The Department of Posts has put its mutual fund distribution initiative on hold, directing all its circles to keep MF-related activities in "abeyance" with immediate effect, pending inter-ministerial consultations, NDTV Profit has assessed from a DoP order.
The hold covers the full scope of the initiative, including NISM training, examinations, EUIN registration and mutual fund distribution activities. The directive applies across all DoP circles nationwide.
The pause is significant given the scale of the ambition behind the initiative. The Department of Posts had signed a memorandum of understanding with NSE in February to distribute mutual funds through India Post's network of 1.64 lakh post offices.
This move that was widely seen as a potential game-changer for financial inclusion, bringing mutual fund access to hundreds of millions of Indians in semi-urban and rural areas who remain outside the reach of conventional distribution channels.
NDTV Profit reached out to the Department of Posts for a comment. A response is awaited.
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