New Delhi: In view of falling interest rates, the government has increased the time period by 1 month for doubling the money invested in Kisan Vikas Patra (KVP) to 9 years and 5 months.
The funds parked in KVP with effect from July 1, 2019, will double in "9 years and 5 months" or 113 months as against "9 years and 4 months" or 112 months earlier, the finance ministry said while amending the Kisan Vikas Patra Rules, 2014.
The interest rate on KVP has been lowered to 7.6 per cent for the September quarter, compared with 7.7 per cent in the April-June period. The interest rates on the government's small saving instruments are revised every quarter.
Individuals can invest their money in saving instrument KVP in multiples of Rs 1,000 and there is no upper ceiling for investments. KVPs are issued in denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000.
KVPs are sold at post offices and the certificate can be encashed after two-and-a-half years from the date of issue.
In case of premature withdrawal after two-and-a-half years, a person will get Rs 1,173 for every Rs 1,000 invested. After 3 years, the amount will go up to Rs 1,211 and after three-and-a-half years, the amount would be Rs 1,251.
The withdrawal amount would gradually go up with time and double after 9 years and 5 months.