Overview of the Kisan Vikas Patra Scheme – A Complete Guide!

The Kisan Vikas Patra scheme, a modest savings certificate program that was launched in 1988, sought to encourage individuals to develop discipline and long-term financial planning. The program’s name indicated that it was first designed with farmers in mind. The program is now open to anybody who meets the eligibility conditions.

An investor’s returns are guaranteed under this post office program, which has a fixed period of 115 months. Any India Post Office or specific public sector bank is where people can get a certificate for the program.

Highlights of the Kisan Vikas Patra

India Post first established the Kisan Vikas Patra in the year 1988. It was shut down in 2011, nevertheless, after the recommendation of a committee that the Indian government had appointed and that Shayamla Gopinath oversaw. However, Kisan Vikas Patra was reintroduced in 2014 when a new government was constituted. The Indian government would utilise the money raised through this plan to start assistance programs for farmers.

Savings plans offered by Kisan Vikas Patra can be acquired as certificates for as little as Rs. 1000. There is no upper limit. The certificates are offered in values of 1000, 5000, 10,000, and 50,000 rupees. Your investment will double in 100 months (8 years, 4 months), or 100 times. By completing the application form and paying the required money, you can obtain this certificate from the departmental Post Office that is closest to you. You can access the form online to download its hard copy.

Background information on the KVP

  • Kisan Vikas Patra (KVP) was established in the year 1988 to aid poor, rural, defenceless, and tribal households who can’t access conventional financial & banking systems.
  • In Hindi, farmers are referred to as Kisan, whereas advancement is called Vikas, and certificates are called Patra. The fact that it was developed to assist farmers in saving money for the future gives the program its name, Kisan Vikas Patra. Everyone now has access to it.
  • Under the Scheme, there is no distinction between members from rural and urban areas.
  • Its principal objective was to motivate individuals to cultivate long-term financial discipline.
  • When a committee headed by Ms. Shayamala Gopinath indicated that Kisan Vikas Patra (KVP) may be used for money laundering purposes, it was stopped in 2011. Initially, it was successful in the early years of its inception.
  • KVP would be revived in response to public demand and to revitalise small savings, according to the late finance minister Arun Jaitley, who made this announcement in his Budget Speech for 2014–15.
  • This was once again implemented as of November 18, 2014.

Different Kisan Vikas Patra (KVP) categories

The three divisions of Kisan Vikas Patra (KVP) are as follows:

Type1- joint A

Two adult members may each receive this. Under this category, a payout is made to either the account holders or the person who lives to see the plan’s maturity.

 Joint B of Type 2 

The payout is awarded to two adult members jointly and is only given to the one holder or who survives until the plan’s maturity.

Single-Holder Certificates in Category 3

The bearer of this may be an adult member acting alone or on behalf of a minor.

Major Characteristics of the KVP Scheme

The scheme’s primary characteristics are as follows:

Deposit Amount:

The number of accounts a single investor may open is not limited. One thousand rupees is the required minimum deposit, and further deposits can be made in multiples of one hundred rupees. The maximum investment in any one account or all accounts put together has no upper limit.

Payment Maturity

At maturity, the amount placed in the account doubles following the terms of the program. You would thus earn INR 2 lacs if you deposit INR 1 lakh in KVP 124 months from the date of your transaction. One can request a maturity payment using Form 2.

Investment Duration

KVP’s term is not set in stone. The interest rate that the government sometimes announces serves as its foundation. The investment term for this program is 10 years and 3 months (or 123 months), based on the current interest rate of 7% per year.

Account pledging

By filling out Form-4 and attaching a letter of approval from the pledgee, you can pledge an account. The entities to whom you may pledge the account are few in number. A list of these organisations may be seen below.

  • An appointed bank,
  • The Indian Reserve Bank,
  • Including a private or governmental business, a cooperative society
  • a local government
  • a federal agency,
  • a home financing firm that the Central Government has declared and that the National home Bank has approved.

Advantages of the KVP Scheme

For those with limited money who need safe investing options, KVP is a useful investment strategy. The following are its key advantages:

Zero Risk: This is the key benefit and the main reason why individuals invest in this plan. A guarantee from the government completely supports it. There is no danger of loss while investing in this method.

Investment simplicity: All it takes to invest in this plan is a quick trip to the neighbourhood post office. There aren’t any lengthy processes or forms to complete. This makes it a beneficial choice for investors who lack literacy.

Fixed Rate of Interest: The government has the authority to alter the post office plan’s interest rates on an annual basis. On the other hand, when you invest in KVP, you commit to the current interest rate for the duration of the investment. This is tremendously helpful given the declining interest rate environment that India has been experiencing for a while.

No Deduction of TAX: The maturity amount for Kisan Vikas Patra does not have any tax deducted at source (TDS) applied to it. However, you must include the tax on the accumulated interest in your annual tax return.

Options for liquidity: Compared to ULIP and ELSS, which have longer lock-in periods, KVP has a relatively low lock-in duration of 2.5 years.

