its simplicity and guaranteed returns, KVP serves as a reliable savings tool for those seeking to grow their wealth steadily.

Key Features

Here are the key highlights of this savings scheme: 

Particulars

Details

Maturity period

115 months

Minimum amount

₹1,000

Interest rate

7.50% per annum

Premature withdrawal

Only after 2.5 years

Tax implications

Investment in KVP yojana qualifies for tax deduction under Section 80C of the Income Tax Act, 1961

Transferability

Can be transferred from one person to another and from one post office to another

Disclaimer: The interest rate mentioned in the table is subject to change at the government’s discretion. 

 

Interest Rates

The interest rates for Kisan Vikas Patra are set by the government and are subject to change. At present, the interest rate for KVP stands at 7.50% p.a.

History of KVP Interest Rates

The table below shows the history of KVP rates since the re-launch of the scheme in 2014.

Year

Rate of Interest (p.a.)

April 2023 to June 2023

7.50%

January 2023 to March 2023

7.20%

October 2022 to December 2022

7.00%

April 2022 to September 2022

6.90%

July 2019 to March 2022

7.60%

October 2018 to June 2019

7.70%

January 2018 to September 2018

7.30%

July 2017 to December 2017

7.50%

April 2017 to June 2023

7.60%

October 2016 to March 2017

7.70%

April 2016 to September 2017

7.80%

September 2014 to March 2016

8.70%

How to Invest in Kisan Vikas Patra

This Post Office Saving Scheme is not available on Bajaj Markets. Follow the steps given below to invest in the Kisan Vikas Patra online and offline:

Online Methods

  1. Visit your local post office and inquire about enabling e-banking and mobile banking for your account

  2. Visit the official e-banking website once approved

  3. Complete the registration process using the activation code received within 48 hours

  4. Look for the "New User Activation" option and proceed with registration

 

Once complete, you should be able to initiate your KVP investment online.

Offline Methods

  1. Head to your nearest post office to initiate the process

  2. Ensure you have all the required documents (identity proof, address proof, etc.) available

  3. Inform the staff of your intention to invest in Kisan Vikas Patra

  4. Carefully complete the application form provided by the Post Office

  5. Double-check the filled form, attach your documents, and submit it to the Post Office staff for processing

 

Choose the method that best suits your needs and enjoy the benefits of investing in KVP.

Eligibility Criteria

Here’s a list of those who can invest in the KVP scheme:

  • An 18-year-old adult

  • Up to 3 individuals (joint account)

  • A guardian (for a minor)

  • A minor above the age of 10 years

Kisan Vikas Patra Scheme Types

  • Single Holder Certificate: Issued to an individual for self or on behalf of a minor

  • A Type Joint Certificate: Issued to two individuals jointly and is payable to both adults or the survivor

  • B Type Joint Certificate: Issued jointly to two individuals but the amount is payable to either of the owners or the survivor

How to Encash Kisan Vikas Patra Certificate

In case you want to encash or disburse your KVP certificate, you need to visit the Post Office that issued your KVP. However, if you wish to do so at a different Post Office, you may have to go through a few formalities.

 

Here’s how you can encash your KVP certificate:

  • Submit your identity slip provided when acquiring the certificate

  • Send a letter with the identity slip to the Post Office

 

Note: If you wish to withdraw your money before the Kisan Vikas Patra maturity period, you can do so only after 2.5 years.

 

You can also encash your KVP certificate prematurely under the following circumstances:

  • It has been ordered by a Court of law

  • On forfeiture by a Gazetted Officer or pledge

  • In the case of the demise of the KVP holder or any one of the holders

How to Transfer Your Kisan Vikas Patra Account

1. Transfer from One Post Office to Another

To transfer your KVP certificate from one Post Office to another, you must submit a handwritten consent to the officer. Additionally, you must note that the transferee must meet the eligibility criteria.

2. Transfer from a Person to Another

You must submit a written letter to the Post Office to transfer the KVP certificate from a person to another. However, you can do so only under the following conditions:

  • If the KVP certificate is being transferred from the deceased to his/her legal heir

  • From single ownership to joint ownership

  • From joint ownership to single ownership

  • From the owner to an individual as per the court's order or judge of law

Loan Against KVP

If you have a KVP certificate, you can pledge it as collateral to seek a loan from banks. However, you can apply for a loan against KVP only under the following conditions:

  • You must have a KVP certificate under your name

  • This feature is available for business or personal purposes only

  • The loan must be repaid within your KVP tenor

 

While the Kisan Vikas Patra Scheme seems like a great investment option for risk-averse investors, you must also check out fixed deposits. Like KVP, it features assured returns and loans against FD.

Nomination in KVP Certificate

Here are a few key aspects that you would like to know about nomination in KVP:

  • An individual or joint holder of the certificate may apply for nomination by submitting Form C with the required information at the time of purchase. If the certificate's sole holder or both joint holders pass away, you can name anyone to receive the certificate’s benefits.

  • If the nominations are not made during the purchase, they can be added at any time before maturity by the surviving holder/s presenting Form C. It should be given to the postal or bank in which the certificate is recorded.

  • Nomination cannot be made if the certificate is being held by, was acquired, or is on a minor’s behalf. In this case, if the certificate holder/s makes a nomination, it will be modified or cancelled using the D Form.

  • If you have numerous certificates registered on various dates, you must submit a separate application for each nomination, cancellation, or variation. Such a request will be noted on the certificate and become effective as of the registration date.

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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Frequently Asked Questions

What is the minimum investment amount for the Kisan Vikas Patra Scheme?

The minimum investment amount for the KVP scheme is ₹1000.

Can I transfer my KVP from the post office to the bank?

You may transfer your certificate from one bank or post office to another. All you must do is place a formal request at your bank or post office. Request for Form B for individual accounts. In the case of joint A-type certificates, one joint account holder will be able to sign the application if the other is deceased.

Can a Kisan Vikas Patra certificate be transferred to another person?

With the permission of a bank or post office officer, a KVP certificate could be transferred from one individual to another under the following circumstances:

  • To the heir of a deceased individual

  • To one of the joint holders

  • Where the transferee is one, from the names of sole holders to those of joint holders

  • From a single/joint holder to a different individual.

  • From the holder to anybody the court of law designates or the court of law itself.

How can I invest in the Kisan Vikas Patra Scheme online?

You may head to the post office closest to you. Place a request for online banking. Once you have that approval, you may visit the official Post Office Savings Scheme website or download the mobile application to initiate the journey.

Who can invest in the Kisan Vikas Patra Scheme?

The following can consider this investment option:

  • Long-term investors

  • Individuals seeking a regular source of income

  • Investors looking for tax benefits

  • Individuals who prefer government-backed investments

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