Department of Posts and AMFI Sign MoU for KYC Verification
The Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) have reached a significant milestone by signing a Memorandum of Understanding (MoU) on July 17, 2025, in Mumbai. This groundbreaking agreement aims to streamline the Know Your Customer (KYC) verification process for approximately 24.13 crore mutual fund folios, enhancing compliance and operational efficiency for a rapidly growing investor base. The collaboration is expected to facilitate seamless onboarding for millions of new investors, thereby promoting financial inclusion across the country.
Details of the MoU
The MoU was signed by Ms. Manisha Bansal Badal, General Manager of Business Development at the DoP, and Mr. V. N. Chalasani, Chief Executive of AMFI. This partnership will leverage the extensive network of over 1.64 lakh post offices across India to provide KYC verification and document collection services. According to AMFI data as of June 30, 2025, the agreement will cover 19.04 crore folios in Equity, Hybrid, and Solution-Oriented Schemes. This initiative is particularly timely, as the mutual fund industry has seen a remarkable increase in new investors, with approximately 4 million added in FY23, 6.9 million in FY24, and 9.7 million in FY25.
Benefits for Investors and Asset Management Companies
The collaboration is designed to benefit all Asset Management Companies (AMCs) under AMFI by ensuring efficient KYC compliance for their growing investor base. By streamlining the KYC process, the MoU aims to enhance operational efficiency and promote financial inclusion. The agreement will help onboard an estimated 9.7 million new investors annually, making it easier for them to participate in mutual fund investments. This initiative aligns with the goals of both organizations to create a more accessible and investor-friendly environment in the mutual fund sector.
Role of Postal Employees
Under this agreement, postal employees will play a crucial role in assisting investors with KYC forms, verifying self-attested documents, and transferring these documents to AMCs. This initiative not only simplifies the KYC process but also ensures that it is accessible, especially in remote and underserved areas. By combining the DoP’s extensive reach with AMFI’s expertise, the partnership aims to encourage greater participation in mutual fund investments among India’s diverse investor population.
Future Prospects and Compliance Measures
The MoU is effective for one year from July 2025 and is renewable, incorporating strict confidentiality measures and compliance with Securities and Exchange Board of India (SEBI) regulations. The agreement includes robust safeguards to protect investor data, setting a new standard for investor servicing and operational efficiency in India’s financial sector. Both Ms. Badal and Mr. Chalasani expressed optimism about the collaboration, highlighting its potential to support financial inclusion and regulatory compliance for investors across the country.
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