India Post, AMFI Partner to Expand Mutual Funds Access in Rural India

The agreement will remain valid for three years (August 22, 2025 – August 21, 2028) with provisions for renewal, ensuring continuity and scalability.

In a landmark move to accelerate financial inclusion and investment penetration in rural India, the Department of Posts (DoP), Ministry of Communications, and the Association of Mutual Funds in India (AMFI) signed a Memorandum of Understanding (MoU) today during the 30th Foundation Day Celebration of AMFI in Mumbai.

The agreement will enable India Post to act as a distributor of mutual fund products, making it easier for citizens in rural and semi-urban regions to access structured financial products through the trusted post office network.

A Milestone Agreement

The MoU was formally signed by Ms. Manisha Bansal Badal, General Manager (Business Development), DoP, and Shri V.N. Chalasani, Chief Executive, AMFI, in the presence of Shri Tuhin Kanta Pandey, Chairman, SEBI.

The agreement will remain valid for three years (August 22, 2025 – August 21, 2028) with provisions for renewal, ensuring continuity and scalability. Importantly, it incorporates strong safeguards for investor data and service integrity, setting new benchmarks for operational excellence in India’s financial services ecosystem.

Bridging the Urban-Rural Investment Divide

Under the new model, trained postal staff will function as mutual fund distributors, guiding customers on:

• Investment options suited to their needs.

• Benefits of systematic investment plans (SIPs).

• Risk awareness and long-term financial planning.

The initiative is expected to:

• Enhance financial literacy in areas where awareness about mutual funds remains low.

• Democratize access to mutual fund products, often concentrated in urban centres.

• Support household wealth creation and promote participation in India’s growing capital markets.

With over 1.5 lakh post offices, of which 90% are in rural areas, India Post’s unparalleled presence will serve as a bridge between small investors and financial markets, particularly in underserved Tier-2, Tier-3 towns, and villages.

Voices from the Leadership

Speaking on the occasion, representatives from the government and industry highlighted the transformative potential of the initiative:

• Shri Tuhin Kanta Pandey, Chairman, SEBI, hailed the MoU as a “game-changer for investor outreach”, emphasizing that deepening mutual fund penetration is critical for broad-based market participation and long-term capital formation.

• Shri V.N. Chalasani, CEO, AMFI, noted that the partnership with India Post embodies AMFI’s mission of “creating a professional, transparent, and investor-friendly mutual fund industry that touches every corner of the country.”

• Ms. Manisha Bansal Badal, DoP, underlined the importance of leveraging the trust and credibility of post offices to introduce millions of first-time investors to regulated financial products.

Driving Financial Inclusion

This partnership is strategically aligned with the government’s broader objectives of:

• Expanding financial inclusion under Jan Dhan–to–Jan Nivesh (investment for all).

• Supporting Atmanirbhar Bharat by empowering rural households with financial tools.

• Strengthening domestic savings mobilization for India’s long-term growth story.

With mutual fund industry assets under management (AUM) surpassing ₹60 lakh crore in 2025, increasing retail participation from non-metro areas is seen as the next frontier for sustainable growth.

Looking Ahead

The MoU opens a new chapter in India’s financial ecosystem by combining:

• India Post’s vast grassroots presence and public trust.

• AMFI’s expertise and regulatory framework for investor-friendly practices.

As India Post staff undergo structured training and certification, millions of potential investors in villages and small towns will gain access to safe, transparent, and growth-oriented financial instruments.

This step not only strengthens the mutual fund industry’s reach but also represents a major leap toward inclusive, equitable financial empowerment in India.