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Informist, Tuesday, Aug. 18, 2026

 

--Sitharaman: Larger objective for PSU bks must be to provide lifelong pdts 

--Sitharaman: Need PSU banks 'not to be not cool' 

--Sitharaman: Bks must sensitise youth for maintaining healthy credit scores 

--Sitharaman: Moot Yuva Kiosk, Youth mitra plans to up banking for youth 

--Sitharaman:To launch focussed 1-month long banking for youth campaign Oct 2 

--Sitharaman: Need a focussed campaign on banking for youth 

--CONTEXT: Finance Minister Sitharaman speaking at PSB Confluence 2026 

--Sitharaman: Need to use PSU bks' strength with bigger ambitions

 

NEW DELHI - Finance Minister Nirmala Sitharaman Tuesday asked state-owned banks to be more "cool" to attract young customers who will stay with the banking ecosystem throughout their lifecycle. There is a perception that public sector banks are not as cooperative as private banks and that needs to change, Sitharaman said.

 

"Banking is also the foundational infrastructure of a person’s livelihood journey. Hence, financial capability should develop seamlessly alongside adulthood, not as a reactive, stressful adjustment upon starting one's first professional engagement," Sitharaman said in her address at the PSB Confluence 2026. Engaging them early presents both an important responsibility and a significant opportunity for banks, she said. 

 

Public sector banks must consider launching a focused, month-long 'Banking for Youth’ campaign from Oct. 2 to onboard young citizens above 16 years of age. The campaign will be coordinated through the Department of Financial Services and Indian Banks Association, she said. "The campaign should actively reach young people at the start of their financial journey, bring them into the formal banking system, and establish an early, meaningful connection."

 

Sitharaman also asked state-owned banks to set up dedicated youth banking spaces such as 'Yuva Kiosks' or to create Yuva Banking Mitra at physical bank branches, where a dedicated employee could help youth navigate their financial journey. 

 

She said equal emphasis must be given to building awareness of the formal credit ecosystem, including credit scores, various bank credit products, and government credit schemes. This will enable youth to access finance more easily for their future entrepreneurial journey. "Simultaneously, banks should also sensitise our youth about the importance of maintaining good credit scores and history for responsible credit discipline," the finance minister said. 

 

Sitharaman also suggested PSU banks can complement their banking propositions with lifestyle-linked benefits to attract young customers, including coupons or vouchers for fitness centres, yoga centres and credible mental wellness platforms. "Young Indians have grown up with smartphones. They expect banking to be simple, intuitive, personalised and available around the clock. Public sector banks must therefore keep pace with these expectations," she said. 

 

As part of the 'Banking for Youth' campaign, the Indian Banks Association can also explore launching a web- and mobile-friendly portal dedicated to banking awareness for youth, she said. This portal could be a single point where young people can understand banking services and financial opportunities suited to their needs and connect with the appropriate banking services.

 

"The portal could be designed from the perspective of a young person entering the financial system, with simple and youth-friendly FAQs and guidance on safe banking practices, KYC, education and skilling, finance, entrepreneurship and other relevant financial services," she said. "The portal can also perhaps guide them to the nearest PSB branch, where they can open a Basic Savings Bank Deposit Account (BSBDA) with no banking charges, interact with bank officials and access appropriate banking services."

 

While the overall campaign can have a common framework, each of the 12 PSU banks should develop its own strategy to attract and engage youth, based on its product offering, regional presence and institutional strengths, she said. "The larger objective should be to build a long-term banking relationship from campus to career and beyond, rather than a one-time account-opening engagement," she said. "Banks should plan for seamless progression across life stages (education, job, marriage) and aim to become the preferred financial partner." End

 

Reported by Priyasmita Dutta 

Edited by Saji George Titus

 

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