Kisan Vikas Patra Scheme

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.

Here are the key highlights of this savings scheme: 

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.

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

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.

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

• 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

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

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

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.

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.