Kisan Vikas Patra Scheme 2023: Features, Qualifications, Tax Benefits, and More

In addition to postal communication services, India Post offers a range of financial services, including government savings initiatives. Kisan Vikas Patra is one such savings program. Because it provides them with a safe investment vehicle and an instrument that doubles their cash over time, it is very popular with lower income individuals. These kinds of savings plans are quite helpful in India, where many people lack the appropriate understanding of saving, particularly those in the lowest income bracket. This tool was designed to help farmers deal with losses in the field and save for the rainy season. Later on, everyone may use the instrument.

What is Kisan Vikas Patra?

India Post launched Kisan Vikas Patra in 1988 as a tiny savings program. This was primarily developed to help people develop the long-term saving habit. The program has undergone several amendments. The most recent one took effect on January 1, 2019, and it now has a 112-month duration, or 9 years and 4 months, with a 7.5% interest rate as of right now.

There is no maximum investment amount; one can make an investment of as little as Rs. 1000. The amount invested needs to be more than Rs 1000. The invested amount would double during the course of the 112-month tenure, and upon termination of the tenure, the same amount may be withdrawn.

How to purchase Kisan Vikas Patra?

It is possible to buy Kisan Vikas Patra from Departmental Post offices.

  • Locate a Departmental Post Office: Find the Departmental Post Office that is closest to you. These are often found throughout the majority of the nation’s communities.
  • Visit the Post Office: Visit the closest Departmental Post Office during business hours after you’ve located it.
  • Inquire about Kisan Vikas Patra: Ask questions concerning Kisan Vikas Patra by coming up to the counter. You will receive the relevant forms and details about the program from the postal workers.
  • Fill out the Application Form: Fill out the application with precise information. Personal information such your name, address, phone number, and the amount you plan to invest will be requested on the form.
  • Submit Required Documents: You could also be required to submit identifying documents, such a PAN card, Aadhar card, or other form of government-approved identification, with your application. Ensure that these are prepared.
  • Deposit the Amount: Pay the requested amount for an investment in Kisan Vikas Patra after completing the form and submitting the required paperwork. Generally speaking, payments can be made using cash, check, or demand draft in accordance with Post Office regulations.
  • Receive Certificate: Once the necessary paperwork is completed and the money is deposited, a Kisan Vikas Patra certificate will be issued in your name by the postal workers. The evidence of your investment is provided by this certificate.
  • Keep the Certificate Secure: The Kisan Vikas Patra certificate should be kept safe because it is required for any upcoming transactions, early withdrawals, and maturity amount claims.
  • Verify Details on the Certificate: Make sure that the information on the certificate—including the investment amount, the maturity time, and your personal details—is correct before you leave the post office.
  • Understand Maturity Terms: Learn about the Kisan Vikas Patra scheme’s conditions and maturity duration to determine when you can reinvest the profits or cash in your investment.
  • Seek Clarifications if Needed: Never hesitate to contact postal employees for help if you have any questions or need more information about the plan, interest rates, or any other relevant matters.

Features of Kisan Vikas Patra

The Government of India offers the San Vikas Patra (KVP) savings certificate system, which offers a set interest rate and promotes long-term savings. These are a few of its attributes:

  • Investment Period: The lock-in period for the KVP usually lasts between two years and six months and ten years. After a predetermined amount of time, the invested amount doubles.
  • Denominations: The denominations that it comes in are Rs. 1,000, Rs. 5,000, Rs. 10,000, and Rs. 50,000.
  • Interest Rate: The government sets the interest rate for KVP. It was around 7.5% compounded yearly, though actual rates may change over time.
  • Transferability: KVP certificates are transferable between individuals and between post offices within the nation.
  • Taxation: The interest earned on KVP is taxable even when there isn’t a tax benefit at the time of investment.
  • Maturity: The certificate holder receives both the invested money and the interest accrued upon maturity.
  • Nomination Facility: In the event of their absence, investors may choose a substitute to receive the maturity amount.
  • Risk Factor: Because the government supports KVP, it is a low-risk savings choice.
  • Availability: KVPs are available for purchase at Indian post offices.

Who can purchase Kisan Vikas Patra Certificate?

KVP can be purchased by anyone, both alone and jointly for two persons. Parents or guardians may also purchase the instrument for a minor child. Additionally, a nominee for one’s KVP account may be proposed. Furthermore, the issued certificate is totally transferable. The certificate is transferable to another individual. It can also be moved from the prior post office to a different one.

