In view of falling interest rates, the government has increased the time period by 1 month for doubling the money invested in Kisan Vikas Patra (KVP) to 9 years and 5 months.
The funds parked in KVP with effect from July 1, 2019, will double in “9 years and 5 months” or 113 months as against “9 years and 4 months” or 112 months earlier, the Finance Ministry said while amending the Kisan Vikas Patra Rules, 2014.
The interest rate on KVP has been lowered to 7.6% for the September quarter, compared with 7.7% in the April-June period. The interest rates on the government’s small savings instruments are revised every quarter.
Individuals can invest their money in KVP in multiples of ₹1,000 and there is no upper ceiling for investments. KVPs are issued in denominations of ₹1,000, ₹5,000, ₹10,000 and ₹50,000.
KVPs are sold at post offices and the certificate can be encashed after two-and-a-half years from the date of issue.
In case of premature withdrawal after two-and-a-half years, a person will get ₹1,173 for every ₹1,000 invested. After 3 years, the amount will go up to ₹1,211 and after three-and-a-half years, the amount would be ₹1,251.
