Investors Perceptions about Kisan Vikas Patra (KVP): Evidence from Agartala

Abstract

The objectives of the study is to report the motivating factors of respondents for investing in Kisan Vikas Patra (hereafter, KVP), a post office saving scheme and to assess the perceptions about the strategies to make it as an efficient investment instrument. An interview schedule comprising 41 questions with personal interview has been used to collect data from a sample size of 153 respondents chosen using different non-probability sampling techniques. A protocol interview with 10 respondents followed by a pilot survey with 20 respondents is carried out to check the validity of the questions, reliability and sample adequacy test is also performed. Through Factor analysis, five major factors are extracted. Based on such factors, students t-test is carried out. The findings indicate that a number of factors ranging from safety, liquidity, investment and maturity in cash, satisficing return, non-disclosure of sources of income and Permanent Account Number (PAN) motivate for invest in KVP. It documents that a number of issues need to be amended like allowing tax benefits, reduction in maturity tenure, rationalizing KYC norms, increase in the rate of return, provision for e-certificate and e-investment etc. The study also acknowledges its few limitations.

Keywords: Kisan Vikas Patra (KVP), Post Office, Survey, Factor Analysis, Students T-Test

View PDF