‘Please get some young people to...’: Nirmala Sitharaman asks PSBs to make banking ‘cool’ for Gen Z
She asked PSBs to understand what drives that perception and find ways to make their services more youth-friendly.
- Aug 19, 2026,
- Updated Aug 19, 2026 4:46 PM IST
Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to rethink how they engage with young customers, calling for simpler, more personalised and round-the-clock banking services as India’s youth increasingly shape consumption, savings and investment trends.
Speaking at the concluding session of the two-day PSB Confluence on Tuesday, Sitharaman asked state-owned banks to launch a month-long ‘Banking for Youth’ campaign from October 2, targeting young people aged 16 years and above. She said the focus should be on building a long-term relationship with customers “from campus to career and beyond”, rather than limiting engagement to opening a bank account.
PSBs need to shed ‘government bank’ image
Sitharaman said PSBs continue to carry the image of being “government banks” and are often seen as less attractive to young customers than private lenders. She urged banks to speak directly to young people and understand what would make their services more appealing, while retaining the prudential standards and seriousness expected from banks.
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“Asking PSBs to maintain a balance between cool and serious prudential banking, Sitharaman said: "We should keep pace with expectations of youth."
The minister said she had recently spoken to young people who told her that private sector banks were often their preferred choice because they were seen as “cool”. She asked PSBs to understand what drives that perception and find ways to make their services more youth-friendly.
"Somewhere, private banks seem to have that picture of being banks, but good enough as well... I need public sector banks not to be not cool. You should, please get some young people to talk to you. What makes you appear cool? Or at least one portion of your banks should, when they sit in front of the customers, make sure everything is cool," Sitharaman said.
Take banking to campuses
She said PSBs should take the campaign to young people instead of waiting for them to visit branches. Colleges, universities, skill-building institutions and other campuses could serve as key points for account-opening drives, financial awareness programmes and direct interaction with young customers.
"Public Sector Banks must be the first and most trusted choice of young Indians, whether they are opening their first account, receiving their first salary, pursuing higher education, starting an enterprise or making their first investment. You should be a part of their lives," she said.
Free learning content, lifestyle benefits
Sitharaman also suggested that banks offer free online learning content in partnership with reputed educational platforms and institutions. She said learning and skill development could help banks engage with young people while bringing more of them into the formal banking system.
Banks could also add lifestyle-linked benefits such as coupons and vouchers for fitness centres, yoga centres and credible mental wellness platforms, she said.
Must Read: Can Delhi’s canals become power plants? What Master Plan 2047 says on solar, hydro energy generation
‘Yuva Kiosks’ at bank branches
At branches, the minister proposed dedicated youth-focused spaces such as ‘Yuva Kiosks’ or ‘Yuva Banking Mitra’, where a designated employee could help young customers understand and manage different stages of their financial journey.
Focus on credit scores and financial awareness
Sitharaman also stressed the need to improve awareness of the formal credit system, including credit scores, bank credit products and government credit schemes. This, she said, could make it easier for young people to access finance when they eventually start businesses or pursue entrepreneurial ventures.
"Equal emphasis should be given to building awareness of the formal credit ecosystem, including credit scores, various bank credit products, and government credit schemes. This will enable youth to easily access finance for their future entrepreneurial journey," Sitharaman said.
She also asked banks to sensitise young customers about maintaining a good credit score and credit history as part of responsible borrowing.
IBA may explore youth banking portal
The minister suggested that the Indian Banks Association (IBA) could explore setting up a dedicated portal for banking awareness among young people. The portal could serve as a single platform where youth can learn about banking services and financial opportunities relevant to them and connect with the appropriate banking services.
‘Financial capability should develop seamlessly’
Sitharaman said India’s young population would increasingly influence the country’s consumption, savings, investment, entrepreneurship and wealth-creation patterns.
Financial capability, she added, should grow alongside young people as they enter adulthood rather than becoming a stressful adjustment when they start their first professional engagement.
