The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) on 18.11.2014

The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) on 18.11.2014

The Union Finance Minister Shri Arun Jaitley will re-launch the Kisan Vikas Patra (KVP) here tomorrow in the presence of Shri Ravi Shankar Prasad, Union Minister of Communication and IT and Shri Jayant Sinha, Minister of State for Finance among others. Increasing savings rate in the economy was one of the priorities of the new Government on assuming charge. In view of the popular demand and to revitalize Small Savings, the Finance Minister in para 27 of his Budget Speech announced that "Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest". Accordingly, it is decided to reintroduce Kisan Vikas Patras (KVPs). KYC norms regarding all National Savings Schemes (NSS) are now applicable in post offices and banks w.e.f. January, 2012.

The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10,000 and 50,000, with no upper ceiling on investment. The certificates can be issued in single or joint names and can be transferred from one person to any other person / persons, multiple times. The facility of transfer from one post office to another anywhere in India and of nomination will be available. The certificate can also be pledged as security to avail loans from the banks and in other case where security is required to be deposited. Initially the certificates will be sold through post offices, but the same will soon be made available to the investing public through designated branches of nationalised banks. 

Kisan Vikas Patras have unique liquidity feature, where an investor can, if he so desires, encash his certificates after the lock-in period of 2 years and 6 months and thereafter in any block of six months on pre-determined maturity value. The investment made in the certificate will double in 100 months. 

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

GSA- 705(E).—ln exercise of the powers conferred by section 12 of the Government Saving Certificates Act, 1959 (46 of 1959) and in suppression 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 Bank work;

(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 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 -

(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.

1.    Procedure for purchase of Certificate.—(i ) 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 Bank.

(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 Bank.

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.

(2) Where payment for the purchase of a Certificate is made by cheque, pay order or demand draft, the Certificate shall not be issued before the proceeds of the cheque, pay order or demand draft, as the case may be, are realised and the date of such Certificate shall be date of encashment of the cheque, pay order or demand draft, as the case may be.

(3) If for any reason a Certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later be exchanged for a Certificate and in such a case the date of Certificate shall be the date of provisional receipt.

9. Transfer from Post Office to Bank and vice-versa.–

(1) A Certificate may be transferred from a Post Office or Bank at which it stands registered, to any other Post Office or Bank to the holder or holders making an application in Form B either at Post Office or Bank.

(2) Every such application shall be signed by the holder or holders of the Certificate :

Provided that in the case of Joint ‘A’ type Certificate or Joint ‘B’ type Certificate, the application may be signed by one of the joint holders if the other is dead.

10. Transfer of Certificate from one person to another.—

(1) A Certificate may be transferred from one person to another with the consent in writing to an officer of the Post Office or Bank as specified in the Table below (hereinafter referred to in these rules as authorised Post Master or Bank Officer)