Banking Awareness 2017 – Kisan Vikas Patra and Senior Citizen Savings Scheme (SCSS) Account | Interest Rates, Limits and Objectives

Hello and welcome to exampundit. Here are the list of all the important features, rate of Interest and objectives of Kisan Vikas Patra and Senior Citizen Savings Scheme  Account.

1. KVP is considered a part of the National Small Savings Fund.
2. The amount invested in Kisan
   Vikas Patra would get doubled in 112
   months or nine years and four months.
3. Kisan Vikas Patra (KVP) certificates are available to the investors
   in the denomination of Rs. 1000, 5000,
   10,000 and 50,000.
4. The certificates can be issued in
   single or joint names and can be transferred from one person to any other
   person / persons, multiple times.
5. The minimum amount that can be invested is Rs 1000. However, there is no upper limit on the purchase of
   KVPs.
6. KVP is not a tax saving instrument as it does not offer any income
   tax exemption.
7. The amount of KVP can be withdrawn after 100 months (8 years and 4
   months).
8. The maturity period or lock-in
   period of a KVP is 2 years 6 months(30
   months).
9. Reintroduction of Kisan Vikas Patra (KVP) was to provide a safe and
   secure investment avenue to the investors so as to help in augmenting the savings rate in the country.
10. The scheme is also aimed at safeguarding investors from fraudulent
    schemes, considering the number of ponzi
    schemes that have surfaced particularly after the closure of KVP.

1. An individual of the Age of 60 years or more may open the
   account.
2. An individual of the age of 55 years or more but less than 60 years who
   has retired on superannuation or under VRS can also open account subject to
   the condition that the account is opened within one month of receipt of
   retirement benefits and amount should not exceed the amount of retirement
   benefits.
3. Maturity period is 5 years.
4. After maturity, the account can
   be extended for further three years within one year of the maturity by giving
   application in prescribed format.
5. There shall be only one deposit
   in the account in multiple of INR.1000/-
   maximum not exceeding INR 15 lakh.
6. Account can be opened by cash for the amount below INR 1 lakh and
   for INR 1 Lakh and above by cheque only.
7. Premature closure is allowed
   after one year on deduction of an amount equal to1.5% of the deposit &
   after 2 years 1% of the deposit.
8. TDS is deducted at source on
   interest if the interest amount is more than INR 10,000/- p.a.

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Regards

Team ExamPundit