The Kisan Vikas Patra is a savings scheme certificate that can be purchased from India Post. This is provided in the form of a saving certificate where the amount that is invested will double in 8 years 4 months (100 months) time. This scheme was first launched by India Post in 1988. Though this scheme was successful right from its inception, a committee was setup by the Government of India which gave the recommendation that there were possibilities that the Kisan Vikas Patra could be misused. As a result of this conclusion, the Kisan Vikas Patra scheme was shut down in 2011, but the new government that formed in 2014 decided to re-launch this scheme.
The Kisan Vikas Patra can be purchased from any Departmental Post Office. The minimum deposit amount is Rs. 1000, there is no maximum limit fixed. This saving schemes certificate can be purchased by an adult for themselves or on the behalf of a minor. It can also be purchased by 2 or more adults. This certificate can only be encashed after a minimum of 2 and a half years.
Kisan Vikas Patra - Rules and Guidelines
After the relaunch of the Kisan Vikas Patra scheme, the Central Government of India has issued the following kisan vikas patra rules and guidelines with regard to the same:
- Title and commencement - All rules with regard to this scheme will be called the “Kisan Vikas Patra Rules, 2014” and will come into force the day they are published in the Official Gazette.
- The definition of certain words in all the rules, unless otherwise required, will mean the following:
- Act - Government Savings Certificate Act, 1959
- Cash - Cash in Indian currency
- Certificate - Kisan Vikas Patra
- Form - Form annexed to these rules
- Post Office - Any departmental post office in India involved in Savings bank work
- Bank - Any branch of the State Bank of India, all its associate banks and designated branches of commercial and nationalized banks that are authorised for the Public Provident Fund Scheme.
- Application - The process of application for the Kisan Vikas Patra remains the same as that of the Post Office Savings Certificate Rules, 1960
- Denomination of Certificates - Certificates of the Kisan Vikas Patra scheme will only be issued in denominations of rs. 1,000/-, Rs. 5,000/-, Rs. 10,000 and Rs. 50,000/-
- Purchasing the Certificate - Any number of certificates can be purchased of the specified denominations.
- Types and Issue of Certificates - There are three types of certificates for the Kisan Vikas Patra scheme and issued for the following:
- Single Holder Certificate - This certificate is issued to an adult for himself or on behalf of a minor ot to a minor.
- Joint ‘A’ Type Certificate - This type of certificate is issued jointly to two adults and is payable to both the holders jointly or to the survivor.
- Joint ‘B’ Type Certificate - This type of certificate is issued jointly to two adults but payable to either of the two holders or the survivor.
- Procedure of Purchase of Certificate - To buy a Kisan Vikas Patra certificate, the person needs to be present and submit an application form for the same. The payment for this certificate can be made by cash, a demand draft drawn in favor of the Postmaster or a signed withdrawal form or cheque.
- Issue of Certificate - The certificate is issued immediately after the payment is made. The date of the certificate shall be the date of the payment. If for any reason, the Kisan Vikas Patra Certificate cannot be issued immediately, a provisional receipt is issued which can be later exchanged for a certificate.
- Transfer of Kisan Vikas Patra Certificate from one person to another - A Kisan Vikas Patra can be transferred from one person to another by writing to the postmaster. Cases in which the transfer can be sanctioned are (i) from the name of the deceased to their legal heir (ii) from a holder to the court of law or another person under the orders of a court of law (iii) from a single holder to the names of the joint holder.
- Pledging of Kisan Vikas Patra Certificate - On an application made in Form B by the transferor and transferee, the Postmaster may allow the transfer of any certificate as security at any time to (i) the President of India or Governor of State (ii) The RBI or a Scheduled Bank or a Cooperative Society including a Cooperative Bank (iii) a Government agency or a Corporation (iv) a Housing Finance Company approved by the National Housing Bank and notified by the Central Government of India (v) a local authority; provided that the transfer of the certificate on behalf of a minor shall not be permitted under this rule.
- Nomination - The purchaser of the certificate, single or joint holder can nominate any person who in the event of the death of the certificate holder shall be entitled to hold the certificate. The payment of the amount will be made to the nominee at the maturity of the scheme.
- Post Maturity Interest - When the repayment of the amount is, inclusive of interest is due and has not been made, the interest on the amount due shall be allowed under the following conditions:
- It will be simple interest and calculated at the rate applicable from time to time to Post Office Savings Account.
- Any part of the period, for the purpose of payment of interest, that is less than one month shall be ignored.
- The depositor can receive the interest in lump sum at the time of repayment of the due amount.
- Replacement of destroyed or Lost Certificate - If a Kisan Vikas Patra certificate is lost, damaged or destroyed, the person can apply for a duplicate of the same to the post office or the bank where the certificate was issued. If the application has been made to a post office or bank where it was not issues, the application will be forwarded to the right location. The application should have the certificate number, amount and date and the circumstances of destruction, defacement or loss. A duplicate certificate issued can be treated as an original certificate for all purposes except that it won’t be encashable without prior verification.
- Place of encashment of Kisan Vikas Patra - The certificate can be encashed at the post office or the bank where it was issued. It can also be encashed at another post office or bank provided the issuing authority is satisfied with the verification from the location of issue and the person holding the certificate that needs to be encashed.
- Encashment of Kisan Vikas Patra on Maturity - For any denomination of certificate issued, the period of maturity will be eight years and four months commencing from the date of issue of the certificate. The amount inclusive of interest which is payable while encashing a certificate after the expiry of the maturity period will be double of that of the deposited amount.
- Premature Encashment of Kisan Vikas Patra Certificate - The certificate can also be encashed before the completion of the maturity under certain circumstances such as the death of the holder or any of the holders in case of a joint holder, when ordered by a court of law or on forfeiture by pledge being a Gazetted Government Officer. The minimum lock in period for this scheme is two and half years and can be prematurely encashed any time after this period. The simple kisan vikas patra interest rate is calculated from time to time under the scheme.
- Discharge of Certificate - On the encashment of the certificate, the holder will sign at the back of the certificate as a sign of having received the payment.
- Rectification of mistakes - Any clerical and arithmetical mistakes with regard to the certificate can be rectified by the Postmaster General provided it does not cause any financial loss to the Government.
- Power to relax - If a holder is facing an undue hardship, the rules may be made flexible for them on humanitarian grounds, that is not inconsistent with the Act, if recorded in writing and approved by the Central Government.