Kisan Vikas Patra is a special saving scheme offered by the Post office in India for all the citizens of India. Initially the scheme was opened for the farmers and agriculture workers but later it was extended to all the citizens of India. The key feature of this scheme is that amount deposited in the scheme is nearly doubled after a stipulated period.
Who can purchase Kisan Vikas Patra?
Any single adult
Joint A Account can be opened by Maximum of 3 adults.
Joint B Account can be opened by Maximum of 3 adults.
Minor of age 10 years or above.
A parent guardian on behalf of a minor.
A guardian on behalf of a person of unsound mind
Documents Required for Kisan Vikas Patra
Following documents are required for kisan vikas patra.
Account opening form
Passport size photograph
Address Proof such as Aadhar Card, Ration card or Passport with current address, Telephone, Water or Electricity bill, letter issued by Unique Identification Authority of India with current address, salary slip of reputed employer with current address or Bank Passbook / statement or post office statement with current address.
Identification proof such as PAN card, Election Id, Passport or Ration Card with photograph, Driving Licence, Post office saving bank identity card, any identity card issued by central or state government, photo identity card issued by recognised School, education board, college or university, letter issued by Unique Identification Authority of India.
Cheque or cash deposit for the amount to be invested.
All documents need to be self-endorsed by the Individual or joint account holders. In case the account is opened by an illiterate the documents need to be verified and attested by a gazetted officer or head / chief postmaster etc.
If the account is opened through an agent, documents need to be verified by the agent as well.
Key Features of Kisan Vikas Patra
The minimum amount deposited should be Rs. 1000/- or multiples of Rs. 100/-.
There is no maximum limit defined to such deposit.
The amount invested is doubled upon completion of 9 years and 5 months which is 113 months in total depending upon the interest rate.
The interest is compounded annually at 7.6% per annum effective 01 July 2019.
The applicant can purchase the KVP from any departmental post office.
The KVP holder is issued a passbook effective 01 July 2016.
The account holder can nominate a legal heir.
The account holder can encash the certificate after completion of two and a half years.
The account holder can transfer the certificate from one post office to another.
The account holder can also transfer the certificate in name of another person after completion of requisite documentation.
The account holder does not get any tax benefit under this account.
The account holder can avail loan from any of the Banks against the Kisan Vikas Patra.
Closure of Account.
The scheme is long term investment scheme and is closed after completion of 9 years and 5 months.
However, the account holder can close the account after completion of two and a half years.
In case of death of account holder before the completion of two and a half years, the nominee or legal heir can close the account after completion of stipulated documents.
In specific conditions where the court has issued an order for premature closure of the account, the account is closed as per the instructions of the Court.
Documents required to be submitted in case of death of account holder
In case of Nomination, nomination claim form is required to be submitted along with the KYC and claim form.
If there is no nomination and the deposit value is less than 5 Lakhs on the date of death, the legal heir needs to submit documents such as claim form, death certificate, legal evidence and KYC.
If there is no nomination and the deposit value is above 5 Lakhs on the date of death, succession certificate is required to be submitted for the claim.