Hie Rohith, **Amount paid on Premature Encashment of KVP is :-** Although KVP offers pre-maturity withdrawal,as per KVP official site, the minimum lock-in period is two and half years. Hence, applicants can withdraw the amount before their actual maturity date. Under such cases, the holder will receive the entire principal amount and the earned interest until that period. In order to withdraw the amount, the holder has to visit the office that issued the certificate. The authority will return the full amount upon submitting the identity slip. In some cases, if visiting the branch that issued the certificate is not possible then applicant can visit the local post office and fulfill the formalities to obtain the matured amount. If the withdrawal of the amount is pre-mature, the applicant receives the principal amount and the interest. However, the interest will be less than the original value.