India Post, NSE tie up to distribute mutual funds through 1.64 lakh post offices

The Department of Posts on Tuesday signed a memorandum of understanding (MoU) with the National Stock Exchange (NSE) to enable distribution of mutual fund products through India Post’s postal network, an official statement said.

Under the agreement, mutual fund services will be offered through over 1.64 lakh post offices across the country.

The initiative is expected to expand last-mile access to capital market-linked products, especially in rural and semi-urban areas.

The Department of Posts will leverage NSE’s digital mutual fund platform, which facilitates end-to-end transaction processing, including order placement and settlement, in compliance with Securities and Exchange Board of India (SEBI) norms, the statement said.

The MoU was signed in New Delhi by senior officials of the Department of Posts and the NSE.

As part of the arrangement, selected postal employees will be identified, trained and onboarded as certified mutual fund distributors.

The officials will be required to obtain mandatory certifications, including National Institute of Securities Markets (NISM) certification and EUIN registration, before offering mutual fund products and investor services through the NSE platform.

“The Department of Posts has always played a pivotal role in advancing financial inclusion and delivering citizen-centric services. This partnership with NSE will enable India Post to offer modern investment solutions to its customers while maintaining the highest standards of investor protection and regulatory compliance,” said Manisha Bansal Badal, General Manager (Citizen Centric Services & Rural Business), Department of Posts.

Sriram Krishnan, Chief Business Development Officer, NSE, said the collaboration would help broaden access to mutual fund products by combining India Post’s wide physical presence with NSE’s technology-driven market infrastructure.

The MoU will be valid for three years from the date of execution and may be renewed by mutual consent.

The initiative will be implemented in a phased manner, beginning with a pilot in selected locations.

“The initiative is expected to contribute significantly to increasing mutual fund penetration in Tier-2, Tier-3, and rural areas, strengthening investor confidence, and supporting India’s journey towards a financially empowered society,” the statement added.