Sitharaman Orders Public Sector Banks to Launch Youth Campaign

Finance Minister Nirmala Sitharaman directed India's public sector banks (PSBs) and public financial institutions to launch a month-long Banking for Youth campaign starting October 2, 2026. Speaking at the PSB Confluence 2026 in New Delhi, Sitharaman urged state-owned lenders to modernize their image to compete with private banks, noting that PSBs are often perceived as less cool. The initiative targets citizens aged 16 and above to build long-term relationships from campus to career.

To attract Gen Z customers, Sitharaman suggested implementing lifestyle-linked vouchers for mental wellness and fitness, offering free online learning content, and establishing physical Yuva Kiosks. She also called on the Indian Banks' Association to develop a dedicated online portal for banking awareness. Beyond branding, the minister emphasized the need to educate young Indians on credit scores and government schemes to support future entrepreneurship.

PSBs unveiled a broader strategy during the confluence to address the fact that 65% of India's population is under 35. The roadmap includes a Catch Them Young approach using digital-first onboarding via e-KYC and video KYC, as well as utilizing UPI and GST data for customer profiling. The banks aim to increase youth participation in agriculture from 6% to 10% and will partner with the My Bharat initiative to implement these goals. Additionally, Sitharaman demanded a more productive approach to Priority Sector Lending for farmers and MSMEs, moving beyond simple numerical targets.