Modi govt has notified plan that guarantees double money! Features explained

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Updated: Jan 04, 2020 2:43 PM

Kisan Vikas Patra Scheme 2019: KVP account can be pledged or transferred as security, on an application made by the depositor in Form-4 supported with acceptance letter from the pledgee

Kisan Vikas Patra Scheme 2019 features, benefitsKisan Vikas Patra Scheme 2019: Check features, benefits. Representational image

The Central government recently notified Kisan Vikas Patra (KVP) Scheme, 2019 vide GSR 920 (E) dated December 12, 2019. The new scheme has replaced Kisan Vikas Patra Rules, 2014. KVP rules guarantees to double your investment in nine years and five months. So, if you deposit Rs 50,000 in KVP today (January 4, 2020), it will become double after nine years and five months. You will be able to withdraw the double amount (Rs 1,00,000) after June 4, 2029.

Deposit limit: You can deposit any amount in multiples of Rs 100 but the minimum limit is Rs 1000. There is no maximum limit for deposit in a KVP account, or in accounts held by an account holder. You can also open any number of KVP account you want.

Deposit on maturity: The new scheme rules say, “Deposits made in the account shall double on maturity. Maturity period of an account shall be nine years and five months commencing on the date of deposit. Amount of maturity may be repaid to the account holder on an application in Form-2 submitted to the accounts office.”

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KVP comes under the small savings schemes promoted by the government. Interest rates on these schemes are revised quarterly by the government. The current interest rate on KVP is 7.6 per cent. If this changes in future, the time required for doubling the deposit will also vary accordingly.

KVP certificates can be purchased from any Departmental Post Office by an adult for himself or on behalf of a minor or by two adults.

Premature closure of account: The KVP account can be prematurely closed by the account holder by making an application in Form-3 to the accounts office, at any time before maturity. The circumstances under which the account can be prematurely closed include death of the account holder in a single account, or any or all the account holders in a joint account; on forfeiture by a pledgee, being a Gazetted Officer; when ordered by a court etc.

KVP account can be pledged or transferred as security, on an application made by the depositor in Form-4 supported with acceptance letter from the pledgee

Small savings schemes accounts can be opened at the post office. Some commercial banks also allow opening of accounts under some of these schemes like PPF, Sukanya Samriddhi Yojana, Senior Citizen’s Savings Scheme etc.

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