Context

• In view of falling interest rates, the government has increased the time period by 1 month for doubling the money invested in Kisan Vikas Patra (KVP) to 9 years and 5 months.

Kisan Vikas Patra (KVP)

• KVP is a saving certificate scheme which was first launched in 1988 by India Post wherein invested money doubled during the maturity period.
• It was discontinued in 2011 and later reintroduced in 2014.It is considered a part of the National Small Savings Fund.
• The amount (Principal) invested in KVP would get doubled in 112 months. The rate of interest is 7.6% from 29th June 2019
• KVP certificates are available in the denominations of Rs 1000, Rs 5000, Rs 10000 and Rs 50000.
• The minimum amount that can be invested is Rs 1000. However, there is no upper limit on the purchase of KVPs.

Refund conditions

• KVP does not offer any income tax benefits to the investor.
• The amount of KVP can be withdrawn after 118 months (9 years and 10 months).The maturity period of a KVP is 2 years 6 months (30 months).
• Premature encashment of the KVP certificate is not permissible. The certificates can only be encashed in event of the death of the holder or forfeiture by a pledge or on the order of the courts.

Source;Economic Times