Finance Minister Nirmala Sitharaman has urged public sector banks to launch a month-long “Banking for Youth” campaign to engage young Indians [1].
The initiative seeks to bring younger citizens into the formal banking system early, aligning with the government's broader "Viksit Bharat" development goals [1], [3].
Speaking at the PSB Confluence 2026, Sitharaman said public sector banks need to strengthen their engagement with individuals aged 16 years and older [2], [3]. The campaign is scheduled to begin on Oct. 2, 2026, and will run for one month [1], [2].
To attract Gen Z customers, the finance minister suggested that banks move beyond traditional services. She said banks should incorporate lifestyle perks and educational courses to make banking more appealing to a younger demographic [2].
The push comes as the government looks to leverage India's youthful population. Approximately 29 percent of the Indian population falls within the 15-29 age bracket [3]. By integrating this group into formal financial structures, the government aims to foster long-term financial stability, and participation in the national economy [1], [3].
Public sector banks have historically struggled to compete with agile private fintech firms that offer seamless digital experiences. The "Banking for Youth" campaign represents a strategic attempt to modernize the image of state-run institutions and ensure they remain relevant to the next generation of earners [2].
“Public sector banks need to be more cool for Gen Z.”
This initiative signals a shift in India's state-led banking strategy to combat the rise of private fintech competitors. By targeting the 16-and-older demographic, the government is attempting to secure early brand loyalty for public sector banks, ensuring that a significant portion of the youth population remains tied to state-regulated financial infrastructure as part of the Viksit Bharat economic vision.