(With inputs from PTI)
Finance Minister Nirmala Sitharaman has asked public sector banks (PSBs) to rethink how they engage with young customers, calling for simpler, more personalised and round-the-clock banking services as India’s youth increasingly shape consumption, savings and investment trends.
Speaking at the concluding session of the two-day PSB Confluence on Tuesday, Sitharaman asked state-owned banks to launch a month-long ‘Banking for Youth’ campaign from October 2, targeting young people aged 16 years and above. She said the focus should be on building a long-term relationship with customers “from campus to career and beyond”, rather than limiting engagement to opening a bank account.
PSBs need to shed ‘government bank’ image
Sitharaman said PSBs continue to carry the image of being “government banks” and are often seen as less attractive to young customers than private lenders. She urged banks to speak directly to young people and understand what would make their services more appealing, while retaining the prudential standards and seriousness expected from banks.
Don't Miss: Can Delhi’s canals become power plants? What Master Plan 2047 says on solar, hydro energy generation
“Asking PSBs to maintain a balance between cool and serious prudential banking, Sitharaman said: "We should keep pace with expectations of youth."
The minister said she had recently spoken to young people who told her that private sector banks were often their preferred choice because they were seen as “cool”. She asked PSBs to understand what drives that perception and find ways to make their services more youth-friendly.
"Somewhere, private banks seem to have that picture of being banks, but good enough as well... I need public sector banks not to be not cool. You should, please get some young people to talk to you. What makes you appear cool? Or at least one portion of your banks should, when they sit in front of the customers, make sure everything is cool," Sitharaman said.
Take banking to campuses
She said PSBs should take the campaign to young people instead of waiting for them to visit branches. Colleges, universities, skill-building institutions and other campuses could serve as key points for account-opening drives, financial awareness programmes and direct interaction with young customers.
"Public Sector Banks must be the first and most trusted choice of young Indians, whether they are opening their first account, receiving their first salary, pursuing higher education, starting an enterprise or making their first investment. You should be a part of their lives," she said.
Free learning content, lifestyle benefits
Sitharaman also suggested that banks offer free online learning content in partnership with reputed educational platforms and institutions. She said learning and skill development could help banks engage with young people while bringing more of them into the formal banking system.
Banks could also add lifestyle-linked benefits such as coupons and vouchers for fitness centres, yoga centres and credible mental wellness platforms, she said.
Must Read: Can Delhi’s canals become power plants? What Master Plan 2047 says on solar, hydro energy generation
‘Yuva Kiosks’ at bank branches
At branches, the minister proposed dedicated youth-focused spaces such as ‘Yuva Kiosks’ or ‘Yuva Banking Mitra’, where a designated employee could help young customers understand and manage different stages of their financial journey.
Focus on credit scores and financial awareness
Sitharaman also stressed the need to improve awareness of the formal credit system, including credit scores, bank credit products and government credit schemes. This, she said, could make it easier for young people to access finance when they eventually start businesses or pursue entrepreneurial ventures.
"Equal emphasis should be given to building awareness of the formal credit ecosystem, including credit scores, various bank credit products, and government credit schemes. This will enable youth to easily access finance for their future entrepreneurial journey," Sitharaman said.
She also asked banks to sensitise young customers about maintaining a good credit score and credit history as part of responsible borrowing.
IBA may explore youth banking portal
The minister suggested that the Indian Banks Association (IBA) could explore setting up a dedicated portal for banking awareness among young people. The portal could serve as a single platform where youth can learn about banking services and financial opportunities relevant to them and connect with the appropriate banking services.
‘Financial capability should develop seamlessly’
Sitharaman said India’s young population would increasingly influence the country’s consumption, savings, investment, entrepreneurship and wealth-creation patterns.
Financial capability, she added, should grow alongside young people as they enter adulthood rather than becoming a stressful adjustment when they start their first professional engagement.
(With inputs from PTI)