Lakhs and lakhs of small savers in rural and small-town India could soon find it easier to invest in mutual funds, thanks to a new partnership between India Post and the National Stock Exchange of India (NSE).
The two institutions have signed a Memorandum of Understanding (MoU) to use the vast post office network as a doorstep channel for mutual fund distribution, riding on NSE’s digital platform.
Post offices as investment gateways
Under the MoU, selected India Post employees will be trained and certified as mutual fund distributors, enabling them to offer investment products and related services through NSE’s MF platform, in full compliance with SEBI norms. The tie-up will tap into more than 1.64 lakh post offices—over 80 per cent of them in rural areas—to take simple, regulated mutual fund products to people who have so far relied mainly on savings accounts and fixed deposits.
NSE’s zero-cost MF Invest platform will handle the entire transaction lifecycle, from Aadhaar or mobile-based e-KYC at post offices to order placement, processing and back-office integration.
NSE will also fully fund NISM certification and EUIN registration for 2,500 India Post personnel, creating a cadre of trained wealth advisors in villages and small towns.
NSE MD and CEO Ashishkumar Chauhan said that the move would “democratize access to capital markets.”
“NSE MF Invest’s robust platform, combined with India Post’s unmatched reach, will script a new chapter where every small saver becomes a wealth creator,” added Chauhan.
From ‘stranded savings’ to wealth creation
The initiative comes at a time when mutual funds, despite having assets under management of over Rs 81 lakh crore, reach only about 10 per cent of Indian households, mostly in urban centres. By leveraging the trust people place in post offices, the partnership aims to channel what NSE calls “stranded savings” of mothers, farmers, daily-wage workers and youth into productive, market-linked investments.
The roll-out will happen in phases. Phase I will focus on a limited, easy-to-understand basket of diversified schemes with small ticket sizes suited for first-time investors, largely on a do-it-yourself basis but with assisted options where staff are certified.
In Phase II, the offering will expand to the full mutual fund universe across 55+ asset management companies, including systematic plans, goal-based tools, portfolio analytics and vernacular support, moving towards a full-fledged wealth management ecosystem.
India Posts also stated that this would generate new commission income streams for post offices and Gramin Dak Sevaks. Manisha Bansal Badal, GM (Citizen Centric Services & Rural Business), Department of Posts, stated, “This partnership with NSE will enable India Post to offer modern investment solutions to its customers while maintaining the highest standards of investor protection, transparency, and regulatory compliance.”