KYC Verification: There is good news for mutual fund holders as they no longer need to run around to get their KYC or ‘Know Your Customer’ verification done. The Department of Posts and AMFI or The Association of Mutual Funds in India have partnered together so that KYC verification and document submission for mutual fund investors can be streamlined.

This service will be accessible through 1.64 lakh post offices across the country. Currently, the country has over 24.13 crore mutual fund folios, out of which approximately 19 crore folios are from equity, hybrid and solution schemes. The new investor base is also increasing every year – an estimated 40 lakh new investors in FY 2022-23, 69 lakh in FY 2023-24, and about 97 lakh in FY 2024-25.

People from far-off places will also have the benefit

This will ease the KYC verification process for mutual fund companies and investors across the country will find it easier to invest in mutual funds. He further added that this collaboration is beneficial to older investors who wish to reactivate their folios and continue investing seamlessly after interrupted periods of investment.

The understanding between the AMFI and the Post Office will last for one year

It will last for one year, beginning July 2025, and has the possibility of further extension. These measures will also guarantee protection of the investors’ data as well as all regulations set by SEBI. The purpose of this program is to enhance Financial Inclusion in India by providing all investors easy KYC processes.

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