The Department of Posts (DoP), under the Ministry of Communications, Government of India, and the Association of Mutual Funds in India (AMFI) have hit a historic milestone by signing a pathbreaking Memorandum of Understanding (MoU) on July 17, 2025, in Mumbai to streamline KYC (Know Your Customer) verification for approximately 24.13 crore mutual fund folios, including 19.04 crore in Equity, Hybrid, and Solution-Oriented Schemes, as per AMFI data for June 30, 2025. 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.
Ms. Manisha Bansal Badal, General Manager (Business Development), Department of Posts and Mr. V. N. Chalasani, Chief Executive, AMFI, during the MoU signing ceremony held in Mumbai
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.
The MoU enables postal employees to assist investors in completing KYC forms, verifying and attesting self-attested documents, and transferring them to AMCs. This partnership aligns with DoP’s commitment to delivering innovative public-private partnership services and AMFI’s mission to foster a professional, investor-friendly mutual fund ecosystem. By combining DoP’s unparalleled reach with AMFI’s expertise, the initiative aims to make KYC compliance more accessible, especially in remote and underserved areas, thereby encouraging greater participation in mutual fund investments among India’s vast and growing investor base.
Ms. Manisha Bansal Badal, General Manager, Business Development Directorate, Department of Posts, stated, “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, added, “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.”
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.
