"Under the agreement, Infosys and India Post will embark on a transformational initiative, which encompasses financial services system integration," the company said in a statement.
"This project, estimated at Rs.700 crore, aims to transform India Post into a technology-enabled and autonomous market leader, by revolutionizing its financial operations and end-user services," it added.
As financial services system integrator, Infosys will implement and manage India Post's core banking and insurance products in its banking and insurance operations - covering more than 200 million customers across urban and rural India.
It will install 1,000 ATMs for India Post for its delivery channel and implement an electronic content management system to manage millions of documents generated as part of India Post's financial operations.
Speaking about the deal, A.S. Prasad, deputy director general, financial services, India Post said, that this programme is expected to enhance India Post's services.
"It will bring us on par with the best in the banking industry; and will help us expand the reach and effectiveness of our operations through technology enablement of India Post employees," said Prasad.
This is part of the India Post 2012 modernisation programme that aims at bringing transparency, agility, flexibility and scalability to India Post's operations.