Kisan Vikas Patra
(KVP)
Investment double in 100 months
Investment double in 100 months
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).