PFRDA Appoints Bank of Baroda as Pension Fund Sponsor, Becomes Second PSU Bank in Sector

PFRDA has appointed Bank of Baroda as a pension fund sponsor, marking the lender’s entry into the pension fund business and strengthening participation in India’s NPS ecosystem.

PFRDA Appoints Bank of Baroda as Pension Fund Sponsor

The Pension Fund Regulatory and Development Authority (PFRDA) has formally appointed Bank of Baroda as a sponsor of a pension fund, marking the public sector lender’s entry into India’s pension fund business.

The appointment was formalised on October 1 during the NPS Divas 2026 programme. With this development, Bank of Baroda has become the second public sector bank to enter the pension fund segment.

Bank of Baroda Receives Certificate of Appointment

Bank of Baroda received its Certificate of Appointment as Sponsor of the Pension Fund under Section 27 of the PFRDA Act, 2013. The certificate was presented during the NPS Divas 2026 event, formally completing the bank’s entry into the pension fund business.

The development expands the role of Bank of Baroda beyond traditional banking services and gives it an opportunity to participate directly in the pension fund ecosystem.

PFRDA Had Approved Bank as Sponsor Earlier

PFRDA had previously approved Bank of Baroda, Motilal Oswal Asset Management Company (AMC) and Bajaj as sponsors of pension funds in July 2026.

The regulator had invited applications for pension fund sponsors under its 2026 framework. The guidelines allow pension funds to manage assets accumulated under the National Pension System (NPS) across government and private-sector schemes.

The appointment is part of PFRDA’s broader efforts to expand the pension sector and encourage greater participation in the NPS.

Bank of Baroda Becomes Second PSU Bank in Segment

Bank of Baroda’s entry makes it the second public sector bank to participate in the pension fund business.

The development is significant for the banking and pension sectors as public sector banks have a large customer base and extensive distribution networks across India.

Their participation in the pension ecosystem can help expand awareness and access to retirement-oriented financial products among existing and potential NPS subscribers.

PFRDA Focuses on Expanding NPS Ecosystem

PFRDA has been working to broaden participation in the National Pension System and strengthen the overall pension ecosystem.

The regulator regularly publishes pension-fund-wise and scheme-wise information relating to NPS assets and subscriber numbers. Such data provides insights into the growth and participation trends within the pension system.

The entry of additional pension fund sponsors is expected to increase the number of institutions participating in the management of NPS assets.

Bank of Baroda Expands Digital NPS Access

Alongside its entry into the pension fund business, Bank of Baroda has also introduced Tatkal NPS on the BHIM app.

The digital onboarding facility allows customers to open an NPS account through the BHIM platform, offering a simplified route for accessing the pension scheme.

The initiative forms part of efforts to make NPS registration more convenient through digital channels and expand access to pension products.

Tatkal NPS Featured at NPS Divas 2026

Tatkal NPS was also included in the agenda of the NPS Divas 2026 programme organised by PFRDA. The event brought together representatives from banks, central recordkeeping agencies, NPCI BHIM Services and government departments.

The programme focused on developments and initiatives aimed at strengthening NPS participation and improving the accessibility of pension-related services.

Key Officials Present at Appointment Ceremony

The certificate was presented by Sanjay Lohiya, Secretary, Department of Financial Services, to Debadatta Chand, Managing Director and CEO of Bank of Baroda.

PFRDA Chairperson S Ramann and NPS Trust Chairperson Dinesh Kumar Khara were also present during the ceremony.

The participation of senior officials from the government, PFRDA and Bank of Baroda highlighted the significance of the lender’s formal entry into the pension fund business.

What Bank of Baroda’s Entry Means for NPS

Bank of Baroda’s appointment adds another major financial institution to the pension fund ecosystem and provides greater institutional participation in NPS asset management.

The bank’s extensive presence across the country, combined with its digital initiatives, could support broader outreach for pension products.

The appointment also reflects the continuing expansion of India’s pension ecosystem as regulators and financial institutions seek to increase participation in organised retirement savings.

Conclusion

PFRDA’s appointment of Bank of Baroda as a pension fund sponsor marks an important expansion of the bank’s financial services and strengthens participation by public sector lenders in India’s pension ecosystem. Alongside its entry into the pension fund business, the bank’s Tatkal NPS facility on the BHIM app adds a digital channel for NPS account opening. The developments are part of wider efforts to expand access to the National Pension System and organised retirement savings.