RBI/2014-15/463
IDMD(DGBA).CDD.No.3484/15.02.001/2014-15
February 09, 2015
The Chairman and Managing Director/Managing Director
Head Office, Government Accounts Department
State Bank of India/State Bank of Patiala/
State Bank of Bikaner & Jaipur/State Bank of Travancore/
State Bank of Hyderabad/State Bank of Mysore/Andhra Bank/
Allahabad Bank/Bank of Baroda/Bank of India/Punjab & Sind Bank/
Bank of Maharashtra/Canara Bank/Central Bank of India/
Corporation Bank/Dena Bank/Indian Bank/Indian Overseas Bank/
Punjab National Bank/Syndicate Bank/UCO Bank/Oriental Bank of Commerce/
Union Bank of India/United Bank of India/Vijaya Bank/IDBI Bank Ltd./ICICI Bank Ltd.
Dear Sir/Madam,
Kisan Vikas Patra, 2014
1. We forward herewith a copy of the Government of India Notification No.G.S.R.705 (E) dated September 23, 2014 regarding the Kisan Vikas Patra (KVP), 2014 Scheme for necessary action at your end. The Government of India, vide this Notification, has notified the Kisan Vikas Patra Rules, 2014, which came into force with effect from September 23, 2014. As per the Notification, the new Kisan Vikas Patra, 2014 Scheme, is required to be implemented through the designated branches of the Agency banks, which have been authorized for Public Provident Fund, 1968 (PPF, 1968) Scheme, together with Post Offices, doing Savings Bank Work.
2. As per Rule 2(f) of the Kisan Vikas Patra Rules, 2014, authorized branches of the Agency banks, which are conducting PPF, 1968 business, are also eligible for conducting the Kisan Vikas Patra, 2014 business. Agency banks may follow the same reporting procedure as prescribed for PPF, 1968 Scheme.
3. Details of accounting procedure for various transactions under the scheme are under finalization. Pending this, transactions under the Scheme may be classified as under:
Receipt & Payment : 8002 - Savings Certificates
00-107 - Post OfficeCertificates (New Series)
01- Current Series
02 - Kisan Vikas Patra
Interest : 8008- Income & Expenditure of National Small Savings Fund
02 - Interest Payment to Subscribers
102 - Interest on National Saving Certificates
08 - Post Office National Saving Certificates
09 - Kisan Vikas Patra
45 - Interest.
4. Reporting of the KVP, 2014 transactions i.e. receipt, payment, penalty, etc. may be directly credited to the Government Account at Central Account Section, Reserve Bank of India, Nagpur on daily basis like the transactions of PPF, 1968, in order to have uniformity in reporting, reconciliation and accounting.
5. The Agency banks are required to observe the rules and regulations of the Scheme, and non-observance of rules and regulations would attract penal action, including de-authorization of the branch or bank. Pecuniary liabilities, if any, arising from such non-observance shall be borne entirely by the bank.
6. You may, therefore, approach Central Account Section, Reserve Bank of India, Nagpur for necessary arrangements to report KVP, 2014 transactions with immediate effect.
7. The respective Agency bank will place the indent for the Kisan Vikas Patra certificates before the National Savings Institute (NSI), Seminary Hills, Nagpur and pick up the required stock of KVP certificates from India Security Press (ISP), Nasik. All the Agency banks are required to submit periodical report regarding progress of the collection in respect of KVP to the Budget Division, Ministry of Finance, Government of India, and New Delhi.
8. The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 Scheme. These instructions should also be displayed on the notice boards of your branches for information.
Yours faithfully
(R. K. Singh)
Deputy General Manager
Encls: As above
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