The Indian Government has always been committed to improving and enhancing the financial stability and income of its citizens, specifically the farming community, who constitutes a substantial portion of the country’s population. One such pioneering scheme that the government has launched is the Kisan Vikas Patra (KVP). The role of post offices in issuing Kisan Vikas Patra is significant and can’t be understated.
Kisan Vikas Patra – Understanding the Context
Kisan Vikas Patra (KVP) is a small savings instrument that provides long-term fixed investment options for Indian residents, in particular, the farming community. Kisan Vikas Patra is a risk-free investment plan where the invested amount doubles at the end of the maturity period, which is ten years and four months(124 months) currently. This scheme is particularly popular among rural and semi-urban investors who prefer safe and fixed returns.
Role of Post Offices in Issuing Kisan Vikas Patra
Given the widespread network of post offices across the country, their role in launching KVPs is critical. It is in the post offices that the majority of KVPs are issued, making these savings instruments more accessible to the rural population.
Post offices also facilitate a hassle-free and straightforward process for investors interested in KVP. Usually, the procedure involves the investor visiting the post office, filling a form and depositing the minimum investment amount. As the minimum amount of investment is INR 1000 and there is no upper limit, it becomes an affordable investment scheme for many Indians.
Besides, the post office also provides a pf balance check feature. By keeping track of your investments, you can, in the long run, ascertain your financial stability and growth.
Benefits of Kisan Vikas Patra
The role played by the post office is instrumental in popularising KVP amongst the masses and providing them myriad benefits. To begin with, it offers guaranteed returns as the investment doubles on reaching the maturity period. Secondly, it is a low-risk investment as it is backed by the Government of India, making it safe and reliable.
For instance, if a person invests INR 1,00,000 in KVP, it grows to INR 2,00,000 after ten years and four months. The point to note here is that the returns are completely exempt from risks. Thus, Kisan Vikas Patra is not only a great option to save money but also an excellent tool for financial planning.
While encouraging citizens to save, Kisan Vikas Patra, issued by post offices, has played a crucial role in financially strengthening, especially the rural parts of India. Amidst its many advantages, the potential investors should also be aware of the fact that the interest earned is chargeable under the tax slab of the investor at the time of maturity and there are no tax benefits during the time of investment.
Conclusion
While discussing the role of post offices in issuing Kisan Vikas Patra, it is important to note that although this scheme offers numerous benefits like double returns, low risk, and straightforward access through post offices, it’s not devoid of risks or cons. As an investor, one should gauge all the pros and cons associated with KVP or any other financial instrument.
Post offices, with their extensive reach, are playing a tremendous role in the implementation of KVP. However, it is upon the individual investor to decide whether it suits their financial goals and risk appetite.
Disclaimer:
The investors should make informed decisions considering their financial goals, risk appetite and market conditions. Ideally, consulting a financial advisor is suggested before making any decision related to financial market trading.
Summary:
The Kisan Vikas Patra is a revolutionary scheme by the Indian Government aimed at boosting the financial wellbeing of the farming community and other Indian residents. Post offices play a vital role in the issuance of KVPs, especially given its rural penetration, making these savings instruments accessible to a broader population. Besides, they ensure a simple and straightforward investment process. The benefits of KVP include guaranteed and risk-free returns with the invested amount doubling at the completed maturity period. Despite the many benefits, the investor must carefully explore all the pros and cons of the scheme before investment.
