(MENAFN- IANS) New Delhi, Aug 23 (IANS) In a significant step towards deepening financial inclusion, the Department of Posts (DoP) and the Association of Mutual Funds in India (AMFI) have joined hands to distribute mutual funds via post offices.

They signed a pioneering Memorandum of Understanding (MoU) during the 30th Foundation Day Celebration of AMFI in Mumbai.

The MoU is valid for three years starting August 22, 2025 to August 21, 2028, with provisions for renewal.

It includes comprehensive safeguards for investor data and service integrity, setting a new benchmark for operational excellence in India's financial services landscape.

This landmark agreement marks the beginning of a new service model where India Post will act as a distributor to facilitate mutual fund investments through its extensive postal network, particularly benefitting citizens in rural and semi-urban areas.

The initiative aims to broaden access to mutual fund products, leveraging the trust and reach of post offices across the country, according to the Ministry of Communications.

Under this agreement, DoP staff will function as mutual fund distributors to enhance mutual fund penetration in smaller towns and rural regions where access to structured financial products has traditionally been limited.

India Post has an extensive presence in rural and semi-urban regions across the country, where awareness about mutual fund investments remains relatively low.

“This partnership is a testament to DoP's commitment to financial inclusion and penetration in the remotest corners of the country while reinforcing AMFI's vision of fostering a professional and investor-friendly mutual fund ecosystem in India,” said an official statement.

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

-IANS

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