What is Kisan Vikas Patra Scheme?
Kisan Vikas Patra (KVP) is a savings scheme in India that is primarily targeted at farmers. It is a small savings instrument offered by the Indian government. Some Characteristics are:
- Purpose: Kisan Vikas Patra is designed to encourage long-term savings among farmers and provide them with a safe and secure investment option.
- Investment Period: The scheme has a fixed maturity period, and the investment doubles in a predetermined number of years. The exact doubling period may vary, and investors are made aware of it at the time of investment.
- Interest Rate: Kisan Vikas Patra offers a fixed interest rate that is compounded annually. The interest rate is set by the government and may be subject to changes.
- Denominations: KVP is available in different denominations, allowing investors to choose the amount that suits their financial capacity.
- Tax Implications: While Kisan Vikas Patra does not offer any tax benefits, the interest earned is taxable. Investors need to include the interest income in their taxable income for the relevant financial year.
Kisan Vikas Patra Scheme
Kisan Vikas Patra Scheme: Kisan Vikas Patra Scheme (KVP) was launched in 1988, to assist poor, vulnerable, rural, and tribal families that lacked access to mainstream banking and financial systems. Farmers are referred to as Kisan in Hindi, whereas development is referred to as Vikas and certificates as Patra. The fact is that it was designed to assist farmers in saving money for the future. No distinction is made between participants from urban and rural regions under the scheme. It was successful in the beginning, but in 2011 it was abandoned as it may be used for money laundering. To address public demand and to resurrect little savings, the Finance Minister declared in 2014–15 that Kisan Vikas Patra (KVP) will be reinstated. This was reintroduced on November 18, 2014, with effect.
In this article, you will read about the Kisan Vikas Patra Scheme, its features, types, eligibility, maturity period, benefits, etc.
Table of Content
- What is Kisan Vikas Patra Scheme?
- Features of the Kisan Vikas Patra Scheme
- Kisan Vikas Patra Rate of Interest
- Types of Kisan Vikas Patra
- Eligibility of the Kisan Vikas Patra Scheme
- Maturity Period of Kisan Vikas Patra Scheme
- Benefits of Kisan Vikas Patra Scheme
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