Savings Schemes
by 5paisa Research Team Last Updated: 2023-05-15T14:21:13+05:30

Summary of Kisan Vikas Patra (KVP)

Kisan Vikas Patra scheme is one of those means of saving that enables people to build money over time without worrying about any potential risks. It is currently one of the most well-liked savings programmes offered by the Indian government, with the goal of encouraging people to save money and develop good investing habits. 

People who want to invest in the Indira Vikas Patra or Kisan Vikas Patra plan must learn as much as they can about the scheme and become familiar with how it works in order to get the most out of it.




Type Of Scheme





Interest Rate


Tax Benefits



Amount Of Investment



Kisan Vikas Patra Benefits



Small Saving Certificate Scheme


To foster the concept of small savings in the nation. This will eventually help secure the future of investors.




One can receive the tax benefits under Section 80C of the Income Tax Act, 1961.


The minimum amount of investment is Rs. 1,000.
There is no maximum amount of investment though.



Complete security, tax benefits, long-term savings and fixed rate of interest. Loan collateral, fixed lock-in period and its nature to be non-transferable are also useful.



What Is Kisan Vikas Patra?

Kisan Vikas Patra (KVP) is a government initiative in India. The scheme was brought into action in the year 1988. As mentioned above, it was initiated with the mission of spreading the concept of small savings in India. This would gradually allow diverse investors to secure their financial future and aim for a better tomorrow. 

With the assistance of this small savings scheme, the people of India were encouraged to give importance to their long-term financial goals. At the fulfillment of the eligibility criteria of this scheme, one can easily invest in KVP. Sources also suggest that those who invest in this scheme can expect an investment to double in nearly ten years and four months. This implies that you can expect an investment to double in just 124 months of trusting the KVP scheme. Thus, you must take a look at the eligibility criteria and map out if you are a potential fit for the same. 

Amidst most low-risk mediums for investment, Kisan Vikas Patra has been deemed the safest. That is why investors can conveniently park their finances here for a specified amount of time. However, it is prudent that you learn about the KVP scheme accounts. This will help you make a more mindful investment.

What Are The Kisan Vikas Patra Scheme Accounts?

This scheme is classified into three different accounts. 

1. Single Holder Type

An adult receives a KVP certificate. The adult may even ask for a KVP certificate on behalf of a minor in this type of account. So, the certificate will be issued in the name of the adult seeking it. 

2. Joint A Type

Here, two different adults can seek the KVP certification under a joint account. So, during maturity, each of the account holders will get the payout. However, in exceptional circumstances like the death of one of the account holders, the other will receive the full amount. This implies that in such a case, the amount will be given to one of the account holders on behalf of the deceased party too. 

3. Joint B Type 

This one is similar to the Joint A Type. However, during the time of maturity, only one of the account holders will be able to receive the payout. You can gather more crucial information on it by tapping on Kisan Vikas Patra online. 

To be able to enroll for any of these accounts, it is imperative that you take a close look at the eligibility criteria of this scheme online. So, be careful. 

What Is The Eligibility Criteria For The Kisan Vikas Patra Scheme?

As an individual who wishes to adopt the KVP scheme online, you must tick off the eligibility criteria mentioned below. In the case of an individual not matching even a single eligibility criterion, the scheme may not be provided to them. So, prior to any KVP documentation work, you must take a look at Kisan Vikas Patra online. This will help you with more intricate information on the same. 

●    The applicant of this scheme must be a citizen of India. 
●    Adults may be able to apply for the KVP certification on behalf of a minor. 
●    Anyone who is applying for this scheme must be over 18 years of age. 

Benefits Of The KVP Plan

1. Fixed Rate Of Interest

A fixed rate of interest secures your chances of an investment double over a specified period of time. That is why people who invest in Kisan Vikas Patra are able to receive a good principal amount in nearly 124 months. 

2. Tax Benefits

When the KVP scheme is disbursed, no amount of deduction in the tax is observed. The amount is either paid as a whole to the account holder, or the TDS exemption takes place. So, for anyone wondering, “is Kisan Vikas Patra taxable” this is the answer. 

3. Long-term Savings

This scheme gives you the opportunity to start saving with a minimum deposit of Rs. 1,000. This is affordable and allows you to make long-term investments for long-term savings. Eventually, the value doubles up, which allows you to fulfill all your financial goals on time. 

