How Are the Department of Posts and AMFI Collaborating for KYC Verification of 24.13 Crore Mutual Fund Investors?

New Delhi, July 18 (NationPress) The Department of Posts (DoP) has joined forces with the Association of Mutual Funds in India (AMFI) to enhance the KYC (Know Your Customer) verification process for nearly 24.13 crore mutual fund investors.

This initiative encompasses 19.04 crore folios across Equity, Hybrid, and Solution-Oriented Schemes, based on AMFI's data as of June 30.

The memorandum of understanding (MoU) was executed by Ms. Manisha Bansal Badal, General Manager (Business Development) representing the Department of Posts, along with Mr. V. N. Chalasani, Chief Executive of AMFI.

With a remarkable trend of adding around 4 million new investors in FY23, 6.9 million in FY24, and 9.7 million in FY25, this significant partnership is set to support all Asset Management Companies (AMCs) affiliated with AMFI, ensuring smooth KYC compliance for their extensive and expanding investor community, thus boosting operational efficiency and financial inclusion throughout India.

As part of this agreement, the DoP will deliver KYC verification and document collection services via its vast network of over 1.64 lakh post offices, facilitating effective compliance for mutual fund investors.

AMFI, which represents India’s mutual fund sector, will oversee this initiative on behalf of its member AMCs to attain “KYC Validated” status for investors within the records of KYC Registration Agencies (KRAs).

This collaboration is designed to meet the KYC verification demands of a rapidly increasing investor count, ensuring that an anticipated 9.7 million new investors are seamlessly integrated each year, according to an official announcement.

“This partnership leverages our extensive postal infrastructure to bolster financial inclusion and simplify KYC processes for investors across the nation,” stated Manisha Bansal Badal, General Manager, Business Development Directorate, Department of Posts.

VN Chalasani, Chief Executive of AMFI, remarked that “this MoU signifies a crucial advancement in the industry’s endeavors to ensure regulatory compliance for legacy investors residing in remote areas of the country.”

“This initiative will assist investors in reviving their folios and enable them to continue investing effortlessly in mutual funds,” he added.

The agreement, effective for a year beginning July 2025, is renewable and incorporates stringent confidentiality protocols, adherence to SEBI regulations, and solid safeguards to protect investor data. This initiative is set to establish a new standard in investor service and operational efficiency within India’s financial landscape.