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MoU to Expand Mutual Fund Access Nationwide

RR Team, December 12, 2025December 12, 2025
The Department of Posts (DoP) and BSE on Friday signed a landmark Memorandum of Understanding (MoU) to enable India Post to distribute mutual funds through its nationwide postal network. The partnership, inked in New Delhi, pairs India Post’s last-mile reach with BSE’s StAR MF distribution platform to expand investment access in rural, semi-urban and underserved areas.
The MoU signed by Ms. Manisha Bansal Badal, General Manager (CCS & RB), Department of Posts, and Shri Sundararaman Ramamurthy, MD & CEO, BSE formalises a three-year collaboration from 12 December 2025 to 11 December 2028, with provisions for renewal. Senior officials from both organisations witnessed the ceremony.

Postal Employees to Become Certified Distributors

Under the agreement, selected postal employees will be trained and certified as mutual fund distributors. BSE will support onboarding by facilitating the issuance of Employee Unique Identification Numbers (EUIN) and enabling personnel to obtain mandatory NISM Mutual Fund Distributor certification.

Certified postal staff and authorised agents will be authorised to advise customers on investment options, execute mutual fund transactions via the BSE StAR MF platform and provide basic investor support services at post offices. The programme includes training modules to ensure compliance, investor protection and digital transaction proficiency.

How the Partnership Works

BSE StAR MF is the country’s largest mutual fund distribution platform. By integrating this technology with India Post’s branch network, the partnership aims to enable end-to-end mutual fund transactions at post offices, supported by trained staff and digital record-keeping.

BSE will assist India Post in operational steps, including EUIN generation, NISM certification facilitation, platform integration and compliance checks. India Post will nominate eligible employees and provide physical touchpoints for investor outreach and transaction execution.

Financial Inclusion and Expected Impact

Officials said the collaboration is designed to deepen financial inclusion and promote investor awareness beyond urban centres. By making mutual funds accessible at local post offices, the move could encourage systematic savings and diversify household investment portfolios in Tier-2, Tier-3 and rural India.

Policy experts note that trusted local institutions such as post offices can bridge gaps in financial literacy and service access. The MoU is expected to increase participation in formal markets, reduce dependency on informal channels, and encourage informed investment behaviour among underserved populations.

Compliance, Consumer Protection and Training

To safeguard investors, the arrangement requires postal distributors to secure NISM certification and operate under BSE’s compliance framework. The EUIN system will record distributor identities for transparency, while BSE and India Post will monitor transactions and provide grievance redressal pathways.

Training will emphasise investor suitability, product disclosure, KYC norms and digital transaction safeguards core elements to protect first-time investors and build long-term trust in financial products.

Broader Context and Next Steps

The initiative aligns with the Budget 2025–26 emphasis on leveraging India Post’s network as a catalyst for economic activity in rural and semi-urban regions. It also complements broader government efforts to increase financial inclusion, such as Jan Dhan accounts and digital payment outreach.

Implementation will roll out in phases, beginning with pilot locations and a wave of training sessions for nominated postal employees. If successful, the model could be expanded to additional financial products and services delivered through post offices

News #BSE#BSEStarMF#DepartmentOfPosts#DigitalFinance#EconomicGrowth#FinancialInclusion#FinancialLiteracy#GovtOfIndia#InclusiveGrowth#IndiaNews#IndiaPost#InvestmentAwareness#InvestorServices#MoU#MutualFundDistribution#MutualFunds#NISM#PostalEmployees#PostalNetwork#RuralIndia#SemiUrbanIndia#StockMarketIndia#Tier2Cities

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