What is Kisan Vikas Patra (KVP)
The UPA government at the center had discontinued the Kisan Vikas Patra (KVP) (when it was in power), the best medium of investment in India Post, but to promote small investments, the Narendra Modi government had started it again. So let’s know what KVP is after all.
Kisan Vikas Patra is a scheme of the Central Government. It is a long-term mode of investment. The benefit of which can be taken from the post office. It is invested in The minimum investment can be made up to Rs 100 in this.
What is the Benefit of This Scheme?
Through the Kisan Vikas Patra scheme, long-term investments are made in the post office. Its maturity period is eight years. In these eight years, the post office pays 8.40 percent interest on your investment.
It Also Has This Disadvantage
The government charges tax on the interest earned on your deposit deposited under the Kisan Vikas Patra.
It’s Simple and Easy
Under the Kisan Vikas Patra, you have the facility to transfer your accumulated money to someone close to you.
Why Was It Started?
This scheme was started to promote small savings, i.e., savings by low-income families.
Why Was It Closed in the First Place?
This scheme had gained popularity in recent years, but a flaw was discovered in it: when depositing money in the Kisan Vikas Patra scheme, you are not required to disclose your source of income.
And it can be gifted to anyone. Due to this, there was a possibility of the promotion of black money. That’s why it was closed.
Through the Kisan Vikas Patra scheme, long-term investments are made in the post office. Its maturity period is eight years. In these eight years, the post office pays 8.40 percent interest on your investment.
It also has this disadvantage. The government charges tax on the interest earned on your deposit deposited under the Kisan Vikas Patra.
These Are Also Advantages
It will also have the advantage that, under the Kisan Vikas Patra, you have the facility to transfer your accumulated money to someone close to you. You can transfer your deposits anytime, anywhere across the country.
On the other hand, the maturity period of Kisan Vikas Patra is eight years. But still, the advantage has been given that you will have complete freedom to cash your deposit after two and a half years.
Simple interest will be given for two and a half years on the Kisan Vikas Patra introduced in the new form. After this, the benefit of compound interest will start.
That means your money will grow twice as fast. If needed, you can also take a loan against the deposit amount in the Kisan Vikas Patra.
