Department of Posts, AMFI join hands for KYC verification of 24.13 crore MF investors

New Delhi, July 18 (IANS) The Department of Posts (DoP) has collaborated with the Association of Mutual Funds in India (AMFI) to streamline KYC (Know Your Customer) verification for approximately 24.13 crore mutual fund investors.

This includes 19.04 crore folios in Equity, Hybrid, and Solution-Oriented Schemes, as per AMFI data for June 30.

The MoU was signed by Ms. Manisha Bansal Badal, GM, (Business Development) on behalf of Department of Posts and Mr. V. N. Chalasani, Chief Executive, AMFI.

With an impressive year-over-year investor addition trend of approximately 4 million new investors in FY23, 6.9 million in FY24, and 9.7 million in FY25, this landmark agreement will benefit all Asset Management Companies (AMCs) under AMFI by ensuring seamless KYC compliance for their vast and growing investor base, enhancing operational efficiency and financial inclusion across India.

Under this agreement, DoP will provide KYC verification and document collection services through its extensive network of over 1.64 lakh post offices, ensuring efficient compliance for mutual fund investors.

AMFI, representing India’s mutual fund industry, will facilitate this initiative on behalf of its member AMCs to achieve “KYC Validated” status for investors in the records of KYC Registration Agencies (KRAs).

This partnership will cover the KYC verification needs of the rapidly growing investor base, ensuring an estimated 9.7 million new investors annually are seamlessly onboarded, according to an official statement.

“This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide,” said Manisha Bansal Badal, General Manager, Business Development Directorate, Department of Posts.

VN Chalasani, Chief Executive, AMFI, said that “this MoU marks a significant step in the industry’s efforts towards ensuring regulatory compliance for legacy investors residing in the far corners of the country”.

“This initiative will help investors revive their folios and continue to invest seamlessly in mutual funds,” he added.

The agreement, effective for one year from July 2025, is renewable and includes strict confidentiality measures, compliance with SEBI regulations, and robust safeguards to protect investor data. This initiative is poised to set a new benchmark in investor servicing and operational efficiency in India’s financial sector.

—IANS

na/