KYC Verification: Good news for 24 crore investors! Now mutual fund KYC will be done at the nearest post office
The Department of Posts and AMFI have partnered to simplify the KYC verification of mutual fund investors. This facility will be available through 1.64 lakh post offices, which will benefit even the residents of remote areas.
KYC Verification: There is relief news for mutual fund investors. Now they will not have to run around much to get KYC i.e. ‘Know Your Customer’ verification done. The Department of Posts and mutual fund body AMFI i.e. Association of Mutual Funds in India have joined hands so that the process of KYC verification and submission of documents of mutual fund investors can be easy and fast.
This facility will be available through more than 1.64 lakh post offices across the country. There are currently more than 24.13 crore mutual fund folios in the country, out of which about 19 crore folios are of equity, hybrid and solution schemes. The number of new investors is also increasing every year – 40 lakh new investors are expected to join in the financial year 2022-23, 69 lakh in the financial year 2023-24 and about 97 lakh in the financial year 2024-25.
Residents of remote areas will also get the facility
This agreement will make it easier for mutual fund companies to complete the KYC process of investors. This will make it easier for people living in remote areas of the country to invest in mutual funds. VN Chalasani, Chief Executive Officer, Association of Mutual Funds in India, said that this partnership will help old investors to restart their folios and continue investing without interruption.
Currently the agreement between the Department of Posts and AMFI is for 1 year
This agreement will be effective for one year from July 2025, which can be extended further. In this, the security of investors’ information and compliance with all SEBI rules will be ensured. The aim of this initiative is to promote financial inclusion in India through access to every investor and easy KYC.
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