Kisan Vikas Patra is a certificate scheme offered by the Indian post office, designed to help investors double their one-time investment within a period of around 10 years (120 months). Explore the benefits and opportunities provided by the Kisan Vikas Patra scheme to make informed investment decisions.
Kisan Vikas Patra is a popular savings scheme in India that helps individuals accumulate wealth without taking on any significant risks. Launched by the government, it aims to promote savings and cultivate healthy investment habits among people. To make the most of this scheme, individuals should familiarise themselves with its functioning before investing.
Originally introduced in 1988 as a small saving certificate scheme, Kisan Vikas Patra aimed to instil long-term financial discipline primarily among farmers, hence the name. However, nowadays, anyone who meets the eligibility criteria can invest in it. With a fixed tenure of 113 months, the scheme provides assured returns and can be obtained as a certification from India Post Offices and select public sector banks.
Types of Certificates Available
- Single Holder Type Certificate: An adult may receive a certificate in their own name, on behalf of a minor, or for themselves.
- Joint ‘A’ Type Certificate: This kind of certificate is issued jointly to two adults and is payable to both of the holders jointly or to the survivor.
- Joint ‘B’ form Certificate: This form of certificate is given to two people jointly and is payable to either of the holders or the survivor.
Eligibility to apply for Kisan Vikas Patra
- The candidate needs to be an Indian national.
- The candidate must be older than 18 years old.
- A grownup may submit an application on behalf of a child or someone who is mentally ill.
- Non-Resident Indians (NRIs) and Hindu Undivided Families (HUF) are ineligible to invest in KVP
Who Should Invest in the Kisan Vikas Patra Scheme?
A Kisan Vikas Patra (KVP) is available at local post offices and can be purchased by any Indian citizen aged 18 and above. It is particularly appealing to rural individuals without bank accounts. Joint ownership with another adult or for a minor is possible, requiring the minor’s birthdate and the parent/guardian’s name. However, HUFs and NRIs are ineligible, while Trusts may purchase KVPs. It serves as a viable option for risk-averse individuals with surplus funds, considering their risk tolerance and objectives. Those seeking tax savings have superior alternatives like Public Provident Funds, National Savings Certificates, and tax-saving bank FD schemes.
Features and Benefits of Kisan Vikas Patra
- Kisan Vikas Patra (KVP) is a savings scheme available at Indian post offices.
- It offers a safe and secure investment option for individuals.
- KVP helps in accumulating wealth over time without significant risks.
- It can be purchased by Indian citizens aged 18 and above.
- People from rural areas without bank accounts find KVP appealing.
- Joint ownership is possible with another adult or for a minor.
- KVP provides assured returns and has a fixed tenure.
- It is not available for HUFs or NRIs, but Trusts can invest.
- KVP is suitable for risk-averse individuals with surplus funds.
- Tax-saving options like Public Provident Fund and National Savings Certificates are alternatives to consider.
Kisan Vikas Patra Interest Rate (KVP Interest Rate) 2023
As of 2023, the KVP Interest Rate is 7.5% annually. The interest rates are reviewed quarterly by the Indian Government, so it’s always advisable to check the latest rates before making an investment.
History of KVP Interest Rates
The Kisan Vikas Patra Interest Rates have varied over the years:
| Quarter/Financial Year | 2016-2017 | 2017-2018 | 2018-2019 | 2019-2020 | 2020-2021 | 2021-2022 |
| April-June | 7.8% (will mature in 110 months) | 7.6% (will mature in 113 months) | 7.3% (will mature in 118 months) | 7.7% (will mature in 112 months) | 6.9% (will mature in 124 months) | 6.9% (will mature in 124 months) |
| July-September | 7.8% (will mature in 110 months) | 7.5% (will mature in 115 months) | 7.3% (will mature in 118 months) | 7.6% (will mature in 113 months) | 6.9% (will mature in 124 months) | 6.9% (will mature in 124 months) |
| October-December | 7.7% (will mature in 112 months) | 7.5% (will mature in 115 months) | 7.7% (will mature in 112 months) | 7.6% (will mature in 113 months) | 6.9% (will mature in 124 months) | 7% (will mature in 123 months) |
| January-March | 7.7% (will mature in 112 months) | 7.3% (will mature in 118 months) | 7.7% (will mature in 112 months) | 7.6% (will mature in 113 months) | 6.9% (will mature in 124 months) | 7.2% (will mature in 120 months) |
| For the quarter of April through June 2023, deposits made into KVP accounts currently yield an interest rate of 7.5% yearly compounded. At the current return rate, you will need to double your money under this savings plan in 115 months (9 years and 7 months). |
Documents Required to Get Kisan Vikas Patra Certificate
- Identity Proof (Aadhaar Card, Voter ID, Passport, etc.)
- Address Proof (Utility Bill, Bank Statement, etc.)
- Passport Size Photographs
- PAN Card
- Application Form
Download Kisan Vikas Patra Form
You must either obtain the application form directly from the Post Office or download it online in order to apply for a Kisan Vikas Patra certificate. This form must be completed and turned in to the post office.
