BANKING AFFAIRS

Detailed explanation-1: -Though the account matures after 120 months, the lock-in period is 30 months (2 years and six months). Encashing the scheme early is not allowed, unless in the account holder’s demise or court order.

Detailed explanation-2: -A Kisan Vikas Patra scheme can be closed before maturity. The principal along with the interest can be withdrawn. The period for premature withdrawal of KVP is after 2 years and 6 months from the date of issuance, which is also the lock-in period.

Detailed explanation-3: -Aside from the maturity period, the KVP also follows the lock-in period, which is two and a half years. The certificate can be forfeited only after the lock-in period is over.