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KVP (Kissan Vikas Patra)- Characteristic, Eligibility, Benifits and More

The Kisan Vikas Patra certificate programme is provided by the Indian Postal Service. A one-time investment doubles in around ten years (120 months). For instance, for the price of Rs. 10,000, a Kisan Vikas Patra will earn you a post-maturity corpus of Rs. In this essay, we'll look at the benefits and future potential of this tactic.

Tell us about the Kisan Vikas Patra.

The Kisan Vikas Patra, a small-savings certificate programme, was introduced by India Post in 1988. Its main objective is to encourage long-term financial discipline among people. the newest update, the program's duration is currently 120 months (10 years).

The minimum investment is Rs. 1,000; there is no limit. A one-time investment you make now will also be worth twice as much at the conclusion of the 120th month. Its original objective—hence the name—was to assist farmers in making long-term financial savings. Everyone now has access to it.

To counteract the risk of money laundering, the government mandated PAN Card evidence for investments exceeding Rs. 50,000 in 2014. You must furnish income documentation if your deposit is $10 lakh or more (salary slips, bank statements, ITR documents etc.).

It's a low-risk platform for saving money where you can keep your funds secure for a while. The Aadhaar number must also be submitted as evidence of the account holder's identify.

types of certificates available

For Kisan Vikas Patra, the following certificate types are available:

A certificate of the single holder type may be obtained by an adult in their own name, on behalf of a minor, or for themselves.

Joint Certificate of Type "A": Two adults may obtain a joint certificate of this type, which is payable to both holders jointly or to the survivor.

Joint "B" Type Certificate: This type of certificate is issued jointly to two people and is receivable to any of the holders or the survivor.

KVP accreditation

The following people are qualified to invest KVP:

The applicant must be a citizen of India.

The applicant must be at least 18 years old.

An adult may apply on behalf of a minor or a person with a mental illness.

Hindu Undivided Families (HUF) and Non-Resident Indians (NRIs) are ineligible to invest in KVP

Who should contribute to the KVP programme?

Every Indian citizen who is at least 18 years old may buy a Kisan Vikas Patra at the nearest post office. This appeals particularly to people from rural India who don't have bank accounts. A KVP can also be purchased for a minor or in conjunction with another adult. Don't forget to provide the minor's birthdate as well as the name of the parent or legal guardian. A Trust may buy one, but neither a HUF nor an NRI may.

KVP is a suitable alternative for risk-averse persons who have extra money they might not require in the near future. Your goals and risk tolerance will both be important considerations.

For instance, Public Provident Fund, National Savings Certificates, and tax-saving bank FD Schemes are good choices for anyone seeking for tax-saving solutions. If you are willing to accept a certain level of risk exposure, the Equity Linked Savings Plan is an alternative (ELSS). As a result, utilise your financial benefits.

Features & Benefits of Kisan Vikas Patra

Guarantee of profits

Regardless of market fluctuations, you will receive the set sum. Although the farming community was the target audience for this technique, the emphasis was on getting people to stock up for rainy days.

Financial security

It is a strategy for investing that has no risk and is unaffected by market risks. You will receive both your investment and any profits after the period is over.

The effective interest rate varies depending on the number of years invested in Kisan Vikas patra at the time of purchasing. For the fourth fiscal quarter of 2022–2023, which runs from January 1 to March 31, the current interest rate is 7.2% p.a., compounded annually. By compounding interest, you can raise the returns on your deposit.


When the Kisan Vikas Patra matures, which takes 120 months, you can benefit from the corpus. The maturity proceeds of KVP will continue to earn interest until you withdraw the funds.


Section 80C does not provide for a deduction, and the returns are subject to full taxation. Tax Deducted at Source (TDS) is not applicable to withdrawals made after the maturity period, nevertheless.

the early withdrawal policies

Notwithstanding the fact that the account matures after 120 months, a 30-month lock-in period is in place (2 years and six months). Early plan exit is not allowed unless there is a death of the account holder or a court order.

KVP is available for investment in denominations of Rs. 1,000, Rs. 5000, Rs. 10,000, and Rs. 50,000. It is simple and reasonably priced. There is no maximum. Please note that the only post office in the city that accepts Rs. 50,000 denominations is the main post office.

KVP certificate used to guarantee a loan

Your KVP certificate may be used as security or collateral when applying for secured loans. These loans feature an interest rate that is considerably lower.

The ability to nominate

At the post office, pick up a nomination form, and fill it out with the nominee's details. If the nominee is a minor, include their birthdate.

KVP certificates are issued

If you pay in cash, they'll give you your KVP Certificate right away; if you pay with a check, demand draught, or money order, you'll have to wait until the cash reaches the post office.

KVP Identification Slip

All of the following are included in this: the Kisan Vikas Patra Certificate, the KVP serial number, the amount, the maturity date, and the amount to be paid out on the maturity date.

How to invest in Kisan Vikas Patra and the required documentation

Purchasing Kisan Vikas Patra is simple, as is explained below.

First, obtain the form. Fill out an application form with the necessary information.

Step 2: Hand deliver the correctly filled-out documents to the bank or post office.

Step 3: If the investment in KVP is done through an agency, the agent must submit Form A1. These forms can be downloaded from the internet as well.

Step 4: Completing the Know Your Customer (KYC) process and submitting a copy of your identification (PAN, Aadhar, voter ID, driver's licence, or passport) along with your address are requirements.

