Kisan Vikas Patra or KVP was first introduced in the year 1988 by India Post. KVP is a saving certificate scheme wherein the amount that is initially invested, doubles in 100 months (8 years, 4 months). Although it proved to be a success in its early months, it was closed in the year 2011 after a Government of India appointed committee under the leadership of Shayamla Gopinath gave the recommendation that the Kisan Vikas Patra(KVP) could be misused. When the new government was formed in the year 2014, it decided to relaunch this scheme.
A KVP certificate can be purchased by an adult for themselves or on the behalf of a minor, a Trust or two adults can jointly purchase the KVP certificate. There is no maximum limit set for the purchase of a KVP certificate, the minimum limit however is Rs. 1000. KVP also has the facility of nomination. You can purchase a KVP certificate from any Departmental Post Office. The certificate can be encashed prematurely after the lock in period of 2 and a half years from the date it was initially issued.
Kisan Vikas Patra Premature Withdrawal through Encashment
- The facility to encash the Kisan Vikas Patra can be availed from the Post Office where the certificate was initially issued.
- If you are unable to encash the Kisan Vikas Patra certificate at the issuing Post Office, you will have to complete certain formalities to successfully withdraw your KVP certificate. You will need to carry your identity slip for the encashment.
- The KVP can also be prematurely encashed after the initial lock in period of 2 and a half years from the initial issue date of the KVP certificate.
- When the KVP certificate is prematurely enchased, you will receive the entire principal amount plus kisan vikas interest rate which will be less than the full rate that you would normally have been given.
1. What is the Kisan Vikas Patra?
Kisan Vikas Patra is a saving schemes introduced by the India Post where you can purchase a saving certificate that will yield you double the amount invested after the maturity period of 100 months (8 years, 4 months). You can purchase it as an adult for yourself or on the behalf of a minor, if you are part of a Trust, you can purchase it as a Trust or you can purchase it combined with another adult as a joint owner. You can also encash the KVP certificate prematurely for the principal amount and some part of the interest.
2. Where can I encash my KVP certificate?
You can encash your KVP certificate at the Post Office where the certificate was initially purchased/ issued.
3. If I cannot encash my KVP certificate at the Post Office where it was issued, how do I encash it?
If under any circumstance you are unable to encash the KVP certificate at the issuing Post Office, you will need to complete certain formalities to do so and you will need to carry your identity slip for the encashment.
4. When I prematurely encash my KVP certificate, will I receive an interest on the certificate or only the principal amount?
When you encash your KVP certificate, you will receive the entire principal amount invested along with an interest but the interest you receive will be less than the full rate that you would have normally earned after the maturity of the certificate.
5. When am I eligible to encash my KVP certificate?
You can encash your KVP certificate after the lock in period of 2 and a half years or 30 months.