Reserve Bank of India directs banks to report kisan vikas patra deals daily

MUMBAI: The Reserve Bank today directed banks to report all kinds of Kisan Vikas Patra (KVP) transactions on a daily basis, failing which bank or their branches may face penal action, including de-authorisation.

As per RBI rules, banks needs to directly credit KVP dealings such as receipt, payment, penalty to government's account at the Central Account Section of the RBI in order to maintain uniformity for reporting, reconciliation and accounting.

"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," RBI said in a notification today.

The new KVP rules came into effect from September 2014. The new Kisan Vikas Patra, 2014 Scheme, is being implemented through designated branches of agency banks.

They have been been authorised for Public Provident Fund, 1968 (PPF, 1968) Scheme, together with Post Offices, doing savings bank work.

RBI further directed the banks to approach its Central Account Section based in Nagpur for necessary arrangements to report KVP, 2014 transactions with immediate effect.