All about Kisan Vikas Patra Scheme- KVP Features and Liquidity

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Kisan Vikas Patra is saving scheme that was issued by the government of India that doubles money within Eight Years and four months’ time period. The Directorate of small Saving Government of India that sells these saving bonds through all post offices in the country so that the scheme can be accessed by citizens from all over the country. Kisan Vikas Patra can be enchased after two and half years from the date of release at the value it has been bought and the interest accrued for the period.

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Important facts about KVP:

  1. In case of Kisan Vikas Patra Scheme, The Invest amount would get doubled in 100 months or 8 years and four months.
  2. So, Investor would not get any tax benefit for their investment in Kisan Vikas Patra unlike PPF. KVPs would be giving a return of 8.7 % annually.
  3. In case of Kisan Vikas Patra certificates would be provide in the denominations of Rs. 1000, 5000, 10000 and 50, 000 and there will be no upper limit in case of KVPs.
  4. KVP Certificates can be encashed after a Lock-in period of 30 months or 2 years and 6 months , so investor can withdrawal in any block of six months.
  5. KCP Certificates can be released in single or joint names; it can be transfer one person to other persons many times.
  6. In case of KVPs, the facilities of transfer from one post office to another post office anywhere in India and of information will be available.
  7. KVPs Certificates can also pledged as security to avail loans from the banks.
  8. In earlier, KVP Certificate will be sold through post office, but now it will be made available to the through designated branches of nationalized banks.

Some features of new KVP Scheme in brief:

  • Interest – 8.7 percent
  • Time period – 8 years and four months
  • Investment amount will be doubled in 100 months
  • In case of KVP scheme, Minimum Lock-in period two years and six months.

Liquidity of KVPs:

  • KVPs Certificates can be encashed in eight equal monthly installments after lock-in period
  • KVP Certificate can be transferred to another person by endorsement and delivery
  • KVP Certificate can also be given as collateral for loans by banks
  • In case of KVP, Minimum investment Rs.1000. thereafter in denominations of Rs.5000, Rs. 10000and Rs.50000. There will be no maximum limit.
  • Fully taxable
  • Way of investment –Cash or Cheque
  • In Case of KVPs, Known your customer (KYC) norms: PAN card not required but identity and address proof required.

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