MoRD, India Post Join Hands for Rural Growth

The Ministry of Rural Development and the Department of Posts have signed a Memorandum of Understanding to institutionalise convergence for expanding financial services, logistics and market access in rural India, giving concrete shape to the Union Budget 2025 vision of positioning India Post as a key driver of rural economic transformation. The MoU was signed on 7 January 2026 in the presence of Union Minister for Rural Development and Agriculture and Farmers’ Welfare Shivraj Singh Chouhan and Union Minister for Communications and Development of the North Eastern Region Jyotiraditya M. Scindia, along with Ministers of State and senior officials from both departments.

Addressing the event, Mr Chouhan said the government was working through a whole-of-government approach to achieve shared national objectives under the Prime Minister’s vision of integrated governance and inclusive development. He stressed that development goes beyond infrastructure to include livelihood creation, dignity and self-reliance at the grassroots, adding that coordinated action across ministries and empowered rural communities was steadily advancing the goal of a developed and self-reliant India.

Mr Scindia said India Post Payments Bank was playing a critical role in strengthening last-mile service delivery. Under the initiative, associated institutions would receive comprehensive training and be equipped with electronic tablets, point-of-sale machines and certification, enabling doorstep delivery of services such as post office savings schemes, the Sukanya Samriddhi Yojana, cash transfer facilities and other financial products.

The partnership brings together the grassroots institutional network of the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission and the nationwide reach of India Post, which includes more than 150,000 rural post offices, IPPB and a large network of Dak Sevaks. This convergence will enable integrated financial and logistics services for Self-Help Groups, women entrepreneurs, rural enterprises and MSMEs.

Under the MoU, the mission will promote adoption of savings, deposit, insurance and pension products offered by India Post among SHG households and identify SHG women to be trained and deployed as Business Correspondents. India Post, through IPPB, will provide end-to-end support including onboarding, handholding, technology-enabled monitoring dashboards and exploration of customised insurance solutions, deepening last-mile financial access in rural areas.

The collaboration will also open new market opportunities for women-led SHG enterprises by integrating them with India Post’s logistics ecosystem. The mission will identify SHG and federation-level enterprises with logistics potential and support capacity building in packaging, documentation and export readiness, while India Post will extend logistics, packaging and export facilitation services, including through Dak Niryat Kendras, and explore promotional avenues for SHG products through its extensive postal network.

The MoU is expected to significantly enhance financial inclusion, improve market access and create sustainable livelihood opportunities for rural women and entrepreneurs, supporting inclusive growth and the vision of Viksit Bharat.