The government on Tuesday relaunched the erstwhile popular small savings instrument Kisan Vikas Patra (KVP) to encourage people to save more and keep them off fraudulent schemes.
“In the last 2-3 years, savings rate in country has declined from a record high of 36.8 per cent to below 30 per cent. It is, therefore, necessary to encourage people to save more” Finance Minister Arun Jaitley said during the launch of the revamped Kisan Vikas Patra. The collections under the scheme would also help the government mobilise funds for financing developmental plans.
Kisan Vikas Patra is a saving scheme that was announced by the Government of India that doubles the money invested in eight years and seven months. The Directorate of Small Savings Government of India, sells these saving bonds through all Post Offices in the country so that the scheme can be accessed by citizens from all over the country. A KVP can be encashed after two and a half years from the date of issue at the value it has been bought and the interest accrued for the period.
The “kisan” in Kisan Vikas Patra does not mean that only farmers can buy these saving certificates but means that the revenue mobilized by this scheme will be used by the Government of India in welfare schemes for farmers. Any individual can safely invest and save their money in the form of Kisan Vikas Patra.
The Notification relaunching Kisan Vikas Patra has been partly reproduced below. The full notification can be downloaded through the link provided at the end of the post.
(Department of Economic Affairs)
1. Short title and commencement.—
(1) These rules may be called the Kisan Vikas Patra Rules, 2014.
(2)They shall come into force on the day of their publication in the Official Gazette.
2. Definitions.—In these rules, unless the context otherwise requires, –