Kisan Vikas Patra (KVP) Interest Rates 2023 in India

The Indian Postal Service offers a certificate program called Kisan Vikas Patra. In around 10 years and 4 months, it doubles a one-time investment (124 months). For example, a Kisan Vikas Patra will net you a Rs. 20,000 postmaturity fund for Rs. 10,000. We shall examine the advantages and prospects of this strategy in this blog.

About Kisan Vikas Patra

In 1988, India Post unveiled the Kisan Vikas Patra, a small-savings certificate program. Its main goal is to promote people's long-term financial discipline. According to the most recent report, the scheme's duration is now 124 months (10 years & 4 months).

There is no maximum investment value; the least is Rs. 1000. Additionally, if you make a lump-sum investment now, it will be worth twice as much after the 124th month. Its original purpose was to help farmers save money over the long term, thus the name. It is now accessible to everyone.

The government made rule of PAN Card proof mandatory for investments exceeding Rs. 50,000 in 2014 to combat the threat of money laundering. You must provide income documentation for deposits of Rs. 10 lakh and higher (salary slips, bank statements, ITR documents, etc.).

It's a low-risk savings platform where you can put your money in a secure place for a while. Additionally, the Aadhaar number must be provided to verify the account holder's identification.

Categories of Available Certificates

The common types of Kisan Vikas Patra certificates are available:

  • Single Holder Type Certificate: An adult may receive a certificate in their own name, on behalf of a minor, or for themselves.
  • Joint "A" Form Certificate: This kind of certificate is given to two people jointly and is granted to both holders jointly or to the survivor.
  • Joint "B" Type Certificate: This kind of certificate is given out to two adults jointly and can be paid to either holders or the survivor.

KVP Qualification

The following people are qualified to invest in KVP:

  • The candidate needs to be an Indian national.
  • The candidate must be older than 18 years old.
  • Hindu Undivided Families (HUF) can apply with the help of an adult, and Non-Resident 
  • Indians (NRIs) cannot invest in KVP.
  • A trustee can acquire a KVP certificate.

How to Invest In KVP?

Fill out a form at any Post Office to acquire a Kisan Vikas Patra, then submit it along with your identification documents and payment in cash, check, or demand draft. A Kisan Vikas Patra certificate bearing your name, the amount, the maturity date, and the amount will be issued by the Post Office on the maturity day.

Who Ought to Invest in the KVP Program?

A Kisan Vikas Patra can be purchased at the closest post office by any Indian citizen at least 18 years old. People from rural India who don't have bank accounts are especially drawn to this. A KVP can also be purchased jointly with another adult or for a minor. Don't overlook providing the minor's birthdate and the parent or guardian's name. A HUF or an NRI cannot purchase one; however, a Trust may.

KVP is a wise investment for risk-averse people with the extra cash they might not need soon. Your volatility and objectives will all be factors.

As an illustration, preferable options for those looking for tax-saving plans include Public Provident Funds, National Savings Certificates, and tax-saving bank FD Schemes. The Equity Linked Savings Scheme is an option if you are comfortable with certain risk tolerance.

Required Documents to Obtain a Kisan Vikas Patra Certificate

To obtain a KVP certificate, the candidate must provide duplicates of the following documents:

  • (Aadhaar card/PAN/Voter ID card/Driving License/Passport) Identity evidence for the KYC process.
  • Application for KVP.
  • Address Evidence.
  • Certificate of Birth Date.

You must either obtain the application form straight from the Post Office or download it online in case of applying for a Kisan Vikas Patra certificate. This form must be completed and turned in to the post office. A fast link to the Kisan Vikas Patra Form is provided below:

Characteristics and Advantages of Kisan Vikas Patra

Refund promises

You will receive the specified amount, notwithstanding changes in the market. The goal of this program was to encourage farmers to save money because it was established for them by keeping it in mind.

Monetary Safety

It is a risk-free investment strategy that is not impacted by market volatility. You will get the investment and profits when the term is through.


