BSE and India Post Sign MoU to Expand Mutual Fund Access in Rural India

BSE has entered a 3-year agreement with the Department of Posts to make mutual fund services available through India Post offices.  

The arrangement focuses on expanding access in rural and semi-urban regions, where investment products are not yet widely distributed. 

Postal Network as Distribution Channel 

India Post runs more than 164,000 post offices, creating one of the largest physical service networks in the country.  

This reach is central to the plan, as it allows mutual fund services to be offered in areas that do not have established distributor networks or consistent digital access. 

Training and Certification 

Under the agreement, selected postal employees and agents will undergo training and formal certification to act as mutual fund distributors.  

They will handle basic transactions through StAR MF, BSE’s mutual fund platform, which is already used by intermediaries nationwide. 

Role of StAR MF 

The StAR MF system will be the main channel through which transactions are processed.  

Its use is expected to streamline procedures for postal staff and allow customers to complete purchases and redemptions without additional paperwork, a frequent barrier in rural areas. 

Implementation Focus 

The collaboration includes plan to support customer awareness and guide new investors through the process. Postal workers who complete certification will be responsible for explaining forms, processes, and basic transaction steps to visitors. 

As per news reports, BSE MD and CEO Sundararaman Ramamurthy said the tie-up brings together BSE’s technology infrastructure and India Post’s presence to expand access for households across different regions. 

Read More: 6 Key SEBI Mutual Fund Updates in 2025 Investors Must Note! 

Conclusion 

The initiative plans to reduce distribution gaps by combining a large physical network with a standardised transaction platform. Its effectiveness will depend on staff training, operational rollout, and adoption across post offices. 

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