Department of Posts and AMFI Sign Landmark MoU to Simplify KYC for 24 Crore Mutual Fund Investors
Mumbai, July 18: In a significant move to enhance financial inclusion and regulatory compliance, the Department of Posts (DoP) under the Ministry of Communications and the Association of Mutual Funds in India (AMFI) have signed a historic Memorandum of Understanding (MoU) to streamline the Know Your Customer (KYC) process for India’s vast mutual fund investor base.
The agreement was signed today in Mumbai by Manisha Bansal Badal, General Manager (Business Development), Department of Posts, and VN Chalasani, Chief Executive, AMFI. The partnership is set to impact over 24.13 crore mutual fund folios, including 19.04 crore equity, hybrid, and solution-oriented schemes, as per AMFI’s data dated June 30, 2025.
Seamless KYC Through India’s Postal Network
As per the MoU, the Department of Posts will leverage its unparalleled nationwide network of over 1.64 lakh post offices to provide KYC verification and document collection services for mutual fund investors. Postal staff will assist individuals in completing KYC forms, attesting documents, and forwarding them to Asset Management Companies (AMCs) via AMFI’s framework.
The initiative will also address the needs of approximately 9.7 million new mutual fund investors expected annually, as per recent trends that saw 4 million additions in FY23, 6.9 million in FY24, and 9.7 million in FY25.
“This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide,” said Ms. Manisha Bansal Badal.
Mutual Fund Industry-Wide Benefit
By partnering with AMFI, the industry body representing India’s mutual fund ecosystem, the initiative ensures that KYC compliance for both new and existing investors can be seamlessly achieved across all AMCs. It also facilitates “KYC Validated” status for investors in the records of KYC Registration Agencies (KRAs)—a critical step for onboarding and servicing.
VN Chalasani, Chief Executive of AMFI, remarked, “This MoU marks a significant step in the industry’s efforts to ensure regulatory compliance for legacy investors, especially those in remote parts of the country. This initiative will help investors revive their folios and continue to invest seamlessly in mutual funds.”
Secure, Compliant, and Inclusive
The agreement, valid for one year from July 2025 and renewable thereafter, includes provisions for:
Adherence to SEBI regulations
Confidentiality and data protection
Strict safeguards for investor information
The initiative is positioned to become a national benchmark in investor servicing, bridging the digital divide and enabling easier access to investment opportunities for people in rural and underserved areas.
By combining DoP’s trusted infrastructure with AMFI’s industry-wide reach, this MoU reinforces the government’s broader mission to deepen financial penetration and investor participation across India’s rapidly evolving financial ecosystem.
