Government of India has relaunched Kisan Vikas Patra which is the small saving scheme which was discontinued earlier hoping to lure investors away from gold and fraudulent schemes by offering attractive terms. There won't be any upper limit on investments, the minimum denomination being Rs 1,000.
Investors will be able to double their money in 100 months but the government has bundled in a number of features to enhance liquidity of the instrument as the new regime looks to raise the level of financial savings that fell to 7.1 per cent of GDP in FY13 from more than 12 per cent in FY10.
There are many features of new Kisan Vikas Patra which are as under.
1- The Kisan Vikas Patra shall be issued in denominations of Rs. 1,000/-, Rs. 5,000/-, Rs.10,000/- and Rs. 50,000/-.
2- Money will be doubled in 100 Months in KVP certificates.
3- Purchase of Certificate.—Any number of Certificates of the denominations specified in rule 4 may be purchased.
4- KVP can be purchased as a single holder or joint holder names.
5- A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor.
6- An application In Form A to be submitted in post office or bank to purchase the KVP certificate.
7- Payment can be made in cash, cheque or withdrawl form attaching pass book of saving account in the bank.
8- Certificates will be issued immediately on receiving the payment. However in the case of cheques or pay order, certificate will be issued only after realization.
9- A provisional receipt will be given if no certificate issued in any case which can be later exchanged with the certificates.
10- KVP is transferrable from post office to bank and vice versa.
11- Certificate can be transferred from one person to another in death, joint to single name, single to joint name or any court order etc.
12- No transfer shall be permitted in respect of a Certificate held by or on behalf of a minor till the minor is alive.
13- Nomination is must in single holder account.
14- Simple interest rate will be given after maturity of certificates.
15- Duplicate certificates can be issued in case of lost certificates.
16- Maturity time is 8 years and 4 Months of KVP certificates.
17- KVP certificate investment is eligible for 80C deduction under income tax act.
Download Full government notification on Kisan Vikas patra