The actual interest rate changes based on the number of years invested in Kisan Vikas Patra at the time of purchase. For the quarter running from July 1 to September 30, 2021, the present interest rate is 6.9% per annum, compounded annually. You can increase the returns on your deposit by compounding the interest.


You can reap the benefits of the fund when the Kisan Vikas Patra matures, after 124 months. Until you remove the money, the maturity proceeds of KVP will keep accruing interest.


It is not deductible under section 80C, and the returns are fully taxed. Tax Deducted at Source (TDS) does not apply to withdrawals made after the maturity period.

Premature Withdrawal Guidelines

The lock-in period is 30 months despite the account maturing after 124 months. Except for the account holder's death or court order, early plan exit is not permitted.

Easy and Affordable

KVP can be purchased for investment in denominations of Rs. 1000, Rs. 5000, Rs. 10,000, and Rs. 50,000. There is no upper bound. Please be aware that only the city's post office offers denominations of Rs. 50,000.

Loan Secured By A KVP Certificate

Your KVP certificate may be used as security or collateral when applying for secured loans. Such loans have a relatively lower interest rate.

Facility For Nomination

Pick up a nomination form at the post office and complete it with the nominee's details. Include the nominee's birthdate if they are a minor.

Issuance Of KVP Certificates

They immediately issue the KVP Certificate if payment is made in cash. Additionally, you must wait until the money has passed at the post office if you are using a cheque, demand draft, or money order.

Identity Slip for KVP

The Kisan Vikas Patra Certificate, the KVP serial number, the value, the maturity date, and the sum to be obtained on the date of maturity are all included in this.

How to Create a KVP Account Online

By following the instructions listed below, you can create a KVP account online:

  • Access DOP online banking.
  • Choose "New Requests" by clicking the "Service Requests" link under "General Services."
  • "KVP Account - Open a KVP Account (For KVP)" should be chosen.
  • Choose your debit account that is associated with your PO Savings account and insert the KVP minimum deposit amount.
  • To review and accept the terms and conditions, click "Click Here," and then complete the online application.
  • Click "Submit," input the transaction password, and then read or download the deposit receipt.

In conclusion, make an investment right away if Kisan Vikas Patra appears like a wise choice and aligns with your financial objectives. It is manageable and simple to open. All you have to do is have the money on hand and go to the postal facility once.

Calculator for the Kisan Vikas Patra

People can compute the maturity amount after a set amount of time from the date of issuance using one of the various Kisan Vikas Patra Calculators that are readily available online. These calculators just need the invested amount and the investment date. You may presently earn 6.9% interest using this program.

The interest in the Kisan Vikas Patra is so great that the value of the Kisan Vikas Patra doubled in about eight years and seven months. The only drawback, albeit minor, is that taxation will apply to the income derived from interest from the Kisan Vikas Patra. However, the relevant tax is not withheld at the source, and the KVP account holder may use the entire amount.


By completing Form C at the point of purchase with the necessary information, a certificate holder, whether an individual or joint holder, may make a nomination. You can designate anyone to inherit the advantages of the certificate in the case that the certificate's sole holder or both joint holders pass away.

Suppose the nomination is not done at the time of acquisition. In that case, it may be made at any time following the acquisition of the certificate but prior to maturity by the single holder, joint holders, or the surviving joint holder by completing the properly filled Form C. The postal or bank official where the certificate is registered should receive it.

Nevertheless, if the certificate was obtained, is being held by, or is on behalf of a juvenile, no nomination may be filed. If the holder or holders of the certificate make a nomination in this situation, it will be canceled or changed using Form D.

You must submit separate applications for the proposal, revocation of the nomination, or modification of the nomination if you have multiple certificates registered on various dates. Such an application will be indicated on the certificate and take effect as of the registration date. First-time nominations are free to submit. A fee of Rs. 20 per application will be assessed for additional nominations or cancellations.

