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NSE & India Post Partner to Bring Mutual Funds to Rural India via Postal Network

The National Stock Exchange has signed a three-year agreement with the Department of Posts to distribute mutual fund products through India's vast postal network. Selected postal employees will be trained and certified to offer these investment services via NSE's platform. This initiative aims to significantly improve last-mile access to financial products, particularly in rural and semi-urban areas. The partnership will be rolled out in phases, starting with a pilot program.

Key Points: NSE, India Post Partner to Distribute Mutual Funds Nationwide

  • Train postal staff as certified distributors
  • Leverage 1.64 lakh post office network
  • Enhance rural & semi-urban access
  • Ensure regulatory compliance & transparency
2 min read

NSE, Department of Posts to expand mutual fund products across India

NSE and Department of Posts sign MoU to train postal staff as mutual fund distributors, expanding access to investment products across 1.64 lakh post offices.

"combining the trust, accessibility, and wide outreach of India Post with NSE's market infrastructure - Official Statement"

New Delhi, Feb 10

The National Stock Exchange of India has signed a memorandum of understanding with the Department of Posts to enable distribution of mutual fund products through India Post's extensive postal network, it was announced on Tuesday.

Under the three‑year agreement, selected employees of the Department of Posts will be identified, trained, and onboarded as certified mutual fund distributors, according to an official statement.

These officials will offer mutual fund products and related investor services through NSE's mutual fund platform, subject to mandatory certifications and regulatory compliance, including NISM certification and EUIN registration.

The Department of Posts, using its vast network of over 1.64 lakh post offices across the country, will work with NSE, which has a strong online system for handling mutual fund transactions, the statement from Ministry of Communications said.

This collaboration aims to significantly enhance last-mile access to mutual fund products, particularly in rural and semi-urban areas. The partnership aims for a transparent, compliant, and investor-friendly distribution ecosystem that reaches citizens across the length and breadth of the country, said Sriram Krishnan, Chief Business Development Officer, NSE.

The partnership aims to deepen financial inclusion by "combining the trust, accessibility, and wide outreach of India Post with NSE's market infrastructure and technological expertise." The initiative is expected to promote investor awareness, transparency, and participation in capital market-linked financial products, it added.

"This partnership with NSE will enable India Post to offer modern investment solutions to its customers while maintaining the highest standards of investor protection, transparency, and regulatory compliance," said Manisha Bansal Badal, General Manager (CCS and RB), Department of Posts.

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

The government had earlier announced plans for India Posts to evolve into a technology-driven logistics provider and achieve 80 per cent private-sector contribution in business revenues with Rs 25,000 crore in parcel business revenue over the next five years.

- IANS

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Reader Comments

P
Priya S
Finally! Taking financial products to the grassroots. The post office network is unmatched. Hope the training for the staff is thorough. We don't want mis-selling just to meet targets. Transparency is key.
R
Rahul R
Good step for financial inclusion. But I have a concern. Mutual funds are market-linked and carry risk. Will the post office staff, used to fixed deposits and savings certificates, be able to properly explain the risks to first-time investors in villages?
A
Anjali F
Combining the trust of India Post with NSE's tech is a masterstroke. My didi in a semi-urban area has been wanting to invest but finds apps confusing. She will feel much more comfortable walking into our local post office. 👍
D
David E
Interesting public-private partnership model. The scale potential is enormous. If executed well, this could significantly boost the domestic investor base and channel household savings into productive capital markets. A win-win.
K
Kavya N
Hope they keep the process simple and in local languages. Not everyone understands English financial jargon. Also, the transaction charges should be minimal to truly benefit small investors. All the best for the pilot project!

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