Prelims: Current events of national and international importance | Economy
Why in News?
Recently, Bank of Baroda (BoB) has established BoB Pension Fund Management Company Ltd to commence operations in the pension fund management sector.
- BoB is the 2nd Public Sector Bank (PSB) to enter this sector, following State Bank of India (SBI).
- The Bank of Baroda received the PFRDA Certificate of Appointment as Sponsor of the Pension Fund under Section 27 of the PFRDA Act, 2013.
Pension Fund Regulatory and Development Authority (PFRDA)
- The Pension Fund Regulatory and Development Authority serves as the statutory regulator for the pension sector in India.
- Established under the PFRDA Act, 2013.
- It regulates and develops the pension sector, and oversees pension fund managers as well as related intermediaries.
Public Sector Banks in the Pension Fund Business
- State Bank of India – It was the 1st public sector bank to enter the pension fund business.
- Bank of Baroda – It was the 2nd public sector bank to enter the pension fund business.
- New subsidiary – BoB Pension Fund Management Company Ltd.
National Pension System and Digital Initiatives
- Bank of Baroda has integrated the Tatkal National Pension System (NPS) with the BHIM application.
Significance
- This integration enables digital onboarding for the National Pension System (NPS).
- It improves accessibility to pension products.
- It also promotes the digital delivery of retirement savings services.
Reference
Business Line | Pension Fund Subsidiary
