FM Sitharaman Urges PSBs To Be ‘Cool’, Make Banking Simpler And More Youth-Friendly

New Delhi, Aug 19 (KNN) Finance Minister Nirmala Sitharaman has urged public sector banks (PSBs) to make their services simpler, more personalised and accessible around the clock to attract young customers and build long-term banking relationships.

Addressing the concluding session of the two-day PSB Confluence 2026 in New Delhi, Sitharaman asked state-owned banks to launch a month-long ‘Banking for Youth’ campaign from October 2, targeting customers aged 16 years and above.

She said the focus should be on building relationships with young customers from ‘campus to career and beyond’, rather than treating account opening as a one-time interaction.

PSBs Need to Change Youth Perception

Sitharaman said PSBs continue to carry a “government bank” image and are often seen as less attractive by young customers than private sector lenders.

Recalling conversations with young people who described private banks as “cool”, she asked PSBs to engage directly with youth to understand their expectations and improve the customer experience while maintaining prudent banking standards.

“We should keep pace with expectations of youth,” she noted, calling for a balance between being youth-friendly and maintaining the seriousness associated with banking.

The Finance Minister said, “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,” as quoted by PTI.

Take Banking to Campuses

Sitharaman asked PSBs to take the campaign directly to colleges, universities, skill-building institutions and other campuses instead of waiting for young customers to visit branches.

She suggested account-opening drives, financial awareness programmes and direct interactions with students and young professionals. Banks could also provide free online learning and skill-development content in partnership with educational institutions and platforms.

Sitharaman proposed dedicated youth-focused facilities such as ‘Yuva Kiosks’ or ‘Yuva Banking Mitra’ at bank branches, where trained employees could guide young customers through banking and financial services.

She also suggested lifestyle-linked benefits, including discounts or vouchers for fitness centres, yoga facilities and credible mental wellness platforms.

Focus on Financial and Credit Awareness

Sitharaman stressed the need to educate young people about the formal credit system, including credit scores, loan products and government-backed credit schemes.

She said greater awareness would help young people, particularly aspiring entrepreneurs, access finance while encouraging responsible borrowing and good credit histories.

She also suggested that the Indian Banks’ Association (IBA) explore a dedicated portal or application providing young people with simple information on banking services and financial opportunities related to education, skill development and entrepreneurship.

"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," Sitharaman said.

She emphasised that India’s young population would increasingly influence consumption, savings, investment, entrepreneurship and wealth creation. She stressed that financial capability should develop alongside adulthood rather than only when young people enter the workforce.

(KNN Bureau)