Kissan Vikas Patra relaunching is a good step, Govt. must ensure its proceeds to be beneficial for farming community
People are fed up from fraudulent investing scams promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. In fact, it actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.
Despite some criticism and misgivings in certain quarters, the government has decided to re-introduce the Kisan Vikas Patra (KVP), a savings instrument that was discontinued three years ago. Positioned as a savings instrument in line with other continuing ‘small savings schemes’ such as the Public Provident Fund (PPF) and the National Savings Certificates (NSCs), the new KVP, like its predecessor, has certain advantages as well as disadvantages over these. Most ordinary investors will compare the new KVP with bank deposits and other debt instruments.
Relaunching of Kissan Vikas Patra (KVP) is a good step in the country. While it will help the poor gullible investors to channelize their savings towards trusted government schemes instead of some fraudulent schemes. Secondly,
Secondly, the Government would stand to gain through the proceeds of KVP when purchased by individuals goes as savings done by individuals. This action will translate into more secured savings for the country.
Broad features of the new KVP are 8.7 per interest with 8 years and four months (100 months) tenure, say double in 100 months with minimum lock-in period 2 years and 6 months. Regarding liquidity, these can be encahsed in eight equal monthly instalments after the lock-in period, can be transferred to another person by endorsement and delivery besides giving to the bank as collateral for loans. However, the minimum investment is Rs.1000 with no maximum limit in denominations of Rs.5000, Rs.10000 and Rs.50000 but fully taxable.
With already a trusted scheme and its proper monitoring and publicity, the targets set for KVP collection for this financial year and following years can be achieved without much difficulty.
With already a trusted scheme and its proper monitoring and publicity, the targets set for KVP collection for this financial year and following years can be achieved without much difficulty.
The word Kisan (farmer) is prominent in this instrument and the meaning of this instrument is bettering the lot of farmers through this scheme.
Undoubtedly, India as a country has always taken pride to proclaim that the country is supported by huge number of people, rather more than 60 per cent who are into farming/agriculture related activities.
The only thing to be seen this time is that if existing schemes are also modified in a manner that the proceeds of the KVP prove to be more beneficial for the farming community. While the investors want to be sure about its return, at the same time to be sure that KVP is actually helping the farming community dedicated to agriculture to improve their day today activities. In this way, the product KVP will become popular amongst the masses.
The only thing to be seen this time is that if existing schemes are also modified in a manner that the proceeds of the KVP prove to be more beneficial for the farming community. While the investors want to be sure about its return, at the same time to be sure that KVP is actually helping the farming community dedicated to agriculture to improve their day today activities. In this way, the product KVP will become popular amongst the masses.
One way of bettering the farming community through KVP proceeds is to send small teams of farming community to developed countries including agriculture developed countries for enhancing their knowledge on so many agri-based issues.
There were reports in the past stating that around 600 farmers from Gujarat State had travelled to Israel, Tel Aviv to attend an Agritech Exhibition. The objectives of the farmers was to learn the techniques for achieving better quality of crops as well as more produce with less usage of water and pesticides.
Based on this initiative, more and more farmers from different parts of the country can be taken to different advanced countries for bettering their agriculture related issues.
