FM to Re-launch Kisan Vikas Patra Today

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FM to Re-launch Kisan Vikas Patra Today
The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP). The Finance Minister in 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".

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.

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, said in the press release yesterday.

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, added further.

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Story first published: Tuesday, November 18, 2014, 9:14 [IST]
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