A very popular and trusted saving scheme called Kisan Vikas Patra (KVP) was in vogue for a long time and contributed to the strengthening of economy in a major way. However, it was stopped in 2011 for unknown reasons. Naturally it had adverse impact on the savings rate in the country, which had fallen from 36.8 per cent to 30 per cent in last 2-3 years. Finance Minster has announced that the Government was contemplating re-launch of the scheme. The decision to do so is welcome. It is highly beneficial to the low income group people who will be able to save in smaller denominations. The most important benefit to the depositors will be that their money will be safe with the Government and they can also withdraw part of if after 30 months. By announcing re-launch of the scheme, it is but natural that fake and cheating finance companies will fade away in due course of time. While the depositor gets interest on his money, he will also be helping the state in widening its scope of expansion in developmental projects. It has to be said that Gross collections under the scheme in the year 2010-11 stood at Rs 21,631.16 crore which was 9 per cent of the total gross collections during the year.
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