PFRDA names Bank of Baroda as pension fund sponsor, second PSB in NPS
Synopsis
Bank of Baroda has become only the second public sector bank to formally enter the NPS business, receiving PFRDA's sponsor certificate at NPS Divas 2026. Paired with its Tatkal NPS integration on the BHIM app, the lender's entry signals a deliberate regulatory push to widen India's still-shallow pension coverage through both institutional competition and digital access.
Key Takeaways
Bank of Baroda received the Certificate of Appointment as Sponsor of a Pension Fund from PFRDA on 1 October 2026 .
It becomes the second public sector bank to enter the National Pension System (NPS) business.
PFRDA had approved Bank of Baroda , Motilal Oswal AMC , and Bajaj as pension fund sponsors in July 2026 .
The certificate was presented by DFS Secretary Sanjay Lohiya in the presence of PFRDA Chairperson S Ramann and NPS Trust Chairperson Dinesh Kumar Khara .
Bank of Baroda has also onboarded Tatkal NPS on the BHIM app , enabling paperless NPS account opening.
The Pension Fund Regulatory and Development Authority (PFRDA) has formally appointed Bank of Baroda as a sponsor of a pension fund, making it the second public sector bank to enter the National Pension System (NPS) business. The Certificate of Appointment as Sponsor of a Pension Fund was handed over to Bank of Baroda Managing Director and CEO Debadatta Chand on 1 October 2026 during the NPS Divas 2026 event in New Delhi.
How the Appointment Came About
The appointment follows PFRDA's approval in July 2026 of three new pension fund sponsors — Bank of Baroda, Motilal Oswal AMC, and Bajaj — under the regulator's revised guidelines. The framework permits these sponsors to manage assets under the NPS across both government and private-sector schemes, broadening the competitive landscape for retirement savings management in India.
The certificate was formally 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, signalling regulatory and governmental endorsement of the pension ecosystem's expansion.
PFRDA's Broader Push to Widen Pension Coverage
The regulator has been systematically working to expand participation in the NPS by enlarging the pool of pension fund managers and sponsors. As part of this effort, PFRDA has also begun releasing detailed pension fund-wise and scheme-wise data on NPS assets and subscribers, a step aimed at improving transparency and building public awareness about retirement savings products.
This is consistent with a wider regulatory push — the NPS subscriber base has grown steadily over recent years, yet pension penetration in India remains low relative to the workforce size, making broader institutional participation a stated policy priority.
Bank of Baroda Integrates Tatkal NPS on BHIM App
In a parallel digital initiative, Bank of Baroda has onboarded Tatkal NPS on the BHIM app under the second phase of the facility's rollout. The integration enables users to open NPS accounts through the BHIM platform in a simplified, paperless manner, lowering the barrier for first-time pension subscribers.
Tatkal NPS also featured prominently at the NPS Divas 2026 programme, which brought together banks, central recordkeeping agencies, NPCI BHIM Services, and government officials to discuss strategies for expanding pension coverage and improving subscriber onboarding across the country.
What This Means for NPS Subscribers
With more sponsors and fund managers entering the NPS ecosystem, subscribers are likely to see greater product competition and potentially improved fund performance over time. The digital push through BHIM is also expected to accelerate NPS penetration among younger, mobile-first users who may not have previously considered pension accounts. Critics and analysts will be watching whether the addition of new sponsors translates into measurable gains in subscriber numbers and assets under management in the near term.
Point of View
And adding fund managers alone will not fix the deeper problem of low financial awareness and informal-sector exclusion. The Tatkal NPS-BHIM integration is a meaningful digital nudge, but it reaches only the already-banked and smartphone-enabled population.
NationPress
2 Oct 2026
Frequently Asked Questions
What is the PFRDA pension fund sponsor certificate received by Bank of Baroda?
It is the Certificate of Appointment as Sponsor of a Pension Fund issued by the Pension Fund Regulatory and Development Authority, which formally authorises Bank of Baroda to sponsor a pension fund and manage assets under the National Pension System. The certificate was handed over on 1 October 2026 at the NPS Divas 2026 event in New Delhi.
Is Bank of Baroda the first public sector bank to enter the NPS?
No. Bank of Baroda is the second public sector bank to receive a pension fund sponsor appointment from PFRDA. The first PSB to enter this space preceded it under an earlier licensing round.
Who else was approved as a pension fund sponsor alongside Bank of Baroda?
PFRDA approved three new pension fund sponsors in July 2026 — Bank of Baroda, Motilal Oswal AMC, and Bajaj — under its revised guidelines for expanding the NPS ecosystem.
What is Tatkal NPS on the BHIM app?
Tatkal NPS is a facility integrated into the BHIM app that allows users to open National Pension System accounts in a simplified, paperless manner. Bank of Baroda onboarded the feature under the second phase of its rollout, targeting mobile-first users who may not have previously accessed pension products.
Why is PFRDA expanding the number of pension fund sponsors?
PFRDA is broadening the pool of sponsors and fund managers to increase competition, improve transparency, and grow NPS participation — particularly among private-sector workers. The regulator has also begun releasing granular fund-wise and scheme-wise subscriber data to build public awareness about retirement savings.
