Kisan Vikas Patra: Double Your Money in 100 months

Kisan Vikas Patra (KVP) has been launched again recently by Indian Post office. The scheme is one of the popular savings scheme in middle class Indians.

With the objective to raise savings in Indai, the central government re-launched Kisan Vikas Patra (KVP), an instrument which will provide trusted option of investment to poor and keep them off ponzi schemes

Finance Minister Mr. Arun Jaitley said during the launch of the revamped KVP said, "In the last 2 to 3 years, savings rate in India has declined from a record high of 36.8% to below 30% due to slowdown in the economy. It is, therefore, necessary to encourage people to save more" 

 
 

The scheme was closed in year 2011 by then Congress - led Government and started again recently after making its comeback announcement in budget this year by Finance Minister Mr. Arun Jailtly.

However, KVP will be launched in its new avatar. 

KVP Highlights..!

* Minimum denomination is Rs.1,000

* There is no upper limit of investment in KVP.

* The certificates will be issued in denominations of 
Rs.1,000, Rs.5,000, Rs.10,000 and Rs.50,000.

* The certificates can be bought in single name or joint name.

* KVP can be transferred from one person to another person multiple times.

* Certificates can be transferred from one post office to another, so that you can redeem your money from any post office branch and not necessarily from the issuance branch.

* Later on, KVP’s will be available from Nationalized banks also.

* You can avail loan also on your KVP certificate.

* The maturity period if 100 months. That means, your money gets doubled in 8 years & 4 months.

* There will be lock-in period of 2 years & 6 months. After that, an investor can redeem KVP amount subject to penalty. Thereafter, investors can withdraw in any block of six months.

* This simple product would be a bearer instrument without name of the holder in the first phase.

* KVP, that has got no upper ceiling for investment

* It can be encashed after a lock-in period of 30 months.

* Initially, the KVP 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.

* KVP Savers would not get any tax benefit for their investment in KVP that is There are no tax benefits as of now in new KVP.

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