Kisan Vikas Patra

• Initial investment amount starts from Rs.1000 and in multiples of Rs.100 thereof
• Total plan tenure is 124 months (10 years and 4 months)
• Premature withdrawal is allowed after 2 and a half years, subject to certain conditions
• KVP Certificates can be purchased at your nearest Post Office
• The latest interest rate on KVP is at 6.9% per annum
• KVP Certificates can be pledged as collateral while applying for loans

Who is eligible to purchase the Kisan Vikas Patra (KVP)?

Kisan Vikas Patra is open for all Indian citizens. It can be purchased by –

• An individual as single holder
• Joint ‘A’ Type Certificate: This is given to two adults jointly and is payable to both of them or to the survivor.
• Joint ‘B’ Type Certificate: This is issued jointly to two adults, payable to either of the holders or to the survivor.
• Minors above the age of 10, through their legal guardian

How can I purchase the Kisan Vikas Patra (KVP)?

Kisan Vikas Patra can be purchased at your nearest post office by submitting the relevant application form and the initial deposit amount. The initial deposit amount can be paid either by cash or cheque. You also need to submit the following documents:

• KYC Documents
• Duly filled KVP Form
• Address Proof
• Date of Birth Proof

How do I make a deposit into my Kisan Vikas Patra KVP account?

The KVP certificate is bought with a single deposit. It works like an FD where the invested amount earns interest for the entire term of the scheme. The minimum initial deposit can be either made through cash or cheque. An individual can buy any number of KVP Certificates.

What happens when my KVP Certificate matures?

A KVP Certificate matures after 124 months or 10 years and 4 months. Upon maturity, the amount can be withdrawn by the investor or credited to their Post Office savings bank account. A duly filled closure form should be submitted to the respective post office along with the original KVP certificate and identity proof.

Individuals will cash in their KVP certification by going to the post office or a bank branch where they bought it in the first place. If an emergency occurs, they may encash the certificate from either the post office or bank branch, but only with the permission of the post manager or respective bank manager of the said entity.

• If a person withdraws their investment amount within a year of purchasing it, they will not earn any interest on it. Furthermore, they will face a penalty as a result of that.
• If an individual chooses to withdraw their invested funds after one year but before 2.5 years, they will earn a low rate of return. Besides this, no extra fines or penalties will be levied against it.
• Individuals who wish to withdraw their investment from the Kisan Vikas Patra scheme after 2.5 years will earn the guaranteed rate of return and will not be charged a penalty.

Can I close my KVP Account prematurely?

KVP can be closed before maturity at any time if the following requirements are met:

• Upon completion of two years and six months of the deposit start date
• When a single account, or any or more of the account holders in a joint account, dies
• When a pledgee, who is a gazette officer, forfeits the account
• When a judge orders it

Can you transfer your KVP Account to another person’s name?

Yes, the KVP account can be transferred to another person upon the following conditions only:

• Upon the death of the account holder, the nominee/legal heirs receive the funds
• When an account holder dies, the joint holder inherits the account(s)
• On the court's order, this can be case-specific
• When an account is pledged to a specific authority

Pledging of your KVP Certificate

KVP may be pledged or transferred as protection by sending the specified application form to the relevant Post Office, accompanied by an acceptance letter from the pledgee.

Transfers and pledges may be made to the authorities mentioned below:

• The President of India/State
• Governor of the Reserve Bank of India/Scheduled Bank/Co-operative Society/Co-operative Bank
• Corporation (public/private)/Government Company/Local Authority
• Housing Finance Company

FAQs