New Delhi, Aug 19: Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to rethink their approach towards young customers and build a more modern, personalised and youth-friendly banking experience.
Addressing the concluding session of the two-day PSB Confluence 2026 on Tuesday, Sitharaman said state-run banks need to move beyond their traditional image and become more attractive to younger Indians, particularly those aged 16 and above.
The Finance Minister highlighted the perception among some young customers that private banks are more modern and appealing than public sector lenders. She urged PSBs to speak directly with young people and understand what they expect from their banks.
Sitharaman suggested that banks could introduce youth-focused services and benefits, including free online learning and skill-development content through partnerships with reputed educational platforms and institutions. She also proposed lifestyle-related benefits such as discounts and vouchers for fitness centres, yoga facilities and credible mental wellness platforms.
She called for dedicated youth-focused spaces at bank branches, suggesting initiatives such as ‘Yuva Kiosks’ or ‘Yuva Banking Mitra’. Such facilities could have dedicated staff to guide young customers through account opening, banking products, credit and other financial needs.
The minister also stressed that PSBs should make their services simple, convenient and available around the clock, while continuing to maintain responsible banking standards.
Sitharaman said banks should aim to become a trusted financial partner for young Indians throughout their financial journey — from opening their first bank account and receiving their first salary to pursuing higher education, starting a business and making their first investment.
She also called for greater financial awareness among young people, particularly about credit scores, credit history, bank loans and government-backed credit schemes. Banks, she said, should help young customers understand the importance of maintaining a healthy credit record and using formal credit responsibly.
To strengthen outreach, Sitharaman asked PSBs to consider launching a month-long ‘Banking for Youth’ campaign from October 2, 2026, in coordination with the Department of Financial Services and the Indian Banks’ Association.
The campaign could take banking services and financial awareness programmes directly to colleges, universities, skill-development institutions and other campuses, rather than waiting for young people to approach bank branches.
Sitharaman said the objective should be to build long-term relationships with young customers and stay connected with them from “campus to career and beyond.”
While encouraging banks to become more responsive to changing customer expectations, the Finance Minister also cautioned them not to compromise on prudential banking practices.
The push comes as public sector banks seek to strengthen their connection with a younger generation that increasingly expects digital convenience, personalised services and banking products tailored to their lifestyle and financial goals.