India Post, BSE ink landmark pact to take mutual funds deep into rural India

In a significant push toward deepening financial inclusion, the Department of Posts (DoP) and BSE, Asia’s oldest stock exchange, on Friday signed a landmark Memorandum of Understanding (MoU) to expand access to mutual fund products across India — particularly in rural, semi-urban, and underserved regions.

The partnership, aligned with the Union Budget 2025-26 announcement, seeks to leverage India Post’s expansive postal network to bring investment opportunities closer to millions of households that remain outside the formal financial system. With over 1.5 lakh post offices — many located in remote areas — India Post continues to serve as one of India’s largest last-mile service providers.

Under the agreement, India Post will act as a distributor of mutual fund schemes through BSE StAR MF, the country’s largest mutual fund distribution platform. This move aims to democratize investment access and foster a culture of savings through regulated market-linked products.

The MoU was signed in New Delhi by Manisha Bansal Badal, General Manager (CCS & RB), Department of Posts, and Sundararaman Ramamurthy, MD & CEO, BSE, in the presence of senior officials from both organizations.

Valid for three years — from December 12, 2025, to December 11, 2028 — the agreement includes provisions for renewal.

As part of the collaboration, selected postal employees will undergo training and obtain mandatory NISM certification, enabling them to serve as qualified mutual fund distributors. BSE will generate Employee Unique Identification Numbers (EUINs) for certified personnel to ensure transparent and compliant operations.

These trained officials will support customers in:

• Making informed investment choices
• Executing mutual fund transactions
• Accessing investor assistance and service support at the last mile

Strengthening India’s financial inclusion mission

The initiative reflects the Department of Posts’ efforts to enhance its portfolio of financial services beyond savings accounts and insurance. For BSE, the tie-up aligns with its goal of fostering an efficient, investor-friendly mutual fund ecosystem by expanding distribution access to the grassroots.

By integrating BSE’s digital infrastructure with India Post’s nationwide presence, the partnership is expected to:

• Improve accessibility to investment products
• Enhance investor awareness
• Promote formal financial participation
• Strengthen last-mile financial service delivery

The collaboration is expected to significantly increase mutual fund penetration in Tier-2, Tier-3, and rural markets — areas where investors often lack easy access to regulated investment channels. By empowering postal staff with training and technology, the initiative could play a crucial role in building a financially informed and empowered population.