What is the lock-in period of withdrawing amount invested in Kisan Vikas Patra?

After the certificate is issued, it can only be cashed after a 30-month lock-in period of two years and five months. The amount cannot be taken out during this time unless the account holder passes away or receives a court order.

What is the interest amount earned on KVP?

The length of the investment determines the interest rate in KVP. Therefore, you will receive the interest amount based on a single interest rate if you invest for a period of time, say five years, and the interest rate stays the same during that time. The interest amount will be determined in accordance with any changes in interest rates that may occur during the investment period, as interest rates are prone to fluctuate. For instance, the interest rate on KVP was 7.3% prior to this change, but it is currently 7.5%. As a result, the interest amount was determined by factoring in the 7.3% since its implementation up until the most recent modification. The interest amount is computed with the current rate of 7.7% in mind. When the investment matures or the investor withdraws the money, the capital invested plus the interest earned over the entire investment period are paid. Compound interest is another factor that affects interest rates; the longer the tenure, the higher the interest rate.

Despite market swings, KVP guarantees returns. Upon investing in this instrument, one can be guaranteed to get a twofold amount at the conclusion of the term. There is no chance of losing money because it is a government program. It is an entirely risk-free financial tool. You will never experience a loss on the money you placed in KVP. Yes, the following table provides a summary of the main points of Kisan Vikas Patra:

Key Highlights Details
Interest Rate 7.5% (compounded annually)
Tenure 115 months
Investment Amount – Minimum: Rs. 1,000
– Maximum: No maximum limit
Tax Benefits Tax benefits up to Rs. 1.5 Lakh under Section 80C of the
Income Tax Act, 1961

When KVP certificate is issued and what is its tenure?

The KVP savings plan currently has a 112-month duration. The scheme will mature in 9 years and 4 months from the date of your investment in the instrument. If you pay with cash, the KVP certificate will be issued right away. In the event that a demand draft or check is used for payment, the certificate will be obtained upon the instrument’s clearance. The KVP certificate’s serial number, the holder’s information, the amount invested, the instrument’s maturity date, and the amount paid at maturity are all included on the certificate.

How much amount can be invested in Kisan Vikas Patra?

Under the initiative, a minimum investment of Rs 1,000 can be made. The maximum amount that can be invested is unrestricted. However, it is crucial to remember this if you are investing more than Rs. 50,000 in Kisan Vikas Patra. It must then be completed at the Head Post Office. Furthermore, in order to invest more than Rs. 50,000, PAN card data must be provided.

How to invest in KVP?

In order to participate in the KVP scheme, you must:

  • Visit the Post office that is closest to you, pick up a Form A, which is the scheme application, fill it out, and send it in with the required information. The form is also available online for download. The form to use if you are investing through an agent is Form-A1.
  • Additionally, you must turn in KYC documentation such as your passport, voter ID, Aadhar card, and PAN.
  • You will receive the KVP certificate after the department has verified the paperwork and everything has been accepted.

Who should invest in KVP?

As previously indicated, the program was first formally implemented for farmers and then opened to everyone. Thus, in case you’re seeking for a financial plan that provides –

  • Risk-free investment
  • Good interest rate
  • Easy-to-understand scheme
  • Protection of Capital, etc

After then, you can invest in this plan. More significantly, though, if you’re searching for plans that let you start small and don’t require a large initial investment, this is the one for you.
However, superior instruments like PPF, NSC, and others are accessible if you’re looking for ways to save on taxes.

Kisan Vikas Patra Premature Withdrawal

A KVP account may be withdrawn early under the following circumstances before two and a half years have passed since the account’s issuance date:

  • In the event of a joint account holder’s death, the KVP holder
  • A Gazette officer who is a pledgee takes control of the account.
  • A judge issues an order for the withdrawal.


Kisan Vikas Patra is a universal savings program. With an initial investment of just Rs. 1000, it provides access to the investment market. However, there is no upper limit on the total amount invested. Indian Post is the program’s operator; it is a government effort. Any post office in the nation can sell KVP, and the procedure is very easy to follow. The instrument has a 112 month term and the current interest rate is 7.7%. It is helpful for anyone searching for investment programs that offer a strong return and no market risk.

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