In a major push towards inclusive and sustainable rural development, the Department of Posts (DoP) and the Ministry of Rural Development (MoRD) signed a landmark Memorandum of Understanding (MoU) to deepen collaboration on rural financial inclusion, livelihood promotion, digital empowerment, and logistics enablement for Self-Help Groups (SHGs) and rural households across India.
The MoU was signed in New Delhi in the presence of Union Minister of Communications and Development of North Eastern Region Jyotiraditya M. Scindia and Union Minister of Rural Development and Agriculture & Farmers’ Welfare Shivraj Singh Chouhan.
Aligned with ‘Dak Sewa, Jan Sewa’ Vision
The collaboration aligns with the Government of India’s vision to strengthen “Dak Sewa, Jan Sewa”, repositioning India Post as a key driver of the rural economy. It also reflects priorities outlined in the Union Budget 2025–26, which emphasises leveraging India Post’s unmatched reach to promote financial inclusion, digital services, and livelihood opportunities in rural India.
India Post’s Network to Power Last-Mile Delivery
With over 1.5 lakh rural post offices, India Post Payments Bank (IPPB), and nearly 2.4 lakh Gramin Dak Sevaks, the Department of Posts will play a pivotal role in enabling last-mile delivery of financial and digital services, including in remote and underserved regions.
The partnership aims to:
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Expand financial inclusion and doorstep banking
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Promote entrepreneurship and women-led livelihoods
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Strengthen digital capabilities at the grassroots
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Improve market access for SHGs and community institutions
Doorstep Banking and Digital Empowerment
Under the MoU, IPPB will facilitate doorstep banking services, including savings, payments, and remittances through its digitally enabled platform. To empower SHG members, electronic tablets and Point of Sale (PoS) machines will be provided to enable:
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Seamless digital transactions
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Cashless payments
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Improved bookkeeping and transparency
Certificates will also be issued to SHG members to formally recognise their participation, enhancing credibility for financial and market linkages.
Market Access and Logistics Enablement
Market access for SHG products will be strengthened through Dak Ghar Niryat Kendras, enabling domestic and international marketing and export opportunities for rural enterprises. India Post’s logistics and distribution capabilities will support efficient movement of goods, helping SHGs scale their businesses beyond local markets.
Aadhaar, Insurance and New Livelihood Opportunities
The collaboration will also support Aadhaar enrolment and updation in rural areas, easing beneficiary verification for MoRD schemes. Insurance coverage will be expanded through Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), with opportunities for SHG members to work as insurance agents.
Additionally, IPPB will onboard and train women SHG members as Business Correspondents, creating new livelihood opportunities while enhancing financial literacy and digital adoption in rural communities.
Transforming India Post into a Rural Growth Enabler
This inter-ministerial partnership underscores the Department of Posts’ evolving role as a trusted, technology-enabled, and citizen-centric institution. By converging postal services with rural development programmes, the initiative aims to accelerate women-led development, financial inclusion, entrepreneurship, and rural prosperity across the country.
Conclusion
The MoU between the Department of Posts and the Ministry of Rural Development marks a significant milestone in India’s rural transformation journey. By combining India Post’s vast last-mile network with MoRD’s development programmes, the partnership is set to deliver inclusive growth, stronger livelihoods, and digital empowerment, reinforcing the Government’s commitment to building a resilient and prosperous rural India.
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Source: PIB
