Finance Minister Nirmala Sitharaman appealed to Public Sector Banks (PSBs) to change their approach to attract young people, especially Generation Z. The Minister emphasized that banking services must be convenient, personalized, and available 24/7, and the banks themselves must look 'cool'.
Speaking at the closing session of the two-day event 'PSB Confluence 2026', Sitharaman stated that after interacting with some young people, she found that most prefer private banks. She noted that youth perceive private banks as having a more modern and 'cool' image compared to public institutions, which in the eyes of most young people are still associated with 'government banks'.
The Minister strongly recommended that public banks initiate a direct dialogue with the youth to understand exactly what changes and preferences they have regarding banking services. She also warned that the pursuit of being 'cool' should not compromise security or adherence to banking regulations.
Public banks were instructed to launch the 'Banking for Youth' campaign, which will last for one month starting October 2nd. The main focus of this initiative is on youth aged 16 and older. The goal of the campaign is not just to open bank accounts but also to engage youth in their financial journey throughout their life cycle—from studying and job searching to running businesses and investing.
Sitharaman advised banks not to wait for the youth to come to them, but rather to proactively reach out to them in colleges, universities, and skills development centers. In these locations, banks can open new accounts, conduct financial literacy programs, hold direct conversations with young people, and provide information about banking services and investments.
Furthermore, the Minister suggested collaborating with educational platforms and institutions to offer free online courses. This would help youth develop skills, while allowing banks to establish long-term customer relationships. Sitharaman also mentioned the possibility of providing youth with vouchers for fitness, yoga, and mental well-being.