In a significant step towards making regulated investment more accessible, India Post has signed a pact with the National Stock Exchange of India (NSE) to offer mutual fund investment services to citizens across India. This will be done through its extensive network of post offices across the country.
On Tuesday, the Department of Posts (DoP) signed a Memorandum of Understanding (MoU) with NSE in Delhi. As per this agreement, the mutual fund products are going to be made available through 1.64 lakh+ post offices in order to help Indian citizens get easy access to capital market-linked investment, much closer to their homes.
Expanding Investment Access
The collaboration will use NSE’s digital mutual fund transaction platform. The platform supports the complete investment process, from the start of placing an order to settlement, all while following the Securities and Exchange Board of India (SEBI) guidelines. This initiative will aim at improving the last-mile delivery of mutual fund services across India, and especially in areas where investment facilities are limited.
Training Postal Staff
As part of the initiative, selected postal employees will also be trained to act as certified mutual fund distributors. These employees will be required to obtain necessary certifications. These include the National Institute of Securities Markets (NISM) certification, and complete Employee Unique Identification Number (EUIN) registration before providing their services to customers.
Once the postal staff get certified, they will easily be able to assist the investors with mutual fund investments through NSE’s platform. Especially while ensuring compliance with all the regulatory norms.
Phased Rollout
Moreover, this agreement between the two bodies will stay in effect for a total of three years and then can be extended with mutual approval. The rollout will begin with a pilot project in select locations. And based on its success, the service will then be expanded gradually across the country.
Supporting Financial Inclusion
Officials said that this partnership supports the broader objective of the government and focuses on improving financial inclusion and increasing awareness about various investment products. By combining NSE’s digital infrastructure with India Post’s wide physical presence, the initiative will aim to create both a compliant and transparent distribution system of investment.
At the signing event, Manisha Bansal Badal, who is the General Manager for Citizen Centric Services and Rural Business at the Department of Posts, said the partnership would allow India Post to deliver contemporary investment services, all while ensuring investor protection.
Sriram Krishnan, Chief Business Development Officer at NSE, said the initiative would extend the reach of capital market offerings to areas that currently have limited access.
Boost for Mutual Fund Participation
The move is expected to encourage mutual fund investments in Tier-2, Tier-3, and rural areas. Where the participation levels are relatively low. India Post has continued to expand its range of financial services with this partnership. This further helps them in strengthening their role as a trusted provider of citizen-focused services across India.
