Kisan Vikas Patra: For those who have invested in Kisan Vikas Patra (KVP), there are updates regarding transferring, pledging, or withdrawing the investment before maturity. The tenure of KVP is 115 months, which equals 9 years and 7 months. The investment doubles upon maturity at the current interest rate. Before investing, it’s important to understand the rules for withdrawal or transfer. Here are the key rules related to KVP:
1. Investment Amount
– The minimum investment in KVP is Rs 1,000 with no maximum limit.
– Any Indian citizen aged 10 years or above can have a KVP.
– An adult can open an account for a minor, which can be transferred upon reaching adulthood.
– Aadhaar is mandatory for investment, while PAN is needed for amounts over Rs 50,000. Income proof might be required for investments over Rs 10 lakh.
2. Premature Closure
– KVP cannot be closed at will. Premature closure is allowed in specific situations.
– Closure is permitted upon the account holder’s death, in joint accounts upon the death of one or both holders, or by court order or mortgagor seizure.
– In case of premature closure, simple interest is paid based on the Post Office Savings Account rate. After 2 years and 6 months, the principal amount plus interest is paid.
3. Pledging for Loan
KVP can be used as security for a secured loan by filling out the required form at the post office and providing an acceptance letter from the institution. It can be pledged to RBI, Government or Scheduled Bank, Co-operative Bank/Society, Government Company, Local Authority, and Housing Finance Company under specified conditions.
4. Transfer to Another Person
– KVP can be transferred to an eligible person, nominee, or legal heir upon the account holder’s death.
– In joint accounts, transfer is possible to the surviving account holder after one holder’s death.
– Transfers can also occur through court order or if the KVP is pledged.