Post News Network
Bhubaneswar, January 20: The much-hyped revamped Kisan Vikas Patra (KVP), believed to have filled the coffers of the government, has not actually done a great business in the city. The certificates (patras) sold in various denominations through the post offices seem to have worked like any other saving scheme, say authorities at the head post office here.
“Kisan Vikas Patras are doing a normal business like any other saving schemes like National Savings Certificate (NSC) or PPF since the day it started selling at the post offices. There are many factors which have affected its sale. Unlike NSCs and PPF, it does not help in tax rebates. The only good thing that it offers is liquidity. People who want to withdraw prematurely may go in for this option.”
Postal Services (Orissa Circle) director Pawan Kumar Singh told Orissa Post the scheme could be used to stash black money. “These days, we comply with Know Your Customer (KYC) guidelines. We take down all details including the PAN card number, bank account number etc to ensure scrutiny of the person who wants to keep his money with us,” the director added.
When asked if the sales of KVPs can help generate revenue for the department, Singh said, “We are simply vendors of this product. We get Rs 65.05 for the sale of a certificate, irrespective of the denomination of the KVP. The funds from the saving accounts go to the public account of India, which is a part of the finance ministry.”
Nevertheless, financial consultants in the city are not very enthusiastic about the revamped KVPs. Sudhanshu Shekhar Mohapatra, a financial advisor residing in Kharvel Nagar says, “Of the existing saving formats in post offices, the most preferred schemes are NSC and PPF. Many people desist from going for the option as they provide no benefit to the consumers. Unlike PPF, the KVP interest rates are fixed which only does more harm to the account holder than good. The scheme is just over-hyped.”
