Finance Minister Nirmala Sitharaman has announced that public sector banks will launch a month-long 'Banking for Youth' campaign commencing October 2, 2026, targeting young citizens above 16 years of age. Speaking at the closing session of the two-day PSB Conclave on August 18, Sitharaman emphasized that banks should not be perceived as 'not cool' so that younger generations can approach them. The campaign will focus on outreach to young people rather than waiting for them to come to branches, with colleges, universities, skill-building institutions and campuses serving as important touchpoints for account-opening initiatives and financial awareness programs. As per The Economic Times, Sitharaman said "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?" The campaign will be coordinated by the DFS and Indian Banks' Association (IBA).
The campaign will include the establishment of dedicated youth banking spaces such as 'Yuva Kiosks' or Yuva Banking Mitra at physical bank branches, where dedicated employees can help young customers navigate their financial journey. According to Sitharaman's latest announcement, equal emphasis should be given to building awareness of the formal credit ecosystem, including credit scores, various bank credit products, and government credit schemes. Banks are also encouraged to provide lifestyle-linked benefits including coupons/vouchers for fitness centres, yoga centres and credible mental wellness platforms to attract young customers. The Indian Banks Association (IBA) is being urged to explore launching a web- and mobile-friendly portal providing young people with information on KYC, banking, credit, entrepreneurship, education and skilling, which could also direct users to nearby PSB branches to open basic savings bank deposit accounts. The portal can serve as a single point where young people can understand banking services and financial opportunities suited to their needs. As per The Economic Times, Sitharaman called for free online learning content in collaboration with reputed educational platforms and suggested the portal could gamify the awareness campaign through interactive features such as quizzes, graphics and certificates.
Recent data reveals that credit penetration among 18-25-year-olds rose sharply — one in seven young adults had access to credit in 2024, up from about one in eleven three years earlier. Younger consumers increasingly use credit for consumption-led purchases, with consumer durables, credit cards, and two-wheeler loans being the preferred categories. However, Gen Z's default rate remains the highest of any age group: 30-plus-day delinquency among these borrowers stood at 2.9 per cent in 2024 and 2.7 per cent in 2025, raising questions about whether the upcoming initiative can help borrowers keep pace with repayment. This trend highlights the urgent need for targeted financial education and support systems to address repayment capacity challenges among young borrowers.
Recognizing the high penetration of technology among GenZ, Sitharaman noted that young people expect banking to be simple, intuitive, personalised and available around the clock. Speaking at the PSB Conclave, she emphasized that "A banking relationship established between ages 16 and 18 can deepen over decades as a young person moves through education, employment, entrepreneurship, home ownership, investment and wealth creation." The Finance Minister urged PSBs to adopt a "lifecycle" approach and aim to become the preferred financial partner across different life stages of an individual -- from campus to career and beyond. As per The Economic Times, Sitharaman said "Public Sector Banks must be the first and most trusted choice of young Indians," adding that banks should be part of customers' journeys from their first account and salary to higher education, entrepreneurship and their first investment. The larger objective should be to build a long-term banking relationship from 'campus to career and beyond' rather than a one-time account-opening engagement.
Addressing agricultural finance priorities, Sitharaman emphasized the need for banks to translate Prime Minister's vision of 'Sapt Dhara' into appropriately designed and targeted agricultural financing. She called for substantial expansion of credit to farmers growing pulses and oilseeds, which will reduce India's dependence on imports and help improve soil health and bring Atmanirbharta. This effort should be closely aligned with the Prime Minister Dhan-Dhaanya Krishi Yojana, particularly in the districts covered under the scheme. The government has set ambitious targets for youth participation across key sectors, aiming to transform young people currently engaged as casual labourers into entrepreneurs and job creators. Sitharaman suggested that banks should improve the availability of both short-term and long-term credit in these districts to raise productivity, promote crop diversification and sustainable agriculture, and expand irrigation, post-harvest storage and allied infrastructure. She also told banks to incorporate climate resilience in agricultural lending by developing credit products that encourage high-yielding and climate-resilient varieties, chemical-free farming practices, water conservation and micro-irrigation.
