Indian government re-launched the Kisan
Vikas Patra (KVP) investment scheme designed to target the country's poor with
a view to raising the rate of domestic savings.
Finance Minister Arun Jaitley said the savings rate in the country has declined from a record high of 36.8 percent to below 30 percent due to a slowdown in the economy and it is therefore, necessary to encourage people to save more.
Besides, KVPs would help poor gullible
investors channelize their savings in trusted government scheme instead of
Ponzi schemes where hard earned savings disappear, Jaitley said.
Available in the denominations of Rs
1,000, Rs 5,000, Rs 10,000 and Rs 50,000, the sum invested would be doubled in
100 months. The instrument has no upper limit for investment and can be
encashed after a lock-in period of 30 months.
The certificates can be issued in single
or joint names and can be transferred from one person to any other person or
persons, multiple times. Transfer facility will be available from one post
office to another in India, as well as of nomination.
The certificate can also be pledged as
security to avail loans from the banks, and in other cases of need as
collateral security.
The scheme, launched earlier in 1988 was
very popular, while the percentage share of gross collections under KVP was in
the range of 9 per cent to 29 per cent against the total collections received
under all National Savings Schemes.
No comments:
Post a Comment