Kisan Vikas Patra (KVP) Explained: Pre-mature Withdrawal Rules and Interest Rates Unveiled

Kisan Vikas Patra (KVP), a financial scheme tailored for farmers and savers alike, offers a fixed-rate investment avenue where lump sum amounts can potentially double over a specified duration.

Launched by the postal department, this scheme provides an avenue for long-term savings with a current interest rate of 7.5 percent.

Here, we delve into the specifics of Kisan Vikas Patra, including premature withdrawal rules and notable features.

Doubling Your Investment Timeline:

Investors can begin with a minimum deposit of Rs 1000 and in multiples of 100 thereafter. There exists no ceiling on the maximum investment amount.

One of the striking features of KVP is the potential to double your investment within a span of 115 months, thanks to the prevailing 7.5 percent interest rate.

Eligibility for Account Opening: Kisan Vikas Patra is accessible to a diverse audience:

1. Individual Adults: Any adult individual can open a single or joint account under this scheme.
2. Minors: Children above the age of 10 can also partake in the scheme, enabling them to start their financial journey early.
3. Guardians: A guardian can initiate an account on behalf of a minor or an individual of unsound mind.

To initiate the account, certain documents like Aadhaar card, proof of age, passport-sized photographs, and the KVP application form may be required.

Premature Withdrawal: A Closer Look: Premature withdrawal from the Kisan Vikas Patra account is permissible after a minimum period of 2 years and 6 months from the date of initial deposit.

However, specific conditions apply to such withdrawals:

1. Demise of Account Holders: In the unfortunate event of the demise of any or all account holders in a KVP or joint account, premature withdrawal is allowed.
2. Seizure by Mortgagee: In cases involving a Gazetted Officer, premature withdrawal may occur when the KVP is seized by the mortgagee.
3. Court Orders: Premature withdrawal can also be executed by order of the court.

These conditions ensure that while the option for premature withdrawal exists, it is subject to particular circumstances as outlined above.