Steps to Invest in Kisan Vikas Patra
- Gather Documents: Ensure you have all the required documents mentioned earlier.
- Visit Post Office: Go to the nearest post office.
- Fill Application Form: Complete the KVP application form.
- Submit Documents: Submit your documents along with the application form.
- Make Payment: Make the payment for the amount you wish to invest in KVP.
- Receive KVP Certificate: Once your application is processed, you will receive the KVP certificate.
Kisan Vikas Patra Nomination
Holders of certificates—single or joint—may submit a nomination by completing Form C at the time of purchase. You can designate anyone to be eligible for the certificate’s benefits in the event that the certificate’s sole or joint holders pass away.
If the nomination is not made at the time of purchase, it may be made at any time after the certificate is bought but before it matures by the single holder, joint holders, or surviving joint holder by submitting a duly completed Form C. You should deliver it to the postal worker or bank employee who registered the certificate.
Premature Withdrawals from Kisan Vikas Patra
After two years and six months from the date of issuance, which is also the lock-in period, the KVP might be prematurely withdrawn. Premature withdrawal from KVP must be requested in writing to the Post Office in order for the holder to get the money.
How to Transfer Kisan Vikas Patra Post Office Online
The owner may programme the KVP certificate to be transferred from one Post Office to any other one using a form created by the Post’s Director General at either of the Post Offices. If the certification is of mixed variety, both owners must approve the programme.
Documents Required for KVP Post Office Transfer
- Duly filled and attested Form B
- Proof of Identity (Aadhaar Card/PAN Card/Driving License/Voter ID)
- Proof of Address (Passport/Electricity Bill/Water Bill/Bank statement)
- Original KVP Certificate
- Application validating the transfer, signed by the account holder
How to Transfer KVP From One Person to Another
- Visit the post office with the original KVP certificate.
- Fill out the transfer application form.
- Submit identity proof for both parties.
- The post office will process the transfer and issue a new certificate in the transferee’s name.
KVP vs FD: Kisan Vikas Patra vs Fixed Deposits
| Parameter | Kisan Vikas Patra | Fixed Deposits |
| Interest Rate | 7.5 (as of 2023) | Varies by bank |
| Tax Benefits | No | Yes, under 80C |
| Premature Withdrawal | After 2.5 years | Usually after 6 months with penalty |
| Risk | Low | Low |
KVP vs NSC: Kisan Vikas Patra vs NSC
| Parameter | Kisan Vikas Patra | National Savings Certificate |
| Interest Rate | 6.9% (as of 2023) | 6.8% (as of 2023) |
| Investment Tenure | 124 months | 60 months |
| Tax Benefits | No | Yes, under 80C |
| Premature Withdrawal | After 2.5 years | Only under specific circumstances |
Kisan Vikas Patra is an excellent investment option for those looking for low-risk investments with assured returns. But always take care of your financial goals.
KVP Helpline Number
For any queries, contact 1800 266 6868, which is the helpline number.
FAQs
What is Kisan Vikas Patra scheme?
Kisan Vikas Patra is a government-backed savings scheme in India, where the invested money doubles over a fixed period.
Who are eligible for Kisan Vikas Patra?
Indian residents above the age of 18 can invest in Kisan Vikas Patra; it is also available for minors through guardians.
Is Kisan Vikas Patra a good investment?
Kisan Vikas Patra is considered a safe investment with guaranteed returns, but it may not be the best for everyone as it lacks tax benefits and has relatively lower returns compared to other investments.
Which is better KVP or PPF?
PPF is generally considered better due to its tax benefits and potentially higher returns, but KVP can be more liquid due to a shorter lock-in period.
Can I get my KVP transferred from the post office to the bank?
Yes! It can be done by submitting Form B.
Can I transfer a KVP certificate to another person?
Yes, a KVP certificate can be transferred to another person under certain conditions.
Is the old certificate valid even after transferring it to another person?
No, upon transfer, a new KVP certificate is issued in the name of the transferee, and the old certificate becomes invalid.
In how many months will the KVP be doubled?
As of 2023, KVP will double in approximately 124 months (10 years and 4 months).
Is KVP taxable?
The interest earned on KVP is taxable upon maturity
How can I encash KVP after maturity?
To encash KVP after maturity, visit the post office where the KVP was issued, submit the certificate and a filled-in claim form, and receive the amount either in cash or through a bank account.
How to buy KVP online?
Visit India Post, download KVP Form A, fill details, submit with KYC, make a deposit, and receive certificate.
Can I encash my KVP at a different Post Office when I have shifted to a different city?
Yes, but you need to transfer your KVP to the new post office first.
What happens if KVP is not encashed after maturity?
If KVP is not encashed after maturity, it will continue to earn interest for up to two years; beyond that, it will not earn any interest.
Is KVP taxable on maturity?
Yes, the interest earned on KVP is taxable upon maturity.
Is Kisan Vikas Patra interest taxable?
Yes, the interest earned on Kisan Vikas Patra is taxable.
