MCQs on Kisan Vikas Patra (KVP) Scheme

11.What is the maturity period of KVP accounts opened after April 1, 2020?

A. 5 years
B. 7 years
C. 9 years
D. 10 years and 4 months

The correct answer is: D

12.What happens to the deposit on maturity under KVP?

A. Doubles
B. Gets tax-free bonus
C. Reduces
D. Partial withdrawal

The correct answer is: A

13.What is the interest rate of KVP as of 2024?

A. 7.6%
B. 6.5%
C. 6.9%
D. 7.1%

The correct answer is: C

14.Interest under KVP is:

A. Paid monthly
B. Compounded annually
C. Simple interest
D. Paid quarterly

The correct answer is: B

15.Can a person open multiple KVP accounts?

A. No
B. Only 2 accounts
C. Yes
D. Only 1 per year

The correct answer is: C

16.Which of the following is not an eligible account type under KVP?

A. Single Holder
B. Joint B-type
C. Company account
D. Guardian on behalf of minor

The correct answer is: C

17.What is the minimum period after which KVP can be closed prematurely (except special cases)?

A. 1 year
B. 18 months
C. 2 years
D. 2 years and 6 months

The correct answer is: D

18.What is paid on premature closure before 2.5 years in case of death of the holder?

A. Maturity amount
B. No payment
C. Principal + simple interest (POSA rate)
D. Principal only

The correct answer is: C

19.Premature closure of KVP is not allowed in which of the following cases?

A. Death of holder
B. Forfeiture by Gazetted Officer (pledged account)
C. On court order
D. Personal financial emergency

The correct answer is: D

20.If a KVP account is pledged and forfeited by a Gazetted Officer, what is paid on closure?

A. Principal only
B. Maturity amount
C. Principal + POSA interest
D. No payment

The correct answer is: C
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