- BoB becomes second public sector bank to enter pension fund business, widening choice in NPS
- PFRDA appointment marks lender’s expansion into India’s long-term retirement savings ecosystem
- Tatkal NPS onboarded on BHIM App to enable faster digital pension enrolment
- Move combines pension reach with digital convenience as India seeks wider retirement coverage
NE BANKING BUREAU
NEW DELHI, OCT 2
Banking’s role in India’s retirement-savings landscape is entering a new phase, with Bank of Baroda (BoB) becoming the second public sector bank to enter the pension fund business—a move that combines a traditional banking network with a rapidly expanding digital pension ecosystem.
Marking NPS Divas 2026, Bank of Baroda on Thursday received the PFRDA Certificate of Appointment as Sponsor of a Pension Fund under Section 27 of the PFRDA Act, 2013, formally marking its entry into the pension fund business.
The certificate was presented by Sanjay Lohiya, IAS, Secretary, Department of Financial Services (DFS), to Dr Debadatta Chand, Managing Director & CEO, Bank of Baroda, in the presence of S Ramann, Chairperson, PFRDA, and Dinesh Kumar Khara, Chairperson, NPS Trust, in New Delhi.
The development comes against a backdrop of regulatory efforts to broaden participation in the pension ecosystem. PFRDA has been expanding the framework for pension-fund sponsors and, in 2025, approved in principle a framework permitting scheduled commercial banks to independently set up pension funds, with the stated objective of strengthening competition and safeguarding subscriber interests.
A second PSU bank enters the pension-fund space
With its appointment as sponsor, Bank of Baroda joins the pension-fund segment at a time when retirement savings are becoming an increasingly important component of household financial planning.
PFRDA’s current list includes pension funds sponsored by institutions such as LIC, SBI, UTI, HDFC, ICICI, Kotak Mahindra, Aditya Birla Sun Life, Tata, Axis and DSP.
For BoB, the move extends its financial-services footprint beyond conventional banking and into the management of long-term retirement assets.
The bank has also incorporated BoB Pension Fund Management Company Ltd, with Bank of Baroda as the sponsor, according to a report published on October 2.
Tatkal NPS meets BHIM
The bank simultaneously announced that it has become among the first few banks to onboard Tatkal NPS on the BHIM App as part of the second-phase rollout.
The integration is designed to make digital NPS onboarding more accessible by bringing the Tatkal NPS facility onto the widely used BHIM digital-payments platform.
The move could be particularly significant from a consumer-access perspective: pension enrolment is no longer being positioned solely as a branch-based financial-service activity, but increasingly as a digital proposition that can be accessed through familiar payment platforms.
‘Expanding access to retirement solutions’
Commenting on the twin developments, Dr Debadatta Chand, Managing Director & CEO, Bank of Baroda, said: “Today marks an important milestone for Bank of Baroda as we become the second Public Sector Bank to enter the pension fund business. We have also onboarded Tatkal NPS on the BHIM App. These milestones reinforce our commitment in expanding access to retirement solutions and leveraging digital innovation to make pension products more accessible and convenient for customers across the country. We remain focused on supporting greater pension penetration and encouraging long-term financial security for all.”
The emphasis on accessibility is significant as the pension ecosystem increasingly seeks to reach workers and savers outside traditional employer-sponsored retirement arrangements.
Pension awareness meets digital expansion
Organised by PFRDA, NPS Divas 2026 brought together representatives from public and private sector banks, Central Recordkeeping Agencies, NPCI BHIM Services Limited and senior officials from the Department of Financial Services to deliberate on the growth and future of the National Pension System.
PFRDA’s own 2026 material indicates the scale of the broader pension ecosystem: its January 2026 sponsor-selection notice said that, as of October 31, 2025, more than 9 crore subscribers were registered under NPS and Atal Pension Yojana, with assets under management exceeding ₹16 lakh crore.
Bank of Baroda’s entry therefore comes at a time when the pension sector is evolving on two fronts simultaneously—greater institutional participation and easier digital access.
For customers, the larger question will be whether increased competition among pension-fund providers translates into greater awareness, easier access, transparent choices and sustained retirement security.
