Mumbai | July 17, 2025 —
In a groundbreaking move set to redefine investor onboarding in India’s mutual fund sector, the Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) signed a landmark Memorandum of Understanding (MoU) today in Mumbai. The agreement aims to streamline the KYC (Know Your Customer) verification process for over 24.13 crore mutual fund folios, including 19.04 crore equity, hybrid, and solution-oriented accounts, as per AMFI’s data as of June 30, 2025.
The MoU was formally signed by Ms. Manisha Bansal Badal, General Manager (Business Development), Department of Posts, and Mr. V. N. Chalasani, Chief Executive, AMFI.
Uniting Reach with Regulatory Precision
With a steady rise in mutual fund investors—4 million new investors added in FY23, 6.9 million in FY24, and an impressive 9.7 million in FY25—the agreement comes at a critical time to ease KYC compliance and expand financial access, especially in remote and underserved regions of the country.
Under the partnership:
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The Department of Posts will provide KYC verification and document collection services via its vast network of over 1.64 lakh post offices.
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AMFI will act on behalf of its member Asset Management Companies (AMCs) to ensure these investors attain “KYC Validated” status through KYC Registration Agencies (KRAs).
This will significantly reduce onboarding friction, allowing new and legacy investors to complete, verify, and submit KYC documents with the support of trained postal employees.
Empowering Investors at the Last Mile
During the ceremony, Ms. Manisha Bansal Badal remarked:
“This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide.”
Echoing this sentiment, Mr. V. N. Chalasani, Chief Executive of AMFI, said:
“This MoU is a significant step in ensuring regulatory compliance, especially for investors residing in remote corners of the country. It will enable them to revive their folios and invest with ease.”
Postal employees will now assist investors in filling KYC forms, verifying self-attested documents, and forwarding them securely to AMCs, bridging the digital divide for millions of households across India.
Building an Inclusive and Compliant Financial Future
This public-private partnership is a major stride in financial inclusion and digital transformation. By combining DoP’s unparalleled reach with AMFI’s industry expertise, the initiative aligns with India’s broader goals of creating a professional, investor-friendly financial ecosystem. It also supports regulatory mandates issued by SEBI, ensuring strong data protection and operational compliance.
Effective from July 2025 and valid for one year (renewable), the MoU includes strict confidentiality clauses, robust data privacy protections, and mechanisms to safeguard investor interests.
Conclusion: A New Chapter in Mutual Fund Servicing
This MoU between the Department of Posts and AMFI stands as a milestone in democratizing access to financial instruments. It is expected to set a new benchmark for investor servicing, regulatory compliance, and operational excellence in India’s mutual fund industry, ultimately empowering millions to participate confidently in the financial markets.
Source: PIB
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