Department of Posts to distribute Mutual Funds via Post Offices

The Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) signed a pioneering Memorandum of Understanding (MoU) on August 22, 2025. This landmark agreement was signed during AMFI’s 30th Foundation Day in Mumbai and will enable post offices to act as distributors for mutual fund investments.

Key Objectives of the Partnership

The primary goal of the collaboration is to leverage the vast, trusted network of India Post, which has over 1.64 lakh post offices, to enhance mutual fund penetration, especially in rural and semi-urban areas. The partnership aims to:

• Broaden Access: Provide citizens in smaller towns and rural regions with easy access to structured financial products, which have traditionally been out of their reach.
• Empower Postmen: Train approximately 1 lakh postmen to serve as certified mutual fund distributors. This initiative will focus on key states like Bihar, Andhra Pradesh, Odisha, and Meghalaya, with a goal to have at least 10 distributors in each district by the end of the year.
• Boost Financial Inclusion: The move is part of a broader strategy to double the mutual fund investor base and change the savings habits of millions of people.

Implementation and Rollout

The MoU is valid for three years, from August 22, 2025, to August 21, 2028, with provisions for renewal. The agreement includes comprehensive safeguards for investor data and service integrity, setting a new benchmark for operational excellence.

(Source: PIB)