Kisan Vikas Patra is a certificate scheme offered by the Indian post office. It takes about 9.5 years (115 months) for a one-time investment to double. For example, if you invest Rs.5,000 in a Kisan Vikas Patra, you will receive Rs.10,000 after it matures. We will discuss the features and possibilities of this scheme in this article.
Kisan Vikas Patra Overview
India Post introduced the Kisan Vikas Patra in 1988 as a small saving certificate scheme. The main goal is to motivate people to practice long-term financial discipline. The scheme’s duration has been updated to 115 months, which is equivalent to 9 years and 5 months.
The minimum amount you can invest is Rs.1,000, and there is no maximum limit. If you invest a certain amount of money today, you will receive twice that amount after 115 months. The name “initially” refers to the fact that it was originally designed for farmers to help them save money for the long term. Now everyone can access it.
In order to prevent money laundering, the government made it mandatory in 2014 to provide proof of PAN card for investments over Rs.50,000. If you want to deposit Rs.10 lakh or more, you need to provide proof of income such as salary slips, bank statements, and ITR documents.
This is a safe place where you can put your money for a certain amount of time without much risk. Additionally, it is required to provide the Aadhaar number as proof of the account holder’s identity.
Kisan Vikas Patra Eligibility
People who are eligible to invest in KVP include:
- The person applying must be a citizen of India.
- The person applying must be older than 18 years old.
- An adult can apply for someone who is under 18 years old or someone who is unable to make decisions for themselves.
- Hindu Undivided Family (HUF) and Non-Resident Indians (NRIs) cannot invest in KVP.
Types of Certificates Available
There are different types of Kisan Vikas Patra certificates:
- A Single Holder Type Certificate is a certificate that is issued to an adult for themselves, on behalf of a minor, or to a minor.
- A Joint ‘A’ Type Certificate is a certificate that is issued to two adults. It can be paid to both holders together or to the survivor if one of them passes away.
- A Joint ‘B’ Type Certificate is a certificate that is issued to two adults. It can be paid to either of the holders or to the survivor.
Also Read: e-Shram Card Registration: Apply Online, Benefits, Eligibility and Documents Required
Steps to Invest in Kisan Vikas Patra
Investing in Kisan Vikas Patra is easy, as explained below.
- Get the application form, called Form A, and complete it by providing the required information.
- Please take the completed form to either the post office or the bank.
- If you invest in KVP through an agent, the agent will need to fill out Form A1. You can also get these forms from the internet.
- The Know Your Customer (KYC) process is required, and you must provide a copy of your ID and address proof (such as PAN, Aadhaar, Voter’s ID, Driver’s License, or Passport).
- After the documents are checked and confirmed, you need to make the deposit. You can make the payment in cash, by a locally executed cheque, pay order, or demand draft. The payment should be made in favor of the postmaster.
- If you make payment by cheque, pay order, or demand draft, you will not receive a KVP certificate immediately. Make sure to keep this document safe because you will need to submit it when it reaches its maturity date. You can also ask them to email you the certificate.
If you think Kisan Vikas Patra is a good investment that aligns with your financial goals, you should invest in it right away. Opening and managing it is simple. To complete the task, simply make sure you have the required amount of money and then go to the nearest post office. You can now invest in KVP using Department of Post (DOP) internet banking.
Nomination
If you are buying a certificate, whether on your own or with someone else, you can fill out Form C to make a nomination. If you nominate someone, they will receive the benefits of the certificate if the single holder or both joint holders pass away.
If you didn’t nominate someone when you bought the certificate, you or the other holders can nominate someone later by filling out Form C. You have to do this before the certificate matures. Take the certificate to the postmaster or bank officer who registered it and submit it there.
However, if a minor applies for and holds the certificate, they cannot make a nomination. If the person or people who have the certificate make a nomination in this situation, it will be canceled or changed using Form D.
If you have multiple certificates registered on different dates, you need to submit separate applications for nominating, canceling, or changing the nomination. The application will become effective once it is registered and this will be indicated on the certificate. When you make nominations for the first time, it doesn’t cost anything. If you make additional nominations or cancellations, there will be a charge of Rs.20 per application.