Australia Post has apologised "unreservedly" for a poorly worded sign displayed in an Adelaide store that intended to advise customers that it was unable to take photos for Indian passports.
The ABC understands the sign was displayed at the Rundle Mall post office in Adelaide's CBD on Wednesday afternoon and was removed on Thursday morning as soon as management became aware of it.
A photo of the sign, which has been shared on social media, shows a large font with the words, "We unfortunately CAN NOT take INDIAN photos", with the word Indian underlined and capitalised.
In a preceding sentence in a smaller font, the sign states this was "due to our lighting and quality of photo background".
The sign was met with a backlash by social media users.
"They might not [have] intended, but the sign is misleading and sounds like a racist remark! Stupidly worded," wrote one person.
"Racist signs are really not acceptable. Improve your facilities if this is really an issue," wrote another.
In a statement, Australia Post said it would fully investigate the issue and "will take appropriate action".
"Australia Post apologises unreservedly to the community for any offence caused by an unauthorised sign recently displayed," a spokesperson said.
"As soon as we were made aware, we immediately removed the sign and have spoken with the team member concerned."
It is understood the sign was created locally within the store, without management approval, as a way to inform customers that it was unable to meet the requirements of Indian passport authorities.
The ABC understands Indian passport photos are a different size to Australian passport photos.
'Inexcusable'
"While the wording of this sign is inexcusable, we understand the Indian Consulate had rejected a number of customers' passport photos provided by this Post Office," the Australia Post spokesperson said.
"We have reached out to the High Commission of India to understand the issue with the photographs, so we can rectify this urgently."
Australia Post said it was disappointed in the sign, which did not reflect its values.
"Although no offence was intended, this lapse in judgement falls well below the standard we expect from Australia Post team members," the spokesperson said.
"It's especially disappointing given Australia Post prides itself on its commitment to inclusion and diversity both across our workforce and within our communities.
Australia Post says a third of its workforce is culturally and linguistically diverse, and is made up of 130 nationalities.
Federal Communications Minister Michelle Rowland said she has written a letter to Australia Post chief executive officer Paul Graham asking what steps the company would take "to prevent similar incidents occurring".
Ms Rowland said in the letter that she was "deeply disturbed" by the sign, which she said was "unacceptable and has caused great offence".
"No one should be discriminated against because of the colour of their skin or where they are from," she wrote.