Andhra Bank
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Kisan Vikas Patra (KVP):

The Kisan Vikas Patra, 2014 was introduced vide Government of India Notification No. G.S.R.705(E) dated September 23, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/463/IDMD(DGBA).CDD.No.3484/15.02.001/2014-15 dated 09th February 2015. Now this scheme is implemented in our bank in PPF scheme designated 418 branches.
The salient features of the scheme are enumerated here under:

 Rate of interest
6.9% with effective from 01-04-2020 till 30-06-2020

  Features of KVP
  1. Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults. Any person or persons desiring to purchase a certificate shall present an application in Form A to bank. Business entities such as a company or institutions. NRIs or HUF (Hindu Undivided Family) are not eligible to invest in KVP.
  2. Investment can be made in denomination of Rs. 1000, 5000, 10,000 and 50,000.There is no upper ceiling on investment.
  3. KVP comes with a maturity of 124 months.
  4. The certificates can be issued in single or joint names and can be transferred from one person to any other person.
  5. KVP can be transfer from one post office to another anywhere in India and of nomination will be available.
  6. One can avail loans on KVP from the banks and in other case where security is required to be deposited.
  7. Liquidity: Investor can encash his certificates after the lock-in period of 2 years and 6 months.
  8. Simple interest is calculated for initial 2.5 years, after which it is compounded annually.
  9. No PAN number is required for investment in Kisan Vikas Patra
  Tax Benefit:
There are no tax benefits since interest accrued on Kisan Vikas Patra is taxable.