Bank of Baroda Enters Pension Fund Business in India Now
Bank of Baroda Enters Pension Fund Business, Adds Tatkal NPS to BHIM App
Bank of Baroda has entered the pension fund business after receiving a Certificate of Appointment as Sponsor of a Pension Fund from the Pension Fund Regulatory and Development Authority (PFRDA). The move makes it the second public sector bank in India to enter this business.
The announcement came on October 1, during NPS Divas 2026, an event organised by PFRDA to discuss the growth of the National Pension System (NPS). The bank also joined the second phase of the Tatkal NPS rollout by adding the service to the BHIM app, allowing users to access digital pension account registration through the payment platform.
The two developments mark the bank’s entry into pension fund sponsorship and its participation in efforts to make pension services easier to access through digital channels.
Shri Sanjay Lohiya, Secretary of the Department of Financial Services (DFS), presented the certificate to Dr Debadatta Chand, Managing Director and Chief Executive Officer of Bank of Baroda. The presentation took place in the presence of S Ramann, Chairperson of PFRDA, and Dinesh Kumar Khara, Chairperson of NPS Trust.
The appointment was made under Section 27 of the PFRDA Act, 2013, which provides the legal basis for the appointment of pension fund sponsors.
The framework has opened the door to more organisations entering pension fund management. Reports on the July approvals also named Motilal Oswal Asset Management Company and Bajaj among the organisations approved as sponsors. This adds to the range of institutions involved in managing retirement savings in India.
The National Pension System was introduced in 2004 for central government employees, with some exceptions. It was opened to all Indian citizens in 2009. Over the years, the scheme has expanded to cover government employees, private-sector workers and individuals who choose to save for retirement independently.
Under NPS, subscribers contribute money during their working years. Pension funds invest these contributions in financial assets such as shares, corporate bonds and government securities, according to the investment options and rules of the scheme. The final savings depend on contributions, investment performance, charges and the rules that apply when the subscriber withdraws the money.
PFRDA regulates the system and supervises pension fund operations. A pension fund sponsor sets up and owns the pension fund management company, while the fund manager handles investment decisions. The distinction matters because Bank of Baroda’s new appointment gives it the role of sponsor. It does not, by itself, provide details of the fund’s investment choices, charges, launch date or expected returns.
For savers, a wider range of pension fund managers may offer more choice. However, pension investments carry market risks, and returns are not guaranteed. People need to consider their age, income, financial needs and comfort with investment risk before choosing a pension option.
Tatkal NPS aims to make the process of opening an NPS account quicker through digital registration. Its availability on BHIM gives users another way to begin saving for retirement without depending entirely on traditional, in-person banking procedures.
The service is part of a wider effort by PFRDA to increase the number of people saving for retirement. Digital registration can reduce the time and paperwork involved in opening an account. It may also help people who live far from bank branches or prefer to use mobile applications for financial services.
However, access to an online registration facility does not automatically mean that every user will open a pension account. Awareness of retirement planning, regular income, the ability to save and an understanding of investment risks remain important factors.
Dr Debadatta Chand, Managing Director and CEO of Bank of Baroda, said at the event:
“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 to 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 NPS Divas 2026 programme, organised by PFRDA on October 1, 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.
The discussions centred on the future of NPS, ways to bring more people into the pension system and improvements to account registration.
Central Recordkeeping Agencies play an important role in maintaining pension account records and processing transactions. Their work supports the administration of the system as subscribers contribute money, change investment choices and manage their accounts.
The event also reflected the growing role of digital services in India’s financial sector. Mobile payments and online banking have changed how people transfer money and use financial products. Pension services are now becoming part of this wider shift.
Bank of Baroda’s entry into pension fund sponsorship and its participation in the BHIM-based Tatkal NPS service place the bank in two areas of the retirement savings market: managing the ownership structure of a pension fund and helping people access the NPS through a digital platform.
The bank’s next steps, including the start of its pension fund operations and the services it offers to subscribers, will determine how its new role develops in the coming months.
For people planning their retirement, the key details to watch will include the fund’s investment options, management charges, performance disclosures and the ease of opening and maintaining an account. These factors will help savers understand the choices available as more institutions join India’s pension sector.
