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Meaning of Kisan Vikas Patra

Meaning of Kisan Vikas Patra

Kisan Vikas Patra is an instrument on which fixed interest is paid by the Govt. This instrument is sold by the Govt and can be purchased through any Post Office. Kisan Vikas Patra can be purchased by making payment either in cash/ cheque/ pay order/ demand draft.

The Kisan Vikas Patra is of the following types:-

  1. Single Holder Type Certificate: Issued to an Adult for himself or on behalf of a minor
  2. Joint A type Certificate: Issued jointly to 2 adults payable to both the holders jointly or to the survivor.
  3. Joint B type Certificate: Issued jointly to 2 adults payable to either of the holders jointly or to the Survivor.

Investment in this instrument is only allowed to Resident Indians and therefore NRI’s cannot invest in this instrument. HUF is also not allowed to invest in this instrument.

A person interested in purchasing this instrument is required to submit an application in Form A or Form A1 either in person or through an agent of the small savings scheme.

Form A (No Background Colour Form) is to be used in case of direct investment and Form A1 (Coloured background Form) is to be used in case the investment is made through an Agent.

If the payment is made through Cash – the Instrument is issued immediately. However, if the payment is made through Cheque/ Pay Order/ Demand Draft – the Instrument is issued on the date on which the payment gets cleared.

At the time of issue of the Certificate, the buyer should also request for Identity Slip which would be required in case of loss of the certificate and also required for easy processing of the payment at the time of maturity.

Meaning of Kisan Vikas Patra

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