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The Department of Posts (DoP) under the Ministry of Communications and the Association of Mutual Funds in India (AMFI) have taken a major step for mutual fund distribution.
The two organizations have signed a Memorandum of Understanding (MoU), under which mutual funds will now be made available through post offices across the country.
Rural and urban customers benefit
Under this initiative, the employees of the postal department will play the role of mutual fund distributors. They will help the customers of small towns and villages to start the investment process. The agreement will be valid till 21 August 2028. It includes the provision of renewal. This means that this agreement can be extended further. Provisions related to the safety of data and service delivery for investors are also included in the agreement.
The postal department has a huge network
This agreement was signed at the 30th Foundation Day celebration of AMFI held in Mumbai. Under this, India Post will work as a mutual fund distributor. The Postal Department has a huge network of more than 1.64 lakh post offices, through which the reach of investment products will be increased in rural and semi-urban areas. Till now the penetration of mutual funds has been very limited in these areas.
The agreement was signed by Manisha Bansal Badal, General Manager (Business Development) of the Department of Posts and V.N. Chalasani, Chief Executive of AMFI. Securities and Exchange Board of India (SEBI) Chairman Tuhin Kant Pandey was also present on the occasion.
Earlier the KYC process was simplified
Earlier, an MoU was also signed between DoP and AMFI in July 2025. Its aim was to simplify the ‘Know Your Customer’ (KYC) process for mutual fund investors. Under that agreement, investors can complete KYC by visiting post offices, where employees help in filling the forms, verifying the documents and sending them to the respective fund house.
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