Banking For Gen Z: Youth Must Be Part Of India’s Viksit Bharat Push, Says FM Sitharaman

Banking for youth emerged as a key focus at a two-day meeting of public sector banks, with Union Finance Minister Nirmala Sitharaman highlighting the size of India’s young population and the need for banks to consider its financial needs.

Banking For Youth Emerges As Key Banking Theme

Addressing the PSB Confluence 2026, Sitharaman referred to a Department of Financial Services (DFS) document that looks into India's youth across different age groups and college experiences. “29 per cent of India’s population is between 15 and 29 years,” she said.

Banking for youth was one of seven themes taken up at the meeting. The other areas included deposit mobilisation, supporting the investment cycle, global capability centres, agriculture and horticulture value-chain infrastructure, priority sector lending and reimagining the credit card business.

The focus on youth comes as a growing number of young Indians enter formal financial services, either as students, first-time earners or new borrowers. Their requirements can range from basic banking and digital payments to savings, investments and credit.

Banks To Discuss Changing Needs Of Young Customers

The DFS had prepared a separate document on youth for the meeting, with participants asked to examine the material and contribute ideas based on their experience.

Sitharaman has stated that the seven areas being discussed were intended to generate consensus that could guide the banking sector. “These seven different topics are very critical for us to discuss and discuss among yourselves, generate some kind of a consensus so that that shall be the template on which all of us can take the banking sector forward, financial inclusion forward, credit forward, and so on,” mentioned Sitharaman.

For banks, the youth segment is not a single category. A college student, a person entering their first job, and a young borrower are at different stages of financial independence and can have different banking requirements.

The discussion therefore, goes beyond simply increasing the number of young customers. It also involves how banks design products, savings options and credit services for customers as their financial circumstances change

Youth Banking To Feed Into Banking Reform Exercise

The discussions are also taking place ahead of the proposed high-powered committee on banking for Viksit Bharat. Sitharaman said the material generated at the conclave would be available to the committee as it examines the future role of banks.

Sitharaman linked the exercise to the 2047 target, noting that the timeframe for reforms is limited. “We are in '26, so less than or short of 20 years is what we have before us,” she said.

The youth-focused discussions will therefore form part of the wider banking reform exercise as the government considers how banks should respond to the financial needs of a changing population.