Indian Govt To Relaunch Kisan Vikas Patra Today, With Some New Features

The government will relaunch the Kisan Vikas Patra (KVP) scheme today (Tuesday) to keep investors away from gold. The government has also introduced some new features to increase savings that fell to 7.1% of the GDP in FY2012-13 from over 12% in FY2009-10. Investors’ money will be doubled in 100 months and there won’t be any upper limit on investment. However, there will be a minimum denomination of Rs 1,000.

"Kisan Vikas Patra was a popular instrument among small savers. I plan to reintroduce the instrument to encourage people... to invest in this instrument," Finance Minister Arun Jaitley had said in his Budget speech in July. The UPA government had closed this scheme in 2011.

"The Kisan Vikas Patra scheme will safeguard small investors from fraudulent schemes. Re-launched KVP will be available to investors in denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000, with no ceiling on investment," the Finance Ministry said in a statement.

The KVP certificates can be bought in an individual’s name or joint names, and can also be transferred from one person to another or from one post office to another.

"With a maturity period of eight years and four months, the collections under the scheme will be available with the government for a fairly long period to be utilised in financing developmental plans of the Centre and state governments and will also help in enhancing domestic household financial savings in the country," the ministry added.