‘Make Banking Cool’: Sitharaman Pushes PSBs To Woo Young Customers

Union Minister of Finance Nirmala Sitharaman has asked public sector banks (PSBs) to consider a month-long “Banking for Youth” campaign from October 2, 2026, targeting young citizens above 16 years of age. At the closing session of the two-day PSB Confluence, Sitharaman urged banks to reach out to young people at the beginning of their financial journey rather than wait for them to visit branches. 

The campaign has been proposed to be coordinated by the Department of Financial Services (DFS) and the Indian Banks’ Association (IBA).

Banks Asked To Reach Youth On Campuses

Colleges, universities, skill-building institutions and other campuses have been identified as key touchpoints for account opening, financial awareness, and direct interaction with banking officials.

Sitharaman has proposed dedicated youth-focused spaces at branches, including “Yuva Kiosks” or “Yuva Banking Mitra”. A designated employee has been proposed to help young customers understand banking services and navigate their early financial decisions.

For customers aged between 16 and 18 years of age, Sitharaman has suggested simple, no-frills savings accounts without banking charges.

Credit And Digital Banking Have Got Focus

Banks have been asked to build awareness among young customers about credit scores, bank credit products, and government credit schemes. Sitharaman has also stressed the importance of maintaining good credit histories and responsible credit behaviour.

She pointed to data presented at the confluence which showed that 66 per cent of Unified Payments Interface (UPI) transactions have been undertaken by people aged 18-29. Young customers have grown up with smartphones and digital services and expect banking to be simple, intuitive, personalised and available round the clock, she said.

IBA, along with PSBs and DFS, has also been asked to explore a Web- and mobile-friendly portal for creating banking awareness among young people. The portal has been envisaged to provide simple FAQs, safe banking guidance, know-your-customer (KYC) education, financial and entrepreneurship skills, and information on relevant banking services.

Sitharaman Flags ‘Not Cool’ Perception

Sitharaman has highlighted a perception gap among younger customers, noting that some young people have preferred private banks because PSBs have been viewed as “not cool”.

She has urged PSBs to understand what makes banking services appealing to young people while retaining the prudential standards required in banking.

The campaign has also been proposed to use quizzes, graphics and certificates to encourage participation. Points and tokens have been suggested as nudges towards positive financial behaviour, with restrictions on their use.

Youth Campaign Linked To Life-Cycle Banking

Sitharaman has stressed that the initiative should go beyond the proposed one-month campaign. PSBs have been asked to build relationships with young customers as they move through education, employment, entrepreneurship, home ownership and investment.

She has called for banking relationships to be built “from campus to career and beyond”, with products and services suited to different stages of a customer’s financial life.