Finance Minister Nirmala Sitharaman has called on public sector banks (PSBs) to strengthen their engagement with young Indians by considering a dedicated, month-long ‘Banking for Youth’ campaign from October 2, 2026. Speaking at the PSB Confluence 2026, Sitharaman said state-owned lenders need to establish relationships with customers much earlier in their financial lives instead of waiting for them to approach bank branches. She suggested that the proposed campaign begin on Gandhi Jayanti and focus particularly on young citizens above the age of 16.

“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 Department of Financial Services (DFS) and the Indian Banks’ Association (IBA) could jointly coordinate the initiative.

Banks Asked To Reach Students Where They Are

Sitharaman said PSBs should take banking services and awareness programmes directly to young people rather than relying solely on traditional branch-based outreach. Colleges, universities, skill-development centres and other educational campuses could become important touchpoints for the campaign.

She also proposed the creation of dedicated “Yuva Kiosks” or “Yuva Banking Mitra” facilities at bank branches. These could guide young customers through basic banking products, financial services and other requirements as they begin managing their finances.

The Finance Minister also highlighted the challenge PSBs face in attracting younger customers. She noted that private lenders have developed an image of being “cool enough as well”, indicating that state-owned banks need to evolve their customer experience to match changing expectations.

“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.”

Proposed Digital Portal For Banking Awareness

Sitharaman further suggested that the IBA examine the possibility of creating a dedicated web- and mobile-friendly platform focused on banking awareness for young Indians.

Such a platform could offer easy-to-understand information on KYC requirements, safe banking practices, education and skill-development loans, entrepreneurship finance and other financial services. It could also assist users in finding their nearest public sector bank branch.

The proposed digital initiative would complement physical outreach and help young customers access financial information through channels they are already familiar with.

Focus To Continue Beyond Account Opening

Sitharaman made it clear that the proposed campaign should not be treated simply as an account-opening drive. The broader objective, she said, should be to create banking relationships that continue as young customers move through different stages of life.

“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.

She also cautioned against limiting the initiative to October alone.

“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.

Sitharaman Seeks Better Quality In Priority Sector Lending

The Finance Minister also used the PSB Confluence to push for improvements in priority sector lending. She asked state-owned banks to focus on the quality and effectiveness of credit extended 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 farm credit, Sitharaman called for a significant increase in lending to cultivators growing pulses and oilseeds. She particularly stressed that small and marginal farmers should remain at the centre of agricultural financing.

“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.

PSBs Urged To Leverage Their Strength

Sitharaman said public sector banks are now in a considerably stronger position and should use their large customer base, extensive branch presence and expanding digital capabilities to sharpen their competitive edge.

The proposed youth-focused campaign, along with improvements in digital banking and priority sector lending, reflects a broader push for PSBs to become more responsive to changing customer needs. For young Indians, the emphasis is expected to be on accessibility, convenience, financial awareness and continued engagement as they progress from education into employment and other major financial milestones.

(With Agency Inputs)

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