In a historic move aimed at enhancing financial inclusion and streamlining regulatory compliance, the Department of Posts (DoP), under the Ministry of Communications, and the Association of Mutual Funds in India (AMFI) have signed a landmark Memorandum of Understanding (MoU) to facilitate Know Your Customer (KYC) verification for India’s massive mutual fund investor base.
The MoU was signed at a ceremonial event in Mumbai by Ms. Manisha Bansal Badal, General Manager (Business Development), Department of Posts, and Mr. V. N. Chalasani, Chief Executive, AMFI. This collaboration marks a pivotal advancement in bringing financial services to the last mile by utilizing DoP’s vast physical infrastructure.
Revolutionizing KYC for 24.13 Crore Mutual Fund Folios
As per AMFI data (June 30, 2025), India has 24.13 crore mutual fund folios, of which 19.04 crore are held in Equity, Hybrid, and Solution-Oriented Schemes. The growing trend in investor participation is significant:
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FY23: 4 million new investors
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FY24: 6.9 million new investors
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FY25: 9.7 million new investors (projected)
The newly signed MoU seeks to support and simplify KYC compliance for these rapidly growing numbers by integrating DoP’s nationwide network with AMFI’s regulatory framework.
Strategic Role of India Post: Delivering KYC at Doorstep
With over 1.64 lakh post offices across the country — many in rural and remote areas — DoP will now play a crucial role in:
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Assisting mutual fund investors with KYC form filling
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Collecting and verifying documents
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Digitally transmitting verified applications to Asset Management Companies (AMCs)
Trained postal employees will support investors, especially those in tier 2, tier 3, and rural locations, to complete KYC documentation efficiently. This role expansion aligns with India Post’s evolving mission of delivering public-private digital services in financial, insurance, and e-governance domains.
“This collaboration harnesses our extensive postal infrastructure to support financial inclusion and simplify KYC processes for investors nationwide,” said Ms. Manisha Bansal Badal.
AMFI’s Role: Driving Regulatory Efficiency and Investor Confidence
Representing the collective interest of India’s 44 Asset Management Companies, AMFI will coordinate with KYC Registration Agencies (KRAs) to ensure that verified applications achieve “KYC Validated” status. This process is essential for:
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Complying with SEBI’s updated KYC norms
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Reviving dormant folios with missing or outdated KYC
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Enabling seamless onboarding for new investors
“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,” said Mr. V. N. Chalasani, Chief Executive, AMFI. “It also helps simplify onboarding for the 9.7 million new investors we expect this year.”
Building a Seamless, Inclusive, and Secure Ecosystem
This initiative offers a triple advantage:
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Operational Efficiency: Eases the burden on AMCs and KRAs by decentralizing and digitizing the KYC verification process.
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Financial Inclusion: Bridges access gaps in rural and underserved regions, ensuring no investor is left behind.
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Regulatory Compliance: Strengthens SEBI-mandated KYC integrity and upholds investor protection norms.
The agreement comes with strict data confidentiality clauses, robust security standards, and adherence to SEBI’s regulatory framework. The MoU is valid for one year starting July 2025, and is subject to annual renewal based on performance and mutual agreement.
A Catalyst for Investor Servicing and Mutual Fund Growth
The DoP-AMFI partnership is expected to set a new benchmark for investor servicing in India’s financial sector, especially as more Indians from non-metro regions begin participating in the capital markets. With this initiative:
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Existing investors can regularize their folios quickly
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New investors can be onboarded without digital hurdles
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AMCs can enjoy faster turnaround times and reduced verification costs
This collaboration complements national financial literacy and digital governance goals, and supports India’s vision of broad-based capital market participation under the Digital India and Jan Dhan to Jan Suraksha missions.
Looking Ahead
This model of leveraging government infrastructure for private financial sector operations is a proof of concept for future public-private partnerships. If successful, the DoP-AMFI KYC model could be replicated across other domains like:
By uniting India’s oldest network (India Post) with one of its fastest-growing investment sectors (mutual funds), this MoU represents a groundbreaking step toward inclusive, efficient, and investor-friendly financial markets.