FM to Relaunch Kisan Vikas Patra (KVP); Available to the Investors in
the Denomination of Rs. 1000, 5000, 10,000 and 50,000, with no Upper Ceiling on
Investment; Investment made in the KVP will Double in 100 Months
The Union Finance
Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here
tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of
Communication and IT and Shri Jayant Sinha, Minister of State for Finance among
others. Increasing savings rate in the economy was one of the priorities of the
new Government on assuming charge. In view of the popular demand and to
revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech
announced that “Kisan Vikas Patra (KVP) a very popular instrument among small
savers will be reintroduced The instrument will encourage people, who may have
banked and unbanked savings to invest”. Accordingly, it is decided to
reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings
Schemes (NSS) are now applicable in post offices and banks w.e.f. January,
2012.
The re-launched Kisan
Vikas Patra (KVP) will be available to the investors in the denomination of Rs.
1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The
certificates can be issued in single or joint names and can be transferred from
one person to any other person / persons, multiple times. The facility of
transfer from one post office to another anywhere in India and of nomination
will be available. The certificate can also be pledged as security to avail
loans from the banks and in other case where security is required to be
deposited. Initially the certificates will be sold through post offices, but
the same will soon be made available to the investing public through designated
branches of nationalised banks.
Kisan Vikas Patras have
unique liquidity feature, where an investor can, if he so desires, encash his
certificates after the lock-in period of 2 years and 6 months and thereafter in
any block of six months on pre-determined maturity value. The investment made
in the certificate will double in 100 months.
Reintroduction of Kisan
Vikas Patra (KVP) is a welcome step not only in the direction of providing safe
and secure investment avenues to the small investors but will also help in
augmenting the savings rate in the country. The scheme will also safeguard
small investors from fraudulent schemes. With a maturity period of 8 years 4
months, the collections under the scheme will be available with the Govt. for a
fairly long period to be utilized in financing developmental plans of the
Centre and State Governments and will also help in enhancing domestic household
financial savings in the country.
Kisan Vikas Patra (KVP)
– a certificate savings scheme was launched by the Government on 1st April,
1988. The scheme provided facility of unlimited investment by way of purchase
of certificates from post offices in various denominations. The maturity period
of the scheme when launched was 5 ½ years and the money invested doubled on
maturity. The scheme was very popular among the investors and the percentage
share of gross collections secured in KVP was in the range of 9 % to 29 %
against the total collections received under all National Savings Schemes in
the country. Gross collections under the scheme in the year 2010-11 were Rs.
21631.16 crores which was 9 % of the total gross collections during the year.
In the year of its closure, the scheme secured gross collections of Rs. 7575.95
crores (April 2011 to November 2011).
PIB
