Question
Consider the following about Kisan Vikas Patra
(KVP). I. It is a small savings instrument that facilitates people to invest in a long-term savings plan. II. In 2014, Kisan Vikas Patra was relaunched with a many changes. III. PAN card is mandatroy for investments over Rs.40,000. Which of the above statement is/are correct?Solution
Kisan Vikas Patra is a small savings instrument that facilitates people to invest in a long-term savings plan. This scheme was introduced by India Post in 1988. Even though this scheme was popular, a Government Committee formed in 2011 suggested that KVP could be misused for purposes like money laundering. In 2014, Kisan Vikas Patra was relaunched with a number of changes including mandatory PAN card proof for investments over Rs.50,000 and income source proof for investments exceeding Rs.10 lakh.
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