How to redeem money from KVP account at Maturity?

The Kisan Vikas Patra (KVP) is a small saving scheme that was introduced by the Government of India. This small saving scheme is popular amongst the risk-averse investors. KVP is in the form of certificates, similar to a bank fixed deposit receipt, and they can be bought from India Post or via selected banks.

Any Indian adult who's a resident of India can obtain KVP in his/her name or on the behalf of a minor. Joint holding is permitted, too. There are two types:

• Joint A Type Certificate: This is issued jointly to two adults and it's payable to both holders jointly or to the heir.
• Joint B Type Certificate: This is issued simultaneously to two adults and it's payable to either of the holders jointly or to the heir.

Even Trusts can invest in KVP.

At maturity, the amount (principal and interest) will be credited to your savings bank account. The interest accrued on the amount is taxable. The following documents must be submitted by the applicant at the time of maturity of the certificate.

• Original KVP certificate
• Identity proof of the holder.
• The investor/nominee must sign behind the KVP on the receipt of encashed amount. In the case of a minor KVP Certificate holder attaining majority, the KVP Certificate shall be signed by such a person himself or herself on attestation by a known person to the Post Master.

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