In a bid to encourage the habit of small savings among citizens, Union government plans to re-launch the once successful Kisan Vikas Patra (KVP) on Tuesday.
Union Finance Minister Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) in New Delhi on Tuesday in the presence of Ravi Shankar Prasad, Union Minister of Communication and IT and Jayant Sinha, Minister of State for Finance among others, said a PIB release.
Mr. Jaitley, in his budget speech had announced that KVP and National Savings Schemes (NSS) will be re-introduced.
The re-launched 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.
The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times.
The facility of transfer from one post office to another anywhere in India and of nomination will be available.
The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks.
KVPs have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months.
KVPs, originally launched on April, 1988, 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.
Gross collections under the scheme in the year 2010-11 were Rs. 21631.16 crores which was 9 % of the total gross collections during the year. In the year of its closure, the scheme secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).
