In an initiative aimed to simplify the customer on-boarding process for mutual fund investors, the Department of Posts has entered into a strategic partnership with SBI Funds Management Limited (SBIFM), a prominent asset management company.
A Memorandum of Understanding (MoU) was signed as per which India Post’s extensive network will be used to provide doorstep KYC verification services for investors of SBI Mutual Fund.
The MoU was officially signed between the Ms. Manisha Bansal Badal, General Manager, Business Development Directorate, Department of Posts, and Sh. Munish Sabharwal, Senior Vice President, SBI Funds Management Limited, in a ceremony held at Dak Bhawan, New Delhi.
Benefits of the collaboration
This initiative aims to streamline the KYC process, ensuring convenience, security, and regulatory compliance for investors across India.
With India Post’s vast network across the interiors of India, this partnership is aimed to ease the KYC process and provide a gateway for individuals, particularly in rural and semi-urban areas, to engage with investment products such as mutual funds.
Door-to-door KYC service for investors
The door-to-door KYC service will offer immense convenience to investors, allowing them to complete the entire process from the comfort of their homes. This is particularly advantageous for senior citizens, individuals with mobility challenges, or those living in remote areas, where access to physical banking services is limited.
By offering KYC services at the doorstep, the initiative also plays a crucial role in educating the masses about the importance of compliance with financial regulations.
India Post to facilitate KYC formalities for SBI Mutual Fund investors
India Post, with its vast network of over 1.64 lakh post offices spread across even the remotest corners of the country, is uniquely positioned to support initiatives aimed at financial inclusion. With post offices in urban areas, rural towns, remote villages, and even areas with limited access to other financial services, the Department of Posts has the unparalleled reach to assist with customer service requirements, including KYC verification.
As part of the MoU, India Post will facilitate the completion of KYC formalities for SBI Mutual Fund investors by collecting the necessary forms and documents from investors across the country. The KYC documents will be collected by India Post’s trained personnel, ensuring a high level of security, accuracy, and privacy in the process.
By using India Post’s nationwide network, this partnership will ensure that investors, regardless of their location, can easily complete the KYC process. This will be particularly beneficial for investors in rural, underserved, and far-flung areas who often face challenges in accessing traditional financial services.
Collaboration supports Government of India’s Jan Nivesh initiative
This collaboration supports the Government of India’s Jan Nivesh initiative, which aims to increase financial inclusion and encourage more people to participate in India’s capital markets. It also contributes to the ongoing efforts to digitise financial services under the Digital India programme.