Public sector banks are operating with “considerable strength”, and the task now is to use that strength with “greater ambition”, Union Finance Minister Nirmala Sitharaman said on Tuesday, asking state-run lenders to step up their engagement with India's youth and align banking services with their changing expectations.
Speaking at the PSB Confluence, Sitharaman asked public sector banks to launch a month-long 'Banking for Youth' campaign from October 2, 2026, with a particular focus on citizens above 16 years of age.
The campaign should be taken directly to young people rather than waiting for them to visit bank branches, she said, suggesting colleges, universities, skill-building institutions and other campuses as key touchpoints for account-opening initiatives, financial awareness and direct engagement.
"Public sector banks are operating with considerable strength, the task now is to use it with greater ambition," Sitharaman said.
She asked banks to build greater awareness among young people about the formal credit ecosystem and ensure that public sector lenders keep pace with the expectations of the youth.
PSBs must build relationships from campus to career
Sitharaman said each of the 12 public sector banks should devise its own strategy to attract and engage young customers, taking into account its product offerings, regional presence and institutional strengths.
The broader objective, she said, should be to establish a long-term relationship with young customers rather than limiting engagement to opening a bank account.
"Public Sector Banks must be the first and most trusted choice of young Indians, whether they are opening their first account, receiving their first salary, pursuing higher education, starting an enterprise or making their first investment. You should be a part of their lives," she said.
The minister said banks could also use learning and skill development to deepen their engagement with young customers. She suggested that lenders offer free online learning content in collaboration with reputed educational platforms and institutions.
Banks could supplement such offerings with lifestyle-linked benefits, including coupons and vouchers for fitness centres, yoga centres and credible mental wellness platforms, she said.
Sitharaman also suggested dedicated youth-focused spaces at physical branches, such as 'Yuva Kiosks' or Yuva Banking Mitra, where a designated employee could help young customers navigate their financial journey.
"Equal emphasis should 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 easily access finance for their future entrepreneurial journey," Sitharaman said.
She also nudged banks to educate young customers about maintaining good credit scores and credit histories as part of responsible borrowing and credit discipline.
Simpler, round-the-clock banking for young customers
The finance minister said young Indians increasingly expect banking services to be simple, intuitive, personalised and available around the clock, and asked PSBs to keep pace with these expectations.
She said the 'Banking for Youth' campaign should therefore go beyond conventional branch-based outreach and focus on meeting young customers where they are, including educational and skill-building institutions.
Sitharaman also suggested that the Indian Banks Association (IBA) could explore setting up a dedicated portal for banking awareness among youth.
The proposed portal could serve as a single point of access for young people to understand banking services and financial opportunities suited to their needs, while helping them connect with appropriate banking services.
Sitharaman also called for a robust approach to priority sector lending by public sector banks, adding to her broader push for lenders to strengthen their outreach and relevance among younger customers.
