The Full Form of ‘KVP’ in Banking is ‘Kisan Vikas Patra’.
Full Form of KVP
Kisan Vikas Patra, commonly known as KVP, is a small savings instrument in India which was launched by the Government of India in 1988. It is a scheme meant to encourage people to save money and help them grow their wealth at the same time. The scheme has been designed to provide an assured return on investment with security and liquidity benefits.
KVP stands for Kisan Vikas Patra, which is a type of small savings certificate issued by post offices in India. It provides investors with an assured rate of return and acts as an investment option for those who are looking for secure investments with guaranteed returns. The minimum amount required to open a KVP account is Rs 1000/- and the maximum amount that can be invested is Rs 50,000/-.
The main objective of KVP is to promote savings among citizens of India and also to provide them with easy access to funds whenever they need it. This scheme helps investors build up their financial portfolio over time and generate regular income from it. The interest rate offered on KVP certificates is 7.6%. This rate is revised periodically depending on market conditions and inflationary trends in the economy.
Investors can invest in KVP through multiple options such as single or joint accounts, transferable or non-transferable accounts, etc. There are certain restrictions applicable while investing in this scheme such as: (a) only individuals above 18 years of age can invest; (b) NRI’s cannot open an account; (c) companies, trusts and societies are not allowed to invest; (d) one could not use KVPs as collateral security against loan taken from any bank or financial institution; and (e) the maturity period of these certificates varies from 3 Years 6 Months 5 Days or 2 Years 3 Months 15 Days depending upon the option chosen by investor at the time of purchase.
Investors can redeem their KVP certificates anytime after completion of two years from date of issue but before maturity date without paying any penalty but if redeemed before two years, then investor has to pay penalty @ 1% per annum on amount invested subject to minimum fine being Rs 10/- . Investors have a choice between collecting redemption proceeds via cash or cheque/demand draft which will be sent directly at address mentioned at the time opening account at post office branch where certificate was purchased originally.
Overall, Kisan Vikas Patra provides an excellent opportunity for investors who are looking for safe investments with assured returns over long-term period without much risk involved while simultaneously helping them grow their wealth over time using power of compounding interest rates generated by this scheme periodically over course of its tenure period
Queries Covered Related to “KVP”
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- Explain full name of KVP.
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