Key Points:
- What happened? PFRDA formally appointed Bank of Baroda as a Sponsor of a Pension Fund under the PFRDA Act, 2013.
- When was the certificate given? The certificate was handed over on 1 October 2026 during NPS Divas 2026 to Debadatta Chand, Managing Director & CEO of Bank of Baroda.
- Why is it important? BoB became the second Public Sector Bank (PSB) to enter the pension fund sponsorship segment. This expands the participation of large public-sector financial institutions in India's pension fund management ecosystem.
- What does a Sponsor do? A Sponsor is the entity that promotes and sets up a pension fund. The actual management of pension assets is undertaken through a pension fund entity regulated and registered by PFRDA.
- Earlier approval: In July 2026, PFRDA approved Bank of Baroda, Motilal Oswal AMC and Bajaj as sponsors of pension funds under its revised framework. PFRDA had also issued an on-tap notice on 16 July 2026 inviting proposals for selection of pension fund sponsors.
- Purpose of expanding sponsors: The move is aimed at increasing competition, choice and institutional participation in the pension sector, particularly under the National Pension System (NPS).
Question:
Q1.Bank of Baroda became the second public sector bank in 2026 to receive approval from PFRDA for which of the following?
a) Setting up a mutual fund
b) Managing insurance policies
c) Sponsoring a pension fund
d) Operating a payment bank
Correct Answer: (c) PFRDA granted Bank of Baroda a Certificate of Appointment as Sponsor of a Pension Fund on 1 October 2026, enabling it to enter the pension fund business under the PFRDA regulatory framework.
