Kisan Vikas Patra

Kisan Vikas Patra is a savings scheme certificate that was first launched in the year 1988 by the Indian Post. The savings scheme policy was that the amount that was invested will double in 8 years and 4 months (100 months) time. Though the scheme was very popular and going on successfully the Government of India concluded making a statement in a committee that the scheme can be misused. Therefore, the Kisan Vikas Patra was shut down in the year 2011, but later the Government decided to re-launch the scheme again in 2014.

The Kisan Vikas Patra can be purchased at any Departmental Post Office. The minimum deposit amount for this scheme is Rs 1000 and there is no maximum limit fixed. The savings scheme certificate can purchase by an adult on the behalf of any minor or for themselves. It can also be purchased by 2 or more adults. The certificate can only be encashed after a minimum of 2 years and a half years.

Kisan Vikas Patra- Their Rules and Guidelines

After the re-launch of the Kisan Vikas Patra Scheme, the Central Government has designed certain Rules and Guidelines for the scheme:

Title and Commencement: All the rules regard to this scheme will be called as the “Kisan Vikas Patra Rules, 2014” and will come into the force the day it is published in the Official Gazette.

The Scheme has certain words in the rules which depict different meanings:

• 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 State Bank of India branch, and all its associate banks and designated branches of commercial and nationalized banks that are authorized for the Public Provident Fund Scheme.

Application: The process of the application for the Kisan Vikas Patra remains the same as that of the Post Office Savings Certificate Rule 1960.

The denomination of the Certificates: The Certificates of the Kisan Vikas Patra will be issued in the denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000.

Purchasing the Certificate: You can purchase as many numbers of certificates of the specified denominations.

Types and Issue of the Certificates

There are three types of certificates for the Kisan Vikas Patra scheme and these can be issued for the following:

• Single Holder Certificate: This type of certificate is issued to the adult for himself or on the behalf of a minor or to the 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 survivors,

Joint “B” type Certificate: This type of certificate is issued jointly to two adults but is payable to either one of the two holders or the survivor.

· The procedure of the Purchase of the Certificate: To buy a Kisan Vikas Certificate, the person needs to be present and must submit an application form for the same. The payment of the certificate can be made by cash or demand draft drawn in the favor of the Post Master or signed withdrawal form or cheque.

· Issuance of the Certificate: The Certificate is issued immediately after the payment is made. The date of the certificate will be the date of the payment. If in case the Kisan Vikas Patra cannot be issued immediately, then a provisional receipt is issued which can be later exchanged for a certificate.

Transfer of the Kisan Vikas Patra Certificate from one person to another

A Kisan Vikas Patra can transfer from one to another person by writing to the postmaster. Cases in which the transfer are sanctioned are:

1. From the name of the deceased to their Legal Heir.

2. From the holder to the court to the court of law or another person under the court of the law.

3. From the single holder to the joint holders.

Pledging of the Kisan Vikas Patra Certificate: In the Form B Application by the transferor and the transferee, the Postmaster may allow the transfer of any certificate as a security at any time to the following:

i. The President of India or the Governor of the State.

ii. The RBI or the scheduled bank or a Co-operative society including the Co-operative bank

iii. The Government Agency or any Co-operation

iv. A Housing Finance Company approved by the National Housing Bank.

v. A Local Authority provided that the transfer of the certificate on the behalf of the minor will not be permitted under this rule.

Nomination: Any purchaser or a single holder or a Joint holder can nominate any person who is in the event of the death certificate and must be entitled to hold the certificate. The payment of the amount will be done to the nominee at the maturity of the scheme.

Post Maturity Interest: when the amount is compensated, inclusive of the interest is due and has not been made, then the interest on the amount due shall be done under the following conditions:

i. It must be simple interest and calculated at the rate applicable from time to time to Post Office Savings Account.

ii. If any interest amount to be paid at any period of the time which is less than one month is ignored.

iii. At the time of the repayment of the due amount, the depositor can receive the interest lump sum.

· If the KVP certificate is lost or damaged then, the person can apply for a new one is the same Post Office or the Bank where it was issued. The duplicate certificate which is issued later will be treated as the original one.

· The certificate can be encashed at the post office or the bank where it was issued. The certificate can also be encashed at other post office or the bank provided that the issuing authority must be satisfied by the verification from the location of the issue and the person holding the certificate needs to be encashed.

· If a certificate is issued for any denomination, then the period of maturity will be eight years and 4 months old from the date of the issue of the certificate.

· The certificate can also be encashed before the completion of the maturity under certain circumstances, like the death of the holder etc. The minimum lock period of this scheme is two and a half year and can be prematurely encashed at any period of time. The simple Kisan Vikas Patra Interest Rate is calculated in this scheme.

· On the encashment of the certificate, the user has to sign at the back of the certificate of having received the payment.

· Any errors or any arithmetical mistakes can be rectified by the Post Master General as it does not create any Financial Loss to the Government.

· If a holder is facing an undue hardship then, the rules can be made flexible, that is not inconsistent with the Act if recorded in writing and approved by the Government.