India Post and AMFI Join Hands to Simplify KYC for Mutual Fund Investors

On July 17, 2025, the Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) signed a major agreement in Mumbai to simplify the KYC (Know Your Customer) process for mutual fund investors across India.

Supporting Over 24 Crore Mutual Fund Accounts

This agreement aims to make KYC verification smoother for around 24.13 crore mutual fund folios, including 19.04 crore equity, hybrid, and solution-oriented scheme accounts, as per AMFI data from June 30, 2025.

Postal Network to Power Investor KYC

Under the MoU, DoP will use its vast network of over 1.64 lakh post offices to help investors complete KYC. Postal employees will assist in filling out forms, verifying self-attested documents, and forwarding them to AMCs. This will help investors, especially in remote and rural areas, complete KYC and continue investing in mutual funds.

Helping a Growing Mutual Fund Investor Base

The mutual fund industry is seeing rapid growth, with 4 million new investors added in FY23, 6.9 million in FY24, and 9.7 million in FY25. This partnership will make KYC faster and easier for new and existing investors, helping AMCs meet regulatory requirements and onboard millions of new investors each year.

By combining India Post’s massive reach with AMFI’s industry knowledge, this initiative promotes financial inclusion. It ensures that even those in the remotest parts of the country can access and invest in mutual funds without facing KYC hurdles.

Read More: Liquid, Overnight Funds See Sharp Outflows in May–June Amid Seasonal Withdrawals.

Secure and Compliant Process

The agreement is valid for one year starting July 2025 and can be renewed. It includes safeguards for investor data and strict compliance with SEBI rules to ensure privacy and security.

Conclusion

This landmark partnership between India Post and AMFI will simplify KYC for millions of mutual fund investors, making investing easier, safer, and more accessible, especially in underserved areas. It's a strong step toward boosting financial inclusion and modernising investor services across India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.