Kisan Vikas Patras (KVPs) are a safe long term investment option.
No fresh KVPs will be issued w.e.f. 1st December 2011
|Eligibility||Any adult individual singly or two adults jointly.
A guardian on behalf of a minor.
|Minimum amount||Available in denominations of Rs. 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/-, Rs. 10,000/-, in all Post Offices and Rs. 50,000/- in all Head Post Offices.|
|Maximum amount||No maximum limit|
|Maturity period||8 years & 7 months.|
|Interest Rate||8.40 per cent per annum compounded yearly.|
Money doubles in 8 years 7 months.
|Transferability||Transferable from one Post Office to another.
KVPs can also be transferred from one person to another.
On an application being made in the prescribed Form by the transferor and transferee, the Postmaster may permit the transfer of any certificate (pledging of certificate) as a security.
Transfer of the KVPs purchased on behalf of minor is permitted only if his guardian certifies that the minor is alive and the transfer is for the benefit of the minor.
|Encashment|| KVPs can be encashed at the Post Office of its issue. These can also be encashed at any other Post Office if the Officer-in-Charge of that Post Office is satisfied with the production of Identity Slip or on verification from the |
Post Office of issue that the person presenting the certificate for encashment, is entitled thereto.
Facility for premature encashment as per the table given below (for the KVP purchased on or after 1st March 2003). Maturity value for Rs. 1,000/- denomination
|Tax benefits||Not available|
|Interest Taxability||Taxable |
No tax deduction at source.