November 18, 2014
Kalaivaraikalai
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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
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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
New Delhi, November 17, 2014
Kartika 26, 1936
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).
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