DoP Signs MoU with AMFI to Streamline KYC Verification of MF Investors

Current Context: On July 17, 2025, the Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) signed a landmark Memorandum of Understanding (MoU) in Mumbai to simplify and expand KYC verification for mutual fund investors.

• Scope: Covers 24.13 crore mutual fund folios, including 19.04 crore in Equity, Hybrid, and Solution-Oriented Schemes.

Execution Partners:

• DoP will offer KYC verification and document collection via its 1.64 lakh+ post offices.
• AMFI will coordinate with KYC Registration Agencies (KRAs) to update investor records.

Investor Impact:

• Expected to benefit 9.7 million new investors annually.
• Enables postal employees to assist with KYC forms, verify documents, and forward them to AMCs.
• Especially helpful for rural investors and senior citizens facing digital access challenges.

Question:

Q.1 What is the primary aim of the Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) Memorandum of Understanding (MoU)?
a) To enable online mutual fund trading in rural areas
b) To simplify and expand KYC verification for mutual fund investors
c) To create a new postal savings fund
d) To reduce mutual fund taxes for senior citizens

Answer: b) The MoU primarily aims to simplify and expand Know Your Customer (KYC) procedures, especially for rural and underserved populations, by utilizing India's vast postal network.