Besides a consistent showing in first-class cricket this year, Karthik has been the second-highest scorer (361 runs) for his IPL team Gujarat Lions.
Pandey, who plays for Kolkata Knight Riders in IPL, suffered a side strain during a practice session. Find us on Facebook too!
In recalling Karthik, the selectors have rewarded his excellent domestic form across formats. He scored 396 runs at an average of over 49 and a strike rate of 128.57 but now has also been ruled out of the IPL.
Karthik had last played in India colours in the Asia Cup contest against Afghanistan in 2014.
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He was part of India's 2013 Champions Trophy-winning squad and has been in strong form on the domestic circuit this year.
India's defence of the Champions Trophy begins against New Zealand at the Oval on May 28.
Having played 23 Tests and 71 ODIs for India, Karthik pipped another glovesman Rishabh Pant, who was also a part of the reserves.
Squad: Virat Kohli (captain), Shikhar Dhawan, Rohit Sharma, Ajinkya Rahane, MS Dhoni (wk), Yuvraj Singh, Kedar Jadhav, Hardik Pandya, R Ashwin, Ravindra Jadeja, Mohammed Shami, Umesh Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Dinesh Karthik.