In a significant step toward strengthening financial inclusion, the Department of Posts (DoP) on Tuesday signed a Memorandum of Understanding (MoU) with the National Stock Exchange of India Limited (NSE) to facilitate the distribution of mutual fund products through the extensive India Post network.

The agreement will leverage India Post’s reach of over 1.64 lakh post offices across the country, particularly in rural and semi-urban regions, to provide citizens with access to capital market-linked investment products that have traditionally remained limited to urban centres.

Under the collaboration, the Department of Posts will integrate with NSE’s digital mutual fund transaction platform, which enables end-to-end processing of investments — from order placement to settlement — in compliance with Securities and Exchange Board of India (SEBI) regulations. The initiative is expected to significantly improve last-mile connectivity for mutual fund distribution in underserved areas.

As part of the arrangement, selected postal employees will be identified and trained to act as certified mutual fund distributors. These employees will be required to obtain mandatory National Institute of Securities Markets (NISM) certification and complete Employee Unique Identification Number (EUIN) registration before offering investment-related services.

Once certified, postal employees will be able to distribute mutual fund products and provide investor services through NSE’s platform, subject to regulatory compliance and investor protection norms.

The MoU will remain valid for a period of three years from the date of signing and may be extended based

on mutual agreement. The implementation will take place in phases, beginning with a pilot rollout in select locations. Based on operational readiness and performance, the initiative will be gradually scaled up nationwide.

Officials said the partnership aligns with the government’s broader objective of deepening financial inclusion and promoting investor awareness. Speaking at the signing ceremony in New Delhi, Manisha Bansal Badal, General Manager (Citizen Centric Services & Rural Business), Department of Posts, said the initiative would enable India Post to offer modern investment solutions while ensuring transparency and investor protection.

NSE Chief Business Development Officer Sriram Krishnan said the collaboration would widen access to capital market products by combining India Post’s physical outreach with NSE’s technological infrastructure.

The initiative is expected to boost mutual fund penetration in Tier-2, Tier-3, and rural markets, where awareness and accessibility remain comparatively low. With this partnership, India Post adds another key financial service to its portfolio, reinforcing its role as a major provider of citizen-centric financial services across India.