4. Complete Security 

As a government-initiated scheme, Kisan Vikas Patra comes with a holistic sense of reliability. It allows diverse investors to deposit their finances in the right space that ensures maximum safety and security. Due to being a government-owned scheme, the risk of fraudulence here is also minimal. 

5. Fixed Lock-in Period 

Individuals who face difficulty making long-term savings can swiftly rely on Kisan Vikas Patra. Since it avails a fixed lock-in period, it restricts an individual from perturbing their savings and using them anywhere else. Thus, the fixed lock-in period can successfully help individuals to meet their future financial goals with minimal hindrance, as the savings cannot be broken easily. 

6. Collateral For Loan

When you wish to seek a loan, the process becomes easier with Kisan Vikas Patra. Since most institutions and banks accept the KVP certification, this can be great collateral prior to receiving the loan. 

7. Non-transferable 

The KVP benefits can only be received by the KVP account holder. In no circumstance can these benefits be transferred to someone else except in one condition. The other person who wishes to receive the KVP benefits of the account holder must have permission granted for the same. This must be approved by the postmaster of the Kisan Vikas Patra post office. 

Interest Rates Table For Post Office Savings Scheme

The Kisan Vikas Patra interest rate at present is 7.6% to 6.9%. Given below is a list of how the interest accrues during maturity when the investment occurs. 

Premature Payments After



2 years, 6 months later but before 3 years


3 years later before before 3 years, 6 months


3 years, 6 months later but before 4 years


4 years later or more but before 4 years, 6 months


4years, 6 months later but before 5 years


5 years later or more but before 5 years, 6 months


5 years, 6 months later but before 6 years


6 years later but before 6 years, 6 months


6 years, 6 months later but before 7 years


7 years later or more but before 7 years, 6 months


7 years, 6 months later but before 8 years


8 years later or more but before 8 years, 6 months



8 years, 6 months later or more but before 9 years


9 years later or more but prior to maturity


During maturity but after 9 years, 4 months

Amount Payable



Rs. 1,176



Rs. 1,215



Rs. 1,255



Rs. 1,296






Rs. 1,383



Rs. 1,429



Rs. 1,476



Rs. 1,524



Rs. 1,575



Rs. 1,626



Rs. 1,680




Rs. 1,735



Rs. 1,793



Rs. 2,000


Documents Required For Availing A Kisan Vikas Patra In 2022

Once an individual has met the eligibility criteria of Kisan Vikas Patra successfully, they will need to submit certain documents. The list of documents prescribed below is necessary to submit before the KVP scheme providers. Thus, you are requested to carry them at the time of application. 

●    Form A1, in case the application extension occurs via an agent. 
●    It is mandatory to submit Form A to an Indian Post Office branch. It may also be submitted to specified banks. 
●    Different KYC documentation, mainly Voters ID, PAN card, Driving license, and Aadhaar card, are mandatory to carry. You may also carry a Passport for proof of identification for the Kisan Vikas Patra. 

Premature Withdrawal

Any individual who wishes to withdraw their proceeds can either do it during the time of maturity or prior to the event. In case a person wishes to make withdrawals in the same year of the scheme purchase, they will not gain any amount of interest on the same. In fact, in certain cases, they will be charged a penalty for it. You can also conduct a Kisan Vikas Patra online check for more information on the same. 


Irrespective of whether one is holding a joint or a single account, the account holders must sign a Form C. This is for those who wish to nominate someone for their Kisan Vikas Patra online benefits. The account holder can choose to nominate any person of their choice. Once that is done, the nominee can enjoy all the KVP benefits without any hindrance. 

However, if the nomination is not selected during the KVP scheme purchase, the account holder can choose to nominate anyone after the scheme is bought. However, this must be done before the Kisan Vikas Patra maturity period occurs. Then, form C must be submitted on time. 

KVP Rules And Guidelines

Kisan Vikas Patra was relaunched by the Indian government in 2014. When this happened, the government brought forth a new set of rules and regulations for the scheme. These revamped rules and regulations must be followed by all individuals on a stringent basis. 

If needed, individuals may also use a Kisan Vikas Patra calculator to calculate their estimates better and see the amount of savings they can make in the coming years. This will help them to make mindful investments. 

