Do you know that India Post is also playing an important role in extending the capital market’s reach to the common man by providing easy access to market-based investment options? With its vast network, India Post is currently retailing UTI’s Mutual Fund products through over 2000 posts offices, which are involved in the distribution of MFs and Securities.
Notably, the Post Office has traditionally been a distributor of financial services like money orders to banking services. Since the Post Office Savings Bank is the largest retail bank in the country, operating from over 1,50,000 branches, Department of Posts has started retailing mutual funds and bonds to leverage its strength of the postal network.
According to India Post website, “At present select schemes of UTI Mutual Fund only are retailed through the designated post offices in the country through NISM/EUIN certified staff.”
Among other financial services that India Post is extending, a few are given below:
1. International Money Transfer: This scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India, according to India Post, adding “Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible.” No outward remittance from India is permissible under MTSS.
This service was implemented following the collaboration of the Department of Posts with the Western Union Financial Services to enable instantaneous remittance of money from around 195 countries and territories to India. Now, a recipient can collect the money in minutes after the sender has made the remittance.
The service is targeted to particularly to fulfill the needs of NRI dependent families in India, visiting International tourists and foreign students studying in India, the website said.
2. IFS Money Order: An International Financial System (IFS), a software developed by UPU, has been developed to coordinate international remittance services among the partner countries. Presently, the service is operational with La Poste Group, France and UAE.
The remittances, which are being paid through eMO service, can be received at any of the 17,500 post offices on eMO network. The payee receives the full amount in Indian Rupees, up to Rs 50,000 in cash, according to the website.
3. Instant Money Order (IMO): The instant online money transfer service is instant, convenient, reliable and affordable. It is an instant web-based money transfer service through Post Offices (IMO Centre) in the country between two resident individuals in Indian territory. You can transfer money from Rs 1,000 to Rs 50,000 from designated IMO Post Offices, according to India Post.