Bank of Baroda enters pension fund business after PFRDA appointment

Bank of Baroda has entered the pension fund business after receiving a Certificate of Appointment as a pension fund sponsor from PFRDA. The lender becomes the second public sector bank to enter the segment and will sponsor a fund under the NPS framework

New Delhi: Bank of Baroda has formally entered the pension fund business after receiving the Certificate of Appointment as Sponsor of a Pension Fund from the Pension Fund Regulatory and Development Authority (PFRDA), becoming the second public sector bank to foray into the segment.

The certificate was handed over to Bank of Baroda Managing Director and CEO Debadatta Chand on October 1 during the NPS Divas 2026 event. The appointment enables the public sector lender to sponsor a pension fund under the provisions of the PFRDA Act, 2013.

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The development follows PFRDA’s approval in July 2026 of Bank of Baroda, Motilal Oswal AMC and Bajaj as sponsors of pension funds under the regulator’s revised guidelines.

The framework allows pension funds to manage assets under the National Pension System (NPS) across both government and private-sector schemes.

The regulator has been taking steps to broaden the pension ecosystem and increase participation in the NPS by expanding the pool of pension fund managers and sponsors.

As part of these efforts, PFRDA has also been releasing detailed pension fund-wise and scheme-wise data on NPS assets and subscribers to improve transparency and awareness.

In a parallel initiative aimed at enhancing digital access to retirement savings products, Bank of Baroda has onboarded Tatkal NPS on the BHIM app under the second phase of the facility’s rollout.

The integration will enable users to open NPS accounts through the BHIM platform in a simplified and paperless manner.

Tatkal NPS also featured prominently at the NPS Divas 2026 programme organised by PFRDA, which brought together banks, central recordkeeping agencies, NPCI BHIM Services and government officials to discuss measures for expanding pension coverage and improving subscriber onboarding.

The Certificate of Appointment was presented by Department of Financial Services Secretary Sanjay Lohiya to Debadatta Chand in the presence of PFRDA Chairperson S Ramann and NPS Trust Chairperson Dinesh Kumar Khara, underscoring the significance of the expansion of the pension fund ecosystem in the country.