●    There are three main certificates- Joint A type, Joint B type, and Single holder certificate. 
●    One can purchase an ‘N’ number of KVP certifications belonging to specific denominations.
●    Each KVP rule will strictly be known as “Kisan Vikas Patra Rules, 2014.” They will all be effective on the same day of their publication in the Official Gazette. 
●    Specific words in the rules will imply the following unless the context otherwise demands- 

1. Cash- Indian cash currency 
2. Act- Government Savings Certificate Act, 1959
3. Certificate- Kisan Vikas Patra
4. Post Office- Any departmental Indian post office that is carrying out the savings bank operations. 
5. Identity Slip- an identity slip that is provided to the certificate holder. 

●    The Kisan Vikas Patra Certification will be provided to the holders in a denomination of Rs. 1,000 and Rs. 5,000. Also, Rs. 10,000 and Rs. 50,000. 
●    Once the payment is complete, the individual will receive KVP certification immediately. 
●    A lost certificate or replacement of certification will need an application in the bank or the KVP post office for a new one.  
●    In case the certification is encashed, the holder needs to sign at the back of the certificate. This will help them to receive payments. 
●    In case there are any form of errors on the certification, the Postmaster General can rectify them. However, it is only possible if this does not cause any government-related financial loss. 

How To Transfer Kisan Vikas Patra Account?

You need to focus on the Kisan Vikas Patra post office scheme. Remember that the KVP certification can easily be transferred from one post office to another. So, if any investor wishes to transfer their KVP certification, it becomes prudent to provide hand-written consent. This must be issued to the officer at the specified post office. Make sure that the person transferring the certification is Indian. They may also fulfill all the eligibility requirements as prescribed for the KVP certification. 

In case the Kisan Vikas Patra certification is being transferred from one person to the other, the rules will be slightly different. Here, one needs to provide a handwritten letter that will be issued to the post office. 

These are the situations where such a circumstance must apply-

●    From a single owner to combined owners
●    From combined owners to a certain owner from a group of owners
●    Transfer of name of someone not alive anymore from his or her heir
●    From the owner to a law judge. 

Loan Against KVP

●    The Kisan Vikas Patra must be issued under their own name.
●    It is mandatory to repay the loan during the tenure of the Kisan Vikas Patra scheme. 
●    The loan and margin amount will both be discussed by the bank. This will rely on the KVP maturity and investment. 
●    It is important to keep in mind that one can only receive a loan against KVP for personal needs and business purposes only. 
●    There is a diverse loan against KVP charges. The interest rate loans differ the same way. 

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Frequently Asked Questions

You have to apply for a duplicate certificate in the bank or the post office where you did not receive the original certificate. 

Encashing KVP is possible only after maturity. The payable amount directly gets credited to the post office or bank savings account of the certificate holder. Since the KVP interest rate is quite high, investors can expect a substantial return. 

No fixed maximum investment limit exists for the KVP scheme. But a minimum amount of Rs 1000 is mandatory for the KVP scheme. 

No. Only resident individuals can invest in the KVP schemes. 

No, NRIs cannot purchase Kisan Vikas Patra. You will have to be an Indian citizen to own a KVP certificate. 

If you receive any returns, they will not be eligible for any form of tax deductions. This remains staunch under Section 80C of the Income Tax Act. But you need to keep in mind that any withdrawal that occurs after the maturity period is exempt from the TDS. 

Co-operative banks or co-operative societies are not eligible for investing in KVP. Rule 6 of the Kisan Vikas Patra scheme clearly mentions that co-operative banks are not permitted for this type of investment. 

In case you have bought the scheme using cash, you will receive the certificate on an immediate basis. However, if you have purchased it through a cheque system, then you will receive a date within which your certificate will be provided to you. 

You can encash a Kisan Vikas Certificate in a post office other than the one in which it was issued. However, some formalities need to be done if you want to encash your KVP in any other post office. 

You will either receive the amount via KVP post office savings or directly in your bank account. However, make sure you are the certificate holder for this purpose. 

Yes, the post office can issue a duplicate Kisan Vikas Patra certificate. You are not bound to claim the duplicate from the issuer post office branch of the original certificate. 

In this case, the certificate holder will fundamentally deserve the post office savings interest. This must be done at the payable rate of interest that is applicable on the whole payable maturity amount of a specified time period. 

The minimum age to invest in a KVP certificate is 18 years. But individuals over 18 years can purchase KVP certificates for minors.

No, you cannot invest in KVP online. However, the application forms are available online.