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.
MINISTRY OF FINANCE
(Department of Economic Affairs)
New Delhi, the 23rd September, 2014
G..S.R. 705(E).—In exercise of the powers conferred by section 12 of the Government Savings Certificates Act
, 1959 (46 of 1959) and in supersession of the Kisan Vikas Patra Rules, 1988 except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely:—
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, –
(a) “Act” means the Government Savings Certificates Act, 1959 (46 of 1959);
(b) “cash” means the cash in Indian currency;
(c) “Certificate” means the Kisan Vikas Patra;
(d) “Form” means a Form annexed to these rules;
(e) “Post Office” means any departmental post office in India doing Savings
(f) “Bank” means any branch of State
Bank of India and its associate banks, designated branches of
Nationalised and other commercial banks, authorized for Public Provident Fund Scheme;
(g) words and expressions used herein and not defined but defined in
Post Office Savings Certificate
Rules, 1960 shall have the meanings respectively assigned to them in those rules.
3. Application of Post Office Savings Certificate Rules, 1960
.—The provisions of the
Post Office Savings Certificate Rules, 1960 shall, so far as may be, apply in relation to matters for which no provision has been made in these rules.
4. Denomination of Certificates.—The Kisan Vikas Patra shall be issued in denominations of Rs. 1,000/-, Rs. 5,000/-, Rs.10,000/- and Rs. 50,000/-.
5. Purchase of Certificate.—Any number of Certificates of the denominations specified in rule 4 may be purchased.
6. Type of Certificates and issue thereof.—
(1) The Certificates shall be of the following types, namely :—
(a) Single holder type Certificates;
(b) Joint ‘A’ type Certificates; and
(c) Joint ‘B’ type Certificates.
(2) (a) A single holder type Certificate may be issued to –
(a) an adult for himself or on behalf of a minor or to a minor;
(b) A Joint ‘A’ type Certificate may be issued jointly to two adults payable to both holders jointly or to the survivor.
(c) A Joint ‘B’ type Certificates may be issued jointly to two adults payable to either of the holders or to the survivor.
7. Procedure for purchase of Certificate.—
(1) Any person or persons specified in rule 6, desiring to purchase a Certificate, shall present an application in a Form A either in person or through an authorised agent of the small savings schemes at a Post Office or
(2) Payment for the purchase of a Certificate may be made to a Post Office or
Bank in any of the following modes, namely:—
(i) by cash; or
(ii) by locally executed cheque, pay order or demand draft drawn in favour of the Post Master; or
(iii) 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
8. Issue of Certificates.—(1) On payment being made under rule 7, except where payment is made by a cheque, pay order or demand draft, a Certificate shall be issued immediately and the date of such Certificate shall be the date of payment.