DoP-AMFI MoU to Streamline KYC for 24 Cr Mutual Fund Folios via Post Offices

In a landmark development for India's financial sector, the Department of Posts (DoP) under the Ministry of Communications and the Association of Mutual Funds in India (AMFI) signed a groundbreaking Memorandum of Understanding (MoU) on July 17, 2025, in Mumbai. The agreement aims to streamline and democratize Know Your Customer (KYC) verification for an estimated 24.13 crore mutual fund folios, including 19.04 crore in Equity, Hybrid, and Solution-Oriented Schemes, according to AMFI's data as of June 30, 2025.

The MoU was signed between Ms. Manisha Bansal Badal, General Manager (Business Development), Department of Posts, and Mr. V. N. Chalasani, Chief Executive, AMFI, marking a strategic public-private collaboration to bolster financial inclusion, regulatory compliance, and investor convenience across India.

Strengthening KYC Infrastructure through India Post's Reach

The core of this MoU lies in leveraging the DoP's extensive network of over 1.64 lakh post offices—arguably the largest postal network in the world—to facilitate KYC verification and document collection for investors. With a presence in even the most remote rural regions, India Post will now serve as a crucial link between mutual fund investors and the KYC Registration Agencies (KRAs).

Under the arrangement, postal employees will assist investors by:

• Helping them complete and fill KYC forms

• Verifying self-attested documents in person

• Forwarding documents securely to the relevant Asset Management Companies (AMCs)

This will enable KYC validation for both new and legacy investors, including those who have struggled to complete verification due to geographical or technological barriers.

A Timely Move Amid Rapid Investor Growth

The MoU comes at a time when India's mutual fund industry is witnessing record growth in investor participation. According to AMFI:

• FY23 saw the addition of 4 million new investors

• FY24 added 6.9 million

• FY25 witnessed a jump to 9.7 million new investors

With such strong year-over-year growth, the demand for seamless onboarding and KYC compliance services has surged. This collaboration seeks to meet that demand head-on by enabling efficient and inclusive KYC processing at scale.

Empowering Financial Inclusion and Investor Confidence

Speaking at the MoU signing, Ms. Manisha Bansal Badal highlighted the partnership as a critical step toward financial empowerment:

"This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide."

Mr. V. N. Chalasani, Chief Executive, AMFI, echoed the sentiment and emphasized the benefits for underserved segments:

"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."

Scope and Safeguards of the Agreement

The agreement is initially valid for one year from July 2025 and is subject to renewal upon mutual consent. It also incorporates several safeguards and compliance measures to protect investors and uphold regulatory standards:

• Adherence to SEBI's KYC and data privacy guidelines

• Confidential handling of investor data by DoP staff

• Training and orientation programmes for postal employees to ensure compliance and service quality

By streamlining documentation, enhancing KYC reach, and enabling legacy folio revival, this MoU will reduce the risk of account inoperability for millions of retail investors and eliminate the need to visit AMC branches or third-party centers.

A Benchmark in Public-Private Cooperation

This partnership is poised to set a benchmark in public-private collaboration in the financial services sector. It is not just an operational win for the mutual fund industry, but also a policy-aligned move that:

• Promotes ease of doing investments

• Enhances investor trust and transparency

• Drives financial penetration in Tier II, III, and rural regions

It reflects the spirit of Digital India, Jan Dhan Yojana, and other key government missions aimed at universal financial access.

By harnessing the institutional might of India Post and the industry expertise of AMFI, the collaboration represents a modern, inclusive, and scalable model for improving financial services in a rapidly evolving investment landscape.