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The history of the Post Office is deeply intertwined with human civilization. References to organized messenger systems appear as early as the Atharvaveda, while the oldest known letter, inscribed on clay tablets, dates back to 2095 BCE. Egypt had a postal system as early as 2000 BCE.

In India, Qutb-ud-din Aibak, the first Sultan of Delhi (1206–1210), established a messenger network, later expanded into a ‘horse and foot runner’ service by Alauddin Khilji in 1296. Sher Shah Suri revolutionized the system in 1541 by introducing the horse-dak service and building the 4,800 km Grand Trunk Road from Bengal to Peshawar with 1,700 relay posts for mail delivery. Emperor Akbar further developed this infrastructure by employing postal runners and setting up relay stations in 1556.

The modern postal system in India emerged in the 18th century under British rule. Lord Clive laid its foundation in 1766, and during Warren Hastings’ tenure as Governor General, pre-paid postage tokens known as ‘Copper Tickets’ were introduced in Patna in 1774. The same year saw the establishment of the Calcutta General Post Office, opening postal services to the public for the first time.

Post-Independence, India Post became a vital national institution, connecting the country’s remotest corners. Beyond delivering mail, it offered services such as postal and rural insurance, small savings schemes, bill collection, and, more recently, banking through the India Post Payments Bank (established in 2017).

Today, with over 1.65 lakh post offices—many in remote and underserved areas—India Post serves as “The Last Mile Reach” of the nation. In 2023–24 alone, over 5,700 new branches were added, ensuring that every village has access to a post office within 5 km. This expansive network makes India Post an ideal partner for financial inclusion. Recognizing this potential, the Association of Mutual Funds in India (AMFI) has begun training postmen to distribute mutual funds.

The rationale is clear: mutual fund penetration is rising beyond metropolitan centers, with 35% of investors now coming from smaller towns. As investment habits shift towards long-term vehicles like Systematic Investment Plans (SIPs), trusted postmen can play a pivotal role in reaching rural households.

Historically, the Dak Ghar and Dakiya have been synonymous with trust, serving as informal bankers long before the government’s 2019 National Strategy for Financial Inclusion. For India Post, mutual fund distribution not only offers a new revenue stream but also leverages this trust to promote financial literacy and investment in rural India

AMFI’s past collaborations with India Post, such as successfully linking UIDAI numbers to investor accounts, demonstrate the effectiveness of this partnership. The new three-year agreement starting in 2025 could transform India Post into a key player in distributing market-linked products. AMFI is also grooming 20,000 college students in states like Meghalaya, Bihar, Andhra Pradesh, and Odisha to expand the distributor base.

While email, messaging apps, and private couriers have reduced traditional mail volumes, they have also freed up a vast workforce within India Post. Training this workforce to distribute financial products—from mutual funds to bonds, IPOs, and fixed deposits—could redefine the institution’s role in modern India.