Non-transferable: Only the KVP account holder is eligible to enjoy the KVP benefits. These advantages cannot ever be transferred to another person, with one exception. The other person must have the authorization to use the KVP benefits that the account holder is entitled to. The postmaster of the Kisan Vikas Patra post office must authorise this.

Period of Fixed Lock-In: In the long run, people who have trouble saving money might quickly rely on Kisan Vikas Patra. It prevents a person from moving their savings and utilising them elsewhere since it offers a set lock-in term. As a result, the set lock-in time can successfully assist people in achieving their future financial objectives with little difficulty because the savings cannot be readily destroyed.

Facility of Nomination :KVP provides a very user-friendly and straightforward nomination process. A nomination form may be picked up at the post office, and it just requires a full filling out by the subscriber. If the nominee is a minor, the account holder must provide a copy of the minor’s birth certificate and the minor’s date of birth.

Application Procedure for the KVS Scheme

  • You must pick up Form-A, the KVP registration form, from the nearby post office.
  • Fill out the form completely, and then deliver it to the closest post office when you’ve done so.
  • A second form will need to be completed and filed if the investment is done with the aid of an agent. The agent will fill the Form-A1 for you.
  • The Form-A1 & Form-A forms are both accessible for downloading on the authorised website. The forms can be downloaded by online users, filled out, and submitted.
  • For the Know-Your-Customer (KYC) procedure, you will need to provide a copy of one of your identity proofs. You may utilize a driver’s license, Aadhaar Card, a passport, a PAN Card, or a voter identification card.
  • Once your papers have been validated and the required deposits have been made, your KVP Certificate will be given. You can choose to get the KVP Certificate through email as well. The certificate will then be delivered to you via the registered email address.

Eligibility Condition for the Scheme

Eligibility Condition for the Scheme

You must check the eligibility boxes next to each need if you want to use the KVP online adoption program. The program might not be offered to someone who doesn’t meet even one of the qualifying requirements. Therefore, you must check KVP online before beginning any KVP paperwork task. You may use this to get more detailed information about the subject.

To participate in the KVP program, the following prerequisites must be satisfied:

  • The lower or minimum age required is 18 years.
  • The candidate must reside in India permanently.
  • A minor is not allowed to acquire KVP. However, KVP certificates can be purchased on behalf of a child by someone who is at least 18 years old.
  • A variety of credentials can be used to apply for a Kisan Vikas Patra, either in the applicant’s name, on behalf of a minor, or jointly by two persons.
  • KVP may be bought by a trust
  • HUFs and NRIs (non-residents of India) are not permitted to invest in KVP.

Required Documents to Apply for KVP Scheme

Once a person successfully meets Kisan Vikas Patra eligibility requirements, they must submit specific paperwork. You must present the list of required papers to the KVP scheme providers. As a result, you are asked to have them with you when you apply.

  • Form A must be turned in to an Indian Post Office branch, together with Form A1 if the application extension is handled by an agent. Additionally, it may be transmitted to particular banks.
  • The following KYC documents must always be carried: Aadhar Card, PAN card, driver’s license, and Voter ID. As additional identification for the KVP, you may carry a valid passport.


Banks and Indian Post Offices provide Vikas Patra certificates, often known as KVP or a small savings initiative. It is an excellent plan to assist the most vulnerable and underprivileged groups in achieving financial inclusion. This project assists the nation’s citizens in forming long-term investment and saving habits. The government should maintain a less unstable interest rate to keep the plan appealing.


Is it possible to just cash out Kisan Vikas Patra at the issuing post office?

A Kisan Vikas Certificate can be cashed at a different post office from the one where it was issued. You must complete a few procedures if you wish to use your KVP at another post office.

Can a minor purchase certificate from KVP?

The age requirement to purchase a KVP certificate is 18. However, people who are older than 18 can obtain KVP certificates for children.

Where can I get Kisan Vikas Patra (KVP)?

By physically or electronically completing the application form, one may acquire Kisan Vikas Patra (KVP) from post offices and public sector banks.

What do you mean by Kisan Vikas Patra Scheme?

The Kisan Vikas Patra (KVP) small savings certificate program doubles a single investment amount over the course of around 118 months.

How will you pay the maturity amount?

The money will be sent to your account directly or through the KVP post office savings. Nevertheless, ensure that you are the certificate holder for this use.

What tax advantages can invest in KVP provide?

If you get any returns, they won’t qualify for any tax deductions of any kind. This still holds true under Section 80C of the Income Tax Act. However, you must remember that any withdrawal made following the maturity period is free from the TDS.

What will happen if the certificate is not cashed when the plan reaches maturity?

In this situation, the certificate holder will inherently be entitled to the interest on post office savings. This has to be done at the relevant interest rate, which must be applied to the entire amount due at maturity within a given time frame.

Can I buy a Kisan Vikas Patra Certificate on my company's behalf?

No. The acquisition of a Kisan Vikas Patra Certificate is not permitted by business entities, like corporations or institutions. However, you may buy a Kisan Vikas Patra Certificate by yourself or with another person if you want.