KVP (Kisan Vikas Patra) premature closure/early withdrawal

Backed by the Indian Government, the Kisan Vikas Patra (KVP) is a savings scheme that can be obtained in post offices across India. While investing in this scheme, a KVP certificate will be issued in the name of the investor. On the invested amount, this savings scheme offers large returns after its maturity period via high-interest rate. 

KVP can be closed even before the maturity period. The principal amount along with the interest can be withdrawn after 2 years 6 months (30 months) from the date of issuance, this is also the minimum lock-in period.  

For doing KVP premature closure/early withdrawal, the KVP holder should write to the Post Office informing on the same and what amount it'll obtain. Encashment of KVP isn't allowed unless the holder has expired or only upon the court orders.

However, Kisan Vikas Patra can be prematurely encashed before its maturity under the following circumstances:

If you desire to encash the KVP at a different post office, you'll have to complete some formalities. To encash a KVP, submit your identity slip, which was given to you at the time of purchasing the KVP certificate. To encash the KVP certificate, put it in writing, addressing to the concerned post office, along with your identity slip.

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