Make banking cool: Sitharaman wants state-run banks to crack the Gen Z code

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{display:none}table .inline_ad2 {display: none;}.trinity__container{display: none;} .autiostory a{display: none !important}.description table{max-width:100%;border: 0;margin-bottom: var(--widgetgap);} table tr td #teads-ad{display:none}table tr td .ads__container{display:none}ul>li div#shoppingWidgetLSH{display:none}ul>li div#shoppingWidget_mobile{display:none}.Story_story__content__body__qCd5E .Story_description__fq_4S>ul>li:has(.inline-story-add) div { display: none; }.pagetype__story ul li #checktheseout2{display: none}.newspress_rhs_widget .mframe { background: url(https://akm-img-a-in.tosshub.com/sites/misc/img/iphone-frame.png); }.ads_container .top_ad>* * { text-align: center; margin: 0 auto; }.ite_mg_banner:nth-of-type(2) { display: none; } .pagenode__2672529 .inline_ad2{display:none}Nirmala Sitharaman urged public sector banks to become more attractive to young customers.India Today News DeskNew Delhi,UPDATED: Aug 19, 2026 10:13 ISTEdited By: Akshat Trivedi .ai_assist_bar2 { top:30px } Finance Minister Nirmala Sitharaman has urged public sector banks (PSBs) to shed their "government bank" image and become "cool" enough to appeal to Gen Z and young Indians. Addressing the concluding session of the two-day PSB Confluence 2026 on Tuesday, Sitharaman called on PSBs to focus on customers aged 16 years and above and provide simple, personalised and round-the-clock banking services.advertisement❮❯ Read Full StoryFROM CAMPUSES TO FITNESS PERKS: BANKS TOLD TO WOO YOUTHSitharaman suggested that banks offer free online learning content in collaboration with reputed educational platforms and institutions. She said learning and skill development could help banks engage with youth and bring them into the formal banking system. The Finance Minister also suggested lifestyle-linked benefits such as coupons and vouchers for fitness centres, yoga centres and credible mental wellness platforms. She proposed dedicated youth banking spaces at physical branches, including 'Yuva Kiosks' or 'Yuva Banking Mitra'. A dedicated employee at these facilities could help young customers navigate their financial journey and understand banking services.PRIVATE BANKS ARE COOL: SITHARAMAN FLAGS PERCEPTION GAP The Finance Minister highlighted the perception gap between public and private sector banks among young customers. She said PSBs still carry the image of being "government banks" and are often viewed as less attractive than private lenders. Recalling a recent conversation with young people, Sitharaman said they preferred private sector banks for opening accounts because they considered them "cool". She asked PSBs to engage with young people directly to understand what would make their services more appealing. "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," Sitharaman said. She urged banks to speak to young people and understand what makes a banking service appear "cool".BE COOL, BUT DON'T COMPROMISE ON PRUDENTIAL BANKING' At the same time, Sitharaman asked PSBs to maintain the prudential standards and seriousness associated with banking. "We should keep pace with expectations of youth," she said, calling for a balance between being "cool" and maintaining responsible banking practices. She said PSBs should aim to become the first and most trusted choice for young Indians across different stages of their financial lives, including opening their first account, receiving their first salary, pursuing higher education, starting an enterprise or making their first investment.EDUCATE YOUNG PEOPLE ON CREDIT SCORES, LOANS Sitharaman stressed the need to increase awareness about the formal credit ecosystem. She asked banks to educate young people about credit scores, different bank credit products and government credit schemes to help them access finance for future entrepreneurial ventures. She also urged banks to sensitise youth about the importance of maintaining good credit scores and credit histories as part of responsible credit discipline.'BANKING FOR YOUTH' CAMPAIGN FROM OCTOBER 2 Sitharaman asked public sector banks to consider launching a focused, month-long 'Banking for Youth' campaign from October 2, 2026, coinciding with Gandhi Jayanti. She said the campaign could be coordinated through the Department of Financial Services (DFS) and the Indian Banks' Association (IBA). She said the campaign should target young people at the beginning of their financial journey and help establish a long-term relationship with them, rather than limiting engagement to one-time account opening. Sitharaman urged banks to build relationships with young customers from "campus to career and beyond". Instead of waiting for youth to visit branches, she asked PSBs to take the campaign directly to colleges, universities, skill-building institutions and other campuses through account-opening initiatives, financial awareness programmes and direct interaction.- EndsWith agency inputs.Published By: Akshat TrivediPublished On: Aug 19, 2026 10:13 IST Also WatchPakistan's Iran-US peace bid fails; Dhaka sets terms for Tarique Rahman's India visitVideo: Annamalai opens up on quitting BJP at India Today Tamil Nadu RoundtableEvery citizen has a stake in the nation: Aadhav Arjuna echoes Singapore PMAdvertisement.ad_300_100 .adtext{display:none;}Read ThisMake banking cool: Sitharaman wants state-run banks to crack the Gen Z codeNew cars, Rs 75,000 monthly allowance: CM Vijay's big splurge for Tamil Nadu MLAsAnupama Parameswaran says ex made her feel ashamed of periods, being a womanTRENDING TOPICSCNG Price In MumbaiCNG Price In DelhiDiesel Price In MumbaiDiesel Price In DelhiPetrol Price In MumbaiPetrol Price In DelhiAdvertisement window.addEventListener("message", function (event) { if (event.data?.type === "sharelink" && event.data.shareurl) { console.log("Received sharing links and details", event.data.shareurl); 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