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Doubling Rs 50,000, RS 10,000, Rs 5000 with Post Office KVP: Time, Rate, Rules Explained

Rajeev Kumar
Post Office Kisav Vikas patra Interest Rate, Rules, Explained

Post Office Kisan Vikas Patra(KVP) Rules: You can buy Post Office KVP in denominations of Rs 1000, Rs 5,000, Rs 10,000 and Rs 50,000. There is no limit on the amount that you can invest in KVP, however, it cannot be less than Rs 1000. The KVP investment doubles within a specified time period. Currently, the doubling period for KVP is 113 months. In other words, the value of your investment in KVP will double in 113 months (9 years, 5 months). The current interest rate on KVP is 7.6 per cent, which is compounded annually.

How to invest in KVP, redeem

Payment for purchase of KVP can be made in cash, by locally executed cheque, pay order or demand draft drawn in favour of the Postmaster. It can also be done by presenting a duly signed withdrawal form or cheque together with the passbook for withdrawal from Savings Account standing in credit of the purchaser at the same Post Office or Bank.

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The KVP can be encashed only at the Post Office or Bank of its issue. KVP rules 2014 say, "…a certificate may be encashed at any other Post Office or Bank if the Officer-in-charge of that Post  Office or Bank is satisfied on verification from the Post Office or Bank of issue that the person presenting the Certificate for encashment is entitled thereto."

KVP premature withdrawal

Premature encashment of KVP is possible after 2.5 years under the following circumstances:

– In case of death of the certificate holder, or of any of the holders in case of joint holders.

– Forfeiture by a pledgee being Gazetted Government Officer,

– On order by a court of law.

KVP Transfer

A KVP can be transferred from one person to another with the consent in writing of an officer of post office or Bank as specified below:

*Source: KVP Rules, 2014

In case a KVP is lost, stoner, destroyed or mutilated, the certificate holder can apply for re-issue of a duplicate.

Types of Kisan Vikas Patra

– Single Holder Type Certificates

– Joint 'A' Type Certificates

– Joint 'B' Type Certificates