look news india
The post office’s ‘Kisan Vikas Patra’ (KVP) scheme, which guarantees safe investment and doubling of money within the stipulated time, remains the first choice of millions of small and middle class investors in the country. Often such situations arise in life when due to any emergency, family reorganization, legal agreement or death of a family member, the investor needs to transfer the Kisan Vikas Patra in his name to another person. But can a surviving account holder sell or transfer his KVP account to any other third person on his own will under Post Office rules? The direct answer is that yes, Kisan Vikas Patra can be transferred from one person to another, but for this very strict rules and specific conditions have to be fulfilled set by the Postal Department and the Government of India.
Under normal circumstances, no person can directly transfer his KVP Certificate to any unknown or non-eligible person like a normal gift. As per Post Office Savings Bank (POSB) Rules and Kisan Vikas Patra Rules 2019/2014, change of ownership is allowed only under certain and defined legal conditions. If you fall within those mandatory conditions, the transfer process is easily completed after getting the written consent of the postmaster of the concerned post office and completing the formalities.
Under the official rules of the post office, transfer of Kisan Vikas Patra from one person to another is valid only in the following conditions:
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On death of the account holder: If the single account holder passes away, the KVP account is automatically transferred to his registered nominee or legal heir. In case of a joint account, on the death of one of the account holders, the account is transferred to the name of the surviving account holder.
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By Order of Court: If in any legal dispute, property partition or family agreement, a clear order is given by the competent court (Court of Law) to transfer the ownership of KVP to another person, then the post office makes the transfer following that order.
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On forfeiture after pledging (Pledging/Forfeiture): If you have pledged KVP as a loan or security in the name of a government bank, housing finance company, RBI, President or Governor, and due to any default the account is seized by the pledging authority, then the account is transferred in his name.
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From joint account to single account (or vice versa): Transfer is also permitted in cases of relinquishment of rights by one of the joint account holders in favor of the other or addition/deletion of name with mutual consent.
The person in whose name the Kisan Vikas Patra is being transferred must fulfill all the eligibility criteria of KVP decided by the Government of India:
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The person must be a citizen of India and an adult (18 years or above).
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He should not be a Hindu Undivided Family (HUF) or a Non-Resident Indian (NRI), as NRIs and entities are not allowed to hold a KVP account.
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The new person will have to submit all his KYC documents i.e. Aadhar Card, PAN Card and passport size photo at the post office for verification.
While getting KVP transferred in the name of another person, both the original account holder and the one in whose name it is being transferred have to submit the following documents to the post office:
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Prescribed transfer form of post office (Form-B or Transfer Application Form) duly filled and signed.
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Original Kisan Vikas Patra Passbook or Certificate (Original Deposit Receipt/Passbook).
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Valid identity proof (Aadhar Card, Voter ID, or Passport) of both the original account holder and the new recipient.
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Address proof of both the persons.
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PAN Card and passport size photograph of the new account holder.
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Documents in support of specific cases—such as death certificate of the account holder, succession certificate, or copy of an authorized decree of the court.
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Nominal transfer fee prescribed by the post office for the transfer process.
The KVP transfer process is not available online; For this one has to apply offline by appearing in person at the concerned post office:
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Visit the concerned post office: The original account holder (or his nominee/legal heir) and the new payee should go to the post office (home branch) where the KVP account is currently operated.
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Obtain and fill out the transfer form: Take the KVP transfer form from the post office counter. Enter the KVP account number, date of deposit, principal amount, complete details of the existing account holder and complete details of the new account holder in the form.
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Explain the valid reason for the transfer: Mention clearly in the application the reason for which the transfer is being made (e.g. nominee’s claim after death, court order, etc.).
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Attach documents and KYC: Attach all KYC documents, original passbook and relevant legal certificates of the new account holder along with the form.
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Verification and Postmaster Approval: The Sub-Postmaster or Head Postmaster of the post office will match all the documents, signatures and legal evidence. If all checks are found correct, the postmaster will formally approve the transfer application.
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Issuance of new passbook/confirmation: After completion of the transfer process the old records will be updated in the system and a revised passbook or transfer endorsement receipt will be issued in the name of the new account holder.
There is a doubt in the minds of many investors whether the interest rate on the account gets reduced when it is transferred to the name of another person or the time limit starts afresh. According to the rules of the post office, this does not happen at all.
The interest rate and maturity period fixed on the date the Kisan Vikas Patra was originally opened remains applicable to the new account holder also. That is, if the account was opened under the rule of doubling the money in 115 months and 3 years have passed, then the new account holder will receive the full double amount only after the remaining tenure. On maturity, the entire principal amount and accumulated interest will be paid directly into the account of the new account holder.