Step 5: After the paperwork have been reviewed, you must submit the deposit. The payment may be made using cash, locally printed checks, pay orders, or demand draughts drawn in the postmaster's favour.

Step 6: You will get a KVP certificate straight away unless you pay with a demand draught, pay order, or check. You'll need to turn this in when you're an adult, so keep it secure. You can also ask for the certificate to be emailed to you.

In conclusion, if Kisan Vikas Patra seems like a smart choice and fits with your financial goals, invest right immediately. It can be handled and opened with ease. All you need to do is go to the postal facility once and have the money on hand.


An individual or joint holder of a certificate may make a nomination by submitting Form C with the required information at the time of purchase. If the certificate's lone holder or both joint holders pass away, you can select someone else to receive its advantages.

If the nomination is not made at the time of purchase, it may be made by the sole holder, joint holders, or surviving joint holder at any time after the certificate is acquired but before to maturity by submitting the duly filed Form C. It should be given to the postal or bank official where the certificate is recorded.

However, no nomination may be made if the certificate was acquired, is being held by, or is on behalf of a juvenile. If the holder or holders of the certificate make a nomination in this case, it will be revised or cancelled using Form D.

If you have numerous certificates registered on distinct dates, you must submit separate applications for each nomination, cancellation, or variation. Such a request will be noted on the certificate and become effective as of the registration date. Nominations made for the first time can be made without cost. The cost of each application that is subsequently nominated or withdrawn is Rs. 20.

Query and Response (FAQs)

Is it possible to transfer my KVP from the post office to the bank?

You can submit an application on Form B at your local post office or bank to transfer your certificate from one to another. The application must be signed by the holder or holders, with the exception of Joint 'A' type certificates, which permit one joint account holder to sign it in the case that the other has passed away.

Can I distribute a KVP certificate to another person?

A certificate may be transferred from one person to another under the following conditions with the consent of a bank or post office officer:

To the heir of a person who has passed away.

From the possessor to the judge or anybody else the judge specifies.

From the names of sole holders to those of joint holders, if there is only one transferee.

By the joint holders, to one of the joint holders.

Solo or joint holders to a distinct person.

Also, if the following conditions are satisfied, an authorised postal or bank official will only approve the transfer:

Whether the transferee is eligible to purchase the certificate under the conditions.

The transfer must fit into one of the following categories, regardless of whether it happens before or after at least a year has passed since the certificate was bought:

Transmission of natural love and affection to a near kin. Brothers, sisters, spouses, lineal ascendants or descendants, and other close relatives are considered in this context.

After death, transfer to the holder's nominee or heir.

transfer from the holder to the judge or another person the judge appoints.

Transfer at a designated bank, cooperative society, or RBI in accordance with the certificate's pledge.

The transfer will be made in the name of the surviving joint holder if one of them passes away.

A certificate that belongs to a minor or is held on their behalf cannot be transferred until the minor turns 18 years old.

Is the previous certificate still valid after being given to another person?

No, upon a successful transfer, a replacement certificate bearing the transferee's name and the same issuance date as the original certificate will be made accessible.

How soon will the KVP be doubled?

You will receive a return on your investment in KVP of 100% in 120 months, or 10 years.

Is KVP taxable?

The returns are totally taxable because KVP is not qualified for 80C deductions. However, withdrawals made after the maturity of the programme are exempt from Tax Deducted at Source (TDS).

As my KVP reaches maturity, how can I cash it out?

The due amount will be credited straight to the certificate holder's bank or post office savings account upon the scheme's maturity. Since it was issued at the same post office or bank, the KVP can be redeemed there. You must use the identity slip that was given to you at the time of issuing in order to pay out.

How do I purchase KVP online?

The following are the processes for buying KVP online:

Access your online banking account or the India Post website.

Choose "Kisan Vikas Patra (KVP)" and save the KVP Form A to your computer.

Type in your personal data.

Indicate your selected certificate type, payment method, and investment amount.

Fill the nomination information and submit it along with the KYC documents to the bank or post office.

The deposit is due after the paperwork have been reviewed. The payment may be made using cash, locally printed checks, pay orders, or demand draughts drawn in the postmaster's favour.

If you don't pay with a demand draught, pay order, or check, you'll get a KVP certificate right away. You'll need to turn this in when you're an adult, so keep it secure. You can also request to receive the certificate by email.

Can I use my KVP at a different Post Office whenever I relocate to a new city?

If your identity slip is accepted and the Post Office verifies that you started KVP, KVP can be paid at any Post Office. If you could redeem your KVP at the post office where it was issued, it would be considerably easier for you.

What occurs if KVP is not cashed when it reaches maturity?

If the KVP certificate is not cashed after it reaches maturity, you will be qualified to receive post office savings interest at the rate in force at the time on the entire payable maturity amount. If the certificate is redeemed within one month of the scheme's maturity, no interest will be paid.

Is KVP taxed if it matures?

Yes. KVP is taxed when it reaches maturity. There is no tax benefit with this strategy. The cumulative interest is paid yearly and is taxable as "income from other sources".

Kisan Vikas Patra has expressed interest Is it subject to taxes?

Ans. The interests on KVP are taxed on an accrual basis each fiscal year and are treated as "Income from Other Sources" for tax purposes.

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