New Delhi [India], August 18 (ANI): Finance Minister Nirmala Sitharaman on Tuesday asked public sector banks (PSBs) to consider launching a focused, month-long 'Banking for Youth' campaign from October 2, 2026, as she called on state-owned lenders to build stronger and longer-term relationships with young Indians.
"I would like Public Sector Banks to consider launching a focused, month-long 'Banking for Youth' campaign commencing 2nd October 2026 (Gandhi Jayanti), with particular outreach to young citizens above 16 years of age," Sitharaman said in her closing remarks on the second day of the PSB Confluence 2026. She said the campaign could be coordinated through the Department of Financial Services (DFS) and the Indian Banks' Association (IBA).
The Finance Minister said the campaign should reach young people at the beginning of their financial journey, bring them into the formal banking system and establish an early connection with them.
Instead of waiting for young customers to visit branches, Sitharaman suggested that banks reach them through colleges, universities, skill-building institutions and other campuses. She also proposed dedicated "Yuva Kiosks" or "Yuva Banking Mitra" at bank branches to help young customers navigate banking and financial services.
Sitharaman also pointed to the perception gap between public and private sector banks among younger customers, saying private banks appeared to have an image of being banks that were "cool enough as well", and urged PSBs to keep pace with the expectations of young Indians.
Highlighting the changing expectations of younger customers, Sitharaman said, "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 also suggested that the IBA explore a web- and mobile-friendly portal dedicated to banking awareness for young people. The portal could provide simple information on safe banking practices, KYC, education and skilling finance, entrepreneurship and other financial services, while also helping users locate their nearest PSB branch.
Sitharaman stressed that the initiative should go beyond merely opening accounts and instead aim to establish relationships that follow customers from campus to their careers and later stages of their lives.
"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, adding that banks should plan for customers' progression across stages such as education, employment and marriage.
"Most importantly, this should not remain a one-month exercise," she said, noting that a banking relationship established between the ages of 16 and 18 could deepen over decades as customers move through education, employment, entrepreneurship, home ownership, investment and wealth creation.
The Finance Minister also asked PSBs to improve the quality of priority sector lending, particularly credit to farmers, MSMEs, MUDRA beneficiaries, weaker sections and disadvantaged communities.
"Our objective must be to expand credit while also improving the quality of Priority Sector Lending. Its success should be assessed not merely by numerical targets, but by whether the credit is timely, whether it is adequate and whether it is productive," she said.
On agricultural lending, Sitharaman asked banks to substantially expand credit to farmers growing pulses and oilseeds and stressed that financing should remain focused on small and marginal farmers.
"The focus must remain firmly on small and marginal farmers. Agricultural lending cannot become concentrated among larger farmers merely because they are easier to finance," she said.
Sitharaman said PSBs now operate from a position of considerably greater strength and should use their extensive customer base, branch networks and growing digital capabilities to build stronger competitive positions and remain at the forefront of India's next phase of economic growth. (ANI)
FM Sitharaman suggests public sector banks focus on Gen Z
