A Kisan Vikas Patra certificate can be transferred from one Post Office to the other or from one person to another
Transfer from One Post Office to Another: A Kisan Vikas Patra certificate can be transferred from one post office, from where it was originally bought to another post office. In order to transfer a KVP certificate, the investor must submit a handwritten consent to the officer at a concerned post office. The transferee must be a resident Indian and must be eligible to purchase the KVP certificates.
Transfer from One Person to Another: A KVP certificate can also be moved from one individual to another for which a written letter must be submitted to the Post Office for the same. The following conditions/specifications apply for the same:
- Transfer from name of deceased to his or her heir
- From one owner to the combined owners
- From combined owners to name of one of the owners
- From the owner to a judge of law and also to other individuals as ordered by a Court of Law
Kisan Vikas Patra Withdrawals
A Kisan Vikas Patra scheme can be closed before maturity. The principal along with the interest can be withdrawn. The period for premature withdrawal of KVP is after 2 years and 6 months from the date of issuance, which is also the lock-in period. To avail KVP pre-mature withdrawal, the holder must give in writing to the Post Office following which the amount will be given. KVP encashment is not allowed unless the KVP holder is deceased or only upon court orders.
Loan Against KVP
- A holder of Kisan Vikas Patra can avail a loan against the same. The following are the conditions for availing a loan against KVP:
- The loan applicant must have a Kisan Vikas Patra under his own name.
- The loan against KVP can be availed for business or personal purposes only. The loan cannot be availed for any speculative ones.
- Different banks have different charges and interest rates for loans against KVP. The charges vary from time to time and select banks may charge processing fee for loan grant.
The loan should be repaid within the tenure of KVP.
The margin and loan amount will be decided by the bank based on the KVP investment and maturity.
FAQs on KVP
I have lost my KVPs. What is the process to obtain a duplicate certificate?
To obtain a duplicate KVP certificate, you need to write to the Post Office of KVP issue requesting a duplicate certificate and attach the identity slip that was given at the time of issue. The identity slip will prove your ownership of KVPs. If you have lost or misplaced the identity slip, please contact the Post Office of issue for further instructions.
Can I invest Teachers’ Provident Fund in Kisan Vikas Patra scheme?
No, Teachers’ Provident Fund are not eligible to be invested in KVPs.
I have shifted to a different city. Can I encash my KVPs at the Post Offices here other than the Post Office of issue?
Kisan Vikas Patra can be encashed at any Post Office if your identity slip is accepted and if it is confirmed by the Post Office that you are the rightful owner. Ideally, it would be a lot easier for you if you could encash your KVP at the Post Office of issue.
Are Co-operative Societies and Co-operative Banks allowed to invest in Kisan Vikas Patra (KVP)?
No, Co-operative Societies and Co-operative Banks are not allowed to invest in Kisan Vikas Patra (KVP).
Can NRIs and HUFs invest in the KVP scheme?
No, KVP scheme is open only for resident individuals. NRIs and HUFs are not eligible to invest in Kisan Vikas Patra.
Are there any restrictions in terms of the amount that can be invested in Kisan Vikas Patra?
No, there are no restrictions in terms of the investment amount. There is, however, a minimum limit, which is Rs.1,000. Which means that one must invest a minimum of Rs.1,000 in the scheme. Thereafter, one can invest in denominations of Rs.1,000, Rs.5,000, Rs.10,000, and Rs.50,000. Also, there is no limit put on the number of certificates that an individual can hold.
What is the maturity period of Kisan Vikas Patra (KVP)?
The maturity period depends on the interest rate at which KVP is issued. The current interest rate was reduced from 7.6% to 6.9%. , the maturity period was also increased from 113 months to 124 months for KVP issued in the first quarter of FY 2020-21.
What is the current rate of interest that can be earned with this scheme?
The current rate of interest applicable on this scheme is 6.9% for Q1 of FY2020-21.
What will be the tax benefits for investing in Kisan Vikas Patra?
The returns received from the Kisan Vikas Patra are not eligible for any tax deductions under Section 80C of the Income Tax Act. However, withdrawals made after the maturity of the scheme are exempt from Tax Deducted at Source (TDS).
How long does it take for the Kisan Vikas Patra to be issued?
If an applicant has purchased a Kisan Vikas Patra by making payment for it in cash, they will be issued the certificate immediately. But, if the purchase has been made by cheque, pay order, or Demand Draft, then the date of issue of the certificate will be the date on which payment made using any of these instruments has been realised. However, if, despite making the payment, you have not been issued your KVP certificate, you will be provided with a provisional receipt for the same. When the actual certificate is issued at a later date, the applicant must exchange the provisional receipt with the KVP certificate. In such cases, the date of issue of the KVP shall be the date on which the provisional receipt had been issued.
Can Kisan Vikas Patra be transferred from one person to another?
Yes, a Kisan Vikas Patra can be easily transferred from one person to another. This can be done by providing a written letter of consent to the Post Master. In order to transfer, the original certificate holder should submit the original KVP certificate. The new certificate that is issued will bear the name of the transferee i.e. the person in whose name the certificate has been transferred. Transfer of certificate from one person to another will not be permitted if the Certificate is held either on behalf of a minor (till they are alive) or by a minor themselves.
What happens if the certificate is not encashed after the scheme reaches maturity?
In case the certificate is not encashed after the scheme reaches maturity, then the scheme holder will be entitled to the post office savings interest, at the rate applicable on the entire payable maturity amount, at the given time. If the certificate is encashed within a month after maturity of the scheme, no interest shall be paid.
Where can one encash a Kisan Vikas Patra (KVP)?
A kisan Vikas Patra can be encashed by the certificate holder at the bank or post office where the certificate was issued.
How will the maturity amount be paid?
On maturity of the scheme, the payable amount shall be credit directly to the bank/post office savings account of the certificate holder. Therefore, it is important that the certificate holder have a savings account when they are looking to encash their certificate.