In a step towards accelerating rural transformation, the Department of Posts (DoP) and the Ministry of Rural Development (MoRD) on Wednesday signed a Memorandum of Understanding (MoU) to strengthen financial inclusion, promote livelihoods and enhance logistics and digital services for Self-Help Groups (SHGs) and rural households across the country.
The MoU was signed in the presence of Union Minister for Communications and Development of North Eastern Region Jyotiraditya M. Scindia and Union Minister for Rural Development and Agriculture & Farmers’ Welfare Shivraj Singh Chouhan.
The collaboration aligns with the government’s vision of strengthening “Dak Sewa, Jan Sewa” and repositioning India Post as a key driver of the rural economy. It also reflects the priorities of the Union Budget 2025–26, which emphasise leveraging India Post’s vast network to expand financial inclusion, digital empowerment and livelihood opportunities in rural India.
With more than 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 central role in delivering financial and digital services at the last mile. The partnership aims to enhance access to banking, promote entrepreneurship, strengthen digital capabilities and improve market linkages for rural women, SHGs and community institutions.
Under the MoU, IPPB will provide doorstep banking services such as savings accounts, payments and remittances through its digital platform. SHG members will be equipped with electronic tablets and Point of Sale (PoS) machines to enable cashless transactions, improve record-keeping and strengthen digital adoption at the grassroots level. Certificates will also be issued to SHG members to formally recognise their participation and enhance their credibility for financial and market linkages.
India Post will ensure last-mile delivery through its extensive network of postal staff and Gramin Dak Sevaks, enabling outreach in remote and underserved regions. Market access for SHG products will be expanded through Dak Ghar Niryat Kendras, facilitating domestic and international marketing and export opportunities for rural enterprises.
The partnership will also support Aadhaar enrolment and updation in rural areas, simplifying beneficiary verification for various MoRD schemes. Insurance coverage is set to expand through the promotion of Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI), with opportunities for SHG members to work as insurance agents.
In addition, IPPB will support capacity building by onboarding and training women from SHGs as Business Correspondents, creating new livelihood opportunities while boosting financial literacy and accelerating digital adoption in rural communities.
According to the Ministry of Communications, the inter-ministerial collaboration highlights the Department of Posts’ evolving role as a technology-enabled, citizen-centric institution and its growing contribution to inclusive growth, women-led development and rural prosperity.
