Second public sector bank enters NPS market as pension fund sponsor

Bank of Baroda has officially entered the pension fund business, receiving a sponsorship certificate from the Pension Fund Regulatory and Development Authority (PFRDA). The certificate was handed to Managing Director and CEO Debdutt Chand during the NPS Day 2026 celebrations on October 1.

The appointment marks the bank as the second public sector institution authorized to sponsor pension funds under the PFRDA Act, 2013. The decision follows July 2026 approvals granted to Motilal Oswal AMC and Bajaj Capital under updated regulatory guidelines.

With this new role, Bank of Baroda will manage the assets of NPS schemes from both government and private sectors, contributing to a broader, more inclusive pension ecosystem. PFRDA continues to expand the range of approved fund managers and sponsors to increase participation and transparency.

In a digital push, the bank also rolled out instant NPS services on the BHIM app, enabling users to open NPS accounts quickly and without paper, reinforcing the push for greater digital access to retirement savings.