Nirmala Sitharaman's Gen Z outreach: Public sector banks need to be more ‘cool’

Public sector banks need to become more youth-friendly and “cool” to win over Gen Z, finance minister Nirmala Sitharaman said on Tuesday.

Speaking at the two-day PSB Confluence 2026, Sitharaman said young people she spoke to preferred private banks because they were “cool”. She asked public sector banks (PSBs) to understand why and find better ways to connect with young customers.

“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?” Sitharaman said. “We should keep pace with expectations of youth,” she said.

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‘Banking for Youth’ campaign from October 2

Sitharaman asked PSBs to launch a month-long ‘Banking for Youth’ campaign from October 2, for people aged 16 and above. The campaign will be coordinated through the Indian Banks’ Association (IBA).

The campaign aims to build a long-term connection with young customers as they move from education to jobs, business, investments and savings, instead of just opening a bank account for them.

Sitharaman suggested taking the campaign to colleges, universities, skill centres and other campuses. These places could be used to open accounts, spread financial awareness and interact with young customers.

She also suggested that banks offer free online courses with reputed education platforms and institutions. They could also provide benefits such as coupons and vouchers for fitness, yoga and mental wellness services.

Sitharaman suggested setting up dedicated spaces such as ‘Yuva Kiosks’ or ‘Yuva Banking Mitra’, where staff could help young customers with their banking needs.

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‘Must be youth’s first choice'

Sitharaman also asked banks to help young people better understand credit scores, loans and government schemes, especially those planning to start their own businesses.

“Public Sector Banks must be the first and most trusted choice of young Indians,” she said.

She also suggested that the Indian Banks’ Association (IBA) create a dedicated website or app for young people, with simple information on banking, education, skill development and starting a business.

PSB Confluence 2026

The two-day PSB Confluence 2026 brought together public sector bank and financial institution leaders, government officials and experts to discuss the future of banking.

The event focused on seven key areas. The second day covered agriculture and horticulture, priority sector lending (PSL) and ways to improve the credit card business.

Sitharaman said the discussions should lead to real action. She asked banks to prepare for new opportunities and meet India's changing financial needs.

On PSL, she asked banks to closely monitor their targets, identify gaps early and ensure loans reach the people and sectors that need them.

The discussions also looked at loans for farmer groups, storage, food processing, transport and market access. On credit cards, banks discussed easier digital account opening, offering more products to existing customers and using the RuPay-UPI link.