Kisan Vikas Patrika To be Re-Launched
Money In the Bank: Kisan Vikas Patrika To be Re-Launched To Encourage Small Savings
The once successful Kisan Vikas Patrika will be re-launched again as the Government has decided to use this means to encourage small savings. The KVP or Kistan Vikas Patrika will now be available to investors in the denomination of INR 1,000; 5,000; 10,000 and 50,000. There will be no upper limit or ceiling on investment. Investment made in the Kisan VIkas Patrika will double in 100 months.
The move has been made to encourage the small savings among the citizens. The Union Government has made plans to re-launch the once successful and important KVP and made the announcement regarding this on 18th November, 2014. The reintroduction of the KVP and the National Savings Scheme had been announced during the budget speech of the FM. The re-launch is scheduled for the Tuesday, the 18th and investors will now have the option of placing money without any upper limit for the same.
Conditions for Issuing the KVP
Certificates can be issued in single or joint names and they can be transferred to another person(s) from one numerous times. Facility of transfer from the post offices and nomination anywhere in India will also be made available.
The certificate can also be pledged as a security to get loans from banks. In other cases, security be required to be deposited. Certificates will also be sold through designated branches of nationalised banks though currently only post offices are involved in the transactions.
KVPs also have special and unique liquidity features, wherein an investor can encash certificates following a lock in period of 2 years and 6 months and following this, in any block of 6 months on predetermined maturity value. Investments made via this certificate will therefore double in 100 months.
History of the Kisan VIkas Patrika
Kisan Vikas Patrikas were launched originally in April in the year 1988. They were very popular among investors. Percentage share of gross collections secured for this system of savings ranged from 9 to 29 percent as against total collections in the National Savings Scheme of the nation.In the year of its closure in 2011 November, the scheme for savings secured gross collections of 7575.95 crores.
This national certificate savings scheme is a good way to ensure that people from economically weaker sections of society do not get duped by the ponzi schemes that are coming about in recent times.
"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 due to slowdown in the economy. It is, therefore, necessary to encourage people to save more," Finance Minister Arun Jaitley was quoted as saying during the launch of the revamped KVP.
KVP would serve two purposes, the FM said:
• It would help poor investors to channelise their savings towards trusted and reputed government scheme instead of some ponzi schemes, where hard earned savings disappears.
• "Secondly, there is an urgent need to raise savings in the country...These savings are then used for nation building. Such saving instrument not only earn interest but help in development of the country," he said.
