What is KVP (Kisan Vikas Patra)?

In 1988, the Indian Post Office introduced the Kisan Vikas Patra (KVP) as a saving scheme, which will double one-time investments in roughly 115 months when an individual purchases the certificate from July 1, 2023 onwards. 

The India Post introduced the small saving certificate scheme, KVP with a primary objective of encouraging long-term financial discipline amongst the people. The minimum amount to deposit is Rs. 1000 and is available in the values of Rs 1000, Rs 5000, Rs 10,000, and Rs 50,000 without an upper limit on the investment. KVP's interest rates change periodically based on the Finance Ministry's announcements. The current interest rate in the scheme, which is is compounded annually, is 7.5% p.a. Since Kisan Vikas Patra (KVP) doesn't fall under the Section 80C tax deduction, the returns provided by the scheme are taxable, however. When the maturity period is completed, the TDS is exempted from the withdrawal amount. The lock-up period for the investment is 2 ½ years. 

Initially, the KVP scheme was created for the farmers to enable saving for long-term, but now it is open to all. In the attempt of preventing possibilities of money laundering, the government in 2014 declared PAN Card proof to be a compulsory tool for investments above Rs. 50,000. If anyone desires to invest Rs. 10 lakhs or above, it has to then submit income proofs such as bank statements, salary slips, ITR document, etc. KVP is claimed to be a low-risk savings platform, where funds can be parked safely for a specific period. Moreover, along with the PAN Card, the government has also made it mandatory to submit Aadhaar number for proving the account holder's identity. 

Check total wealth you can create using KVP calculator.


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