Withdrawals from Kisan Vikas Patra (Premature)

Under the terms of the plan, investors are permitted to retrieve their money at any time; however, there are several restrictions:

  • Within a year, premature withdrawals are not eligible for interest. According to the plan's rules, the investor must also pay a fine.
  • After a year and up to 2.5 years, early withdrawals will still earn interest, albeit at a lower rate.
  • After 2.5 years, premature withdrawals are not subject to penalties but accrued interest at the appropriate rate.

Online Kisan Vikas Patra Post Office Transfer Instructions

The Department of Posts in India has made it easy for subscribers to move certificates from one postal service to another.

The account holder simply fills out the KVP Transfer Form and submits it to the registered Post Office along with all necessary documentation to begin the transfer from the recorded postal service to any other post office:

Transfer of KVP Post Office Documents:

  • Complete and attest Form B
  • Confirmation of identity (driver's license, voter ID, PAN card, Aadhaar card)
  • (Passport, utility bill, water bill, bank statement) Proof of residence
  • Original KVP Certificate Application bearing the account holder's signature and authorizing the transfer

How to Transfer KVP From Someone to Someone Else

For the transfer of a KVP Certificate from one person to another, the subscriber must file a formal application at the designated Post Office. The following situations allow for this transfer: -

  • To the nominee/legal successors designated by the account holder upon death.
  • after the account holder's passing, the joint holder (s)
  • on the court's directive
  • When an account is pledged to the designated authority

The Kisan Vikas Patra's taxability

This plan offers no tax advantages. The interest is paid annually and is subject to taxation as "Income from Other Sources." Additionally, 10% TDS is deducted from the interest. However, the total amount due at maturity is not deductible for tax purposes.

  Note: KVP helpline number 1800 266 6868 KVP customer service number 

 How to Purchase KVP Online?

The steps for purchasing KVP online are as follows:

  • Log in to online banking or the India Post website.
  • Download the KVP Form A by choosing "Kisan Vikas Patra (KVP)" from the list.
  • Enter your personal information.
  • Mention your investment amount, payment method, and desired certificate type.
  • Complete the nomination information and deliver it to the bank or post office with the KYC paperwork.
  • You must pay the deposit when the documents have been examined. Cash, locally issued checks, pay orders, or demand drafts issued in the postmaster's favor may be used to make the payment.
  • You must pay the deposit when the documents have been examined. Cash, locally issued checks, pay orders, or demand drafts issued in the postmaster's favor may be used to make the payment.
  • A KVP certificate will be provided to you right away if you don't pay with a demand draft, pay order, or check. Keep this safe since you'll have to turn it in when you're mature. You can also ask for the certificate to be emailed to you.

Frequently Asked Questions (FAQs)

Q1: Can the Post Office issue a duplicate Kisan Vikas Patra?

In the case that a KVP certificate is lost, damaged, defaced, or stolen, the buyer may request a duplicate KVP certificate. The investor must present the identity slip given to them when the initial certificate was issued to do this. 

You must fill out Form NC29 and submit it along with a photocopy of the original certificate or a statement that includes the amount, number, and date of the deposit to obtain a duplicate certificate. Additionally, you must specify why you require a duplicate certificate. An FIR copy will be needed if a certificate is lost, stolen, or destroyed.

Other documents that must be supplied include proof of residency, identification, a passport-sized photo, a surety ID card, and a payment receipt.

Q2: Is the issuer post office the only location where Kisan Vikas Patra can be cashed?

The postal issuer service makes it simple to cash in KVP certificates. The buyer has the option of cashing it through additional post offices in the event of an emergency. The buyer must present the identity slip and the KVP certificate at the time of encashment.

Q3: How is KVP redeemable at maturity?

Upon completion, the due amount will be credited immediately to the certificate holder's bank or post office savings account. As a result, the KVP can be cashed at the exact post office or bank where it was issued. The amount's interest accrued is taxable. When the certificate reaches maturity, the recipient must provide the necessary documentation.

  • Authentic KVP certification
  • Proof of the holder's identity
  • When receiving the encashed sum, the investor or nominee must sign behind the KVP. When a minor who holds a KVP Certificate reaches adulthood, the KVP Certificate must be signed by the adult under the attestation of a known individual to the postmaster.

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