Post Offices to Offer Mutual Fund Investment Facilities in Villages and Towns

In a landmark initiative aimed at expanding financial inclusion, India’s rural and semi-urban population can now invest in mutual funds directly through post offices. The move comes after the Bombay Stock Exchange (BSE) signed a Memorandum of Understanding (MoU) with the Department of Posts on Friday, enabling millions of people in Tier-2 and Tier-3 towns to access mutual fund investment opportunities.

Bringing Mutual Funds Closer to Rural India

Traditionally, the benefits of the stock market and mutual fund investments have been largely restricted to urban populations. Rural participation has been limited due to lack of awareness and access. With this partnership, post offices—India’s most extensive physical network—will act as distributors of mutual fund products, helping bridge the gap between investors and the financial markets.

The BSE StAR MF platform, which handles over 85% of exchange-based mutual fund transactions in India and processes more than 7 crore transactions per month, will serve as the backbone of this initiative. Through the platform, post office personnel and trained agents will facilitate mutual fund sales and provide investor services directly to customers.

Scale and Reach

The Department of Posts operates over 1.64 lakh post offices across India, including in the remotest areas. This network will not only make mutual funds more accessible but also help in spreading financial literacy and building trust among rural investors.

Implementation

Selected post office staff and agents will receive training and certification to act as mutual fund distributors. They will then use the BSE StAR MF platform to offer a wide range of mutual fund products and services. The MoU, effective from December 12, 2025, will initially run for three years with the option for extension.

Statements from Key Officials

BSE MD & CEO Sundar Raman Ramamurthy said, “We thank the Government of India for envisioning India Post as a key vehicle for inclusive growth. This partnership is a major step in bringing financial products and literacy to millions of citizens by combining BSE’s technology-driven distribution platform with India Post’s unparalleled reach.”

Manisha Bansal Badal, GM (CCS & RB), Department of Posts, added, “This partnership reflects our commitment to financial inclusion and delivering services to the remotest corners of the country. By collaborating with BSE, we will empower our customers with modern investment solutions, strengthening our mission of inclusive and sustainable development.”

With this initiative, post offices are set to become a gateway for rural and semi-urban India to participate actively in the mutual fund ecosystem, marking a significant step toward democratizing financial services.