Rural inclusion push: Now, buy mutual funds from post offices
The Department of Posts and AMFI signed an MoU allowing post offices to distribute mutual funds, expanding access in rural areas. The agreement, effective until 2028, also includes investor protections.
- Aug 25, 2025,
- Updated Aug 25, 2025 2:52 PM IST
The Department of Posts (DoP) under the Ministry of Communications has entered into a significant partnership with the Association of Mutual Funds in India (AMFI) to enable the distribution of mutual funds through its extensive network of post offices across the country.
This development, marked by the signing of a Memorandum of Understanding (MoU) during AMFI’s 30th Foundation Day in Mumbai, aims to broaden the accessibility of investment products, particularly in rural and semi-urban regions where financial penetration remains limited. Under this agreement, India Post will leverage its 1.64 lakh post offices to operate as a distributor for mutual funds, with postal staff facilitating investment opportunities for customers in smaller towns and villages.
The agreement is effective until 21 August 2028 and contains provisions for renewal. It also ensures the safeguarding of investor data and service delivery standards, enhancing the reliability of mutual fund transactions conducted through postal services.
This follows a related MoU in July 2025 between DoP and AMFI, intended to streamline the Know Your Customer (KYC) process for mutual fund investors. This earlier agreement allows individuals to complete KYC requirements at post offices, with assistance from staff in form filling, document verification, and forwarding to fund houses, thus simplifying the investing process.
The initiative positions DoP as a pivotal player in the mutual fund distribution sector, potentially disrupting traditional distribution channels by offering wider access to investment products. Competitors in the financial distribution sector, such as ICICI Bank and HDFC Bank, may need to reassess their rural outreach strategies.
With this collaboration, SEBI Chairman Tuhin Kanta Pandey, who was present at the MoU signing, underscored the role of regulatory support in expanding financial inclusion. This initiative is also aligned with SEBI's plans to introduce additional incentives for first-time women investors, further promoting diversity in investment portfolios.
The Department of Posts (DoP) under the Ministry of Communications has entered into a significant partnership with the Association of Mutual Funds in India (AMFI) to enable the distribution of mutual funds through its extensive network of post offices across the country.
This development, marked by the signing of a Memorandum of Understanding (MoU) during AMFI’s 30th Foundation Day in Mumbai, aims to broaden the accessibility of investment products, particularly in rural and semi-urban regions where financial penetration remains limited. Under this agreement, India Post will leverage its 1.64 lakh post offices to operate as a distributor for mutual funds, with postal staff facilitating investment opportunities for customers in smaller towns and villages.
The agreement is effective until 21 August 2028 and contains provisions for renewal. It also ensures the safeguarding of investor data and service delivery standards, enhancing the reliability of mutual fund transactions conducted through postal services.
This follows a related MoU in July 2025 between DoP and AMFI, intended to streamline the Know Your Customer (KYC) process for mutual fund investors. This earlier agreement allows individuals to complete KYC requirements at post offices, with assistance from staff in form filling, document verification, and forwarding to fund houses, thus simplifying the investing process.
The initiative positions DoP as a pivotal player in the mutual fund distribution sector, potentially disrupting traditional distribution channels by offering wider access to investment products. Competitors in the financial distribution sector, such as ICICI Bank and HDFC Bank, may need to reassess their rural outreach strategies.
With this collaboration, SEBI Chairman Tuhin Kanta Pandey, who was present at the MoU signing, underscored the role of regulatory support in expanding financial inclusion. This initiative is also aligned with SEBI's plans to introduce additional incentives for first-time women investors, further promoting diversity in investment portfolios.