Government is planning to re-launch a new and improved version of the popular post office small savings scheme called Kisan Vikas Patra (KVP). The scheme was in existence till 01 Dec, 2011 after which it was discontinued due to apprehensions of it being used as a tool for money laundering.
The scheme used to offer an interest rate of 8.4% p.a without any tax deduction benefits. Now, the finance minister has announced that this scheme will be back in operation soon next month with some changes. Investment through cash could be fixed at Rs. 50,000.