Sitharaman pushes public sector banks to win Gen Z with courses and lifestyle perks

Finance Minister Nirmala Sitharaman has urged public sector banks to launch a Banking for Youth campaign from October 2, using campus outreach, free courses, vouchers, youth kiosks and clearer communication on credit products and government schemes.

— Source published Wed, 19 Aug, 2026, 09:53 IST · First seen Wed, 19 Aug, 2026, 10:21 IST · Source ET Small Business

What happened

Public Sector Banks · Finance Minister Nirmala Sitharaman urged public sector banks to attract Gen Z through a Banking for Youth campaign, campus outreach, free

Key facts

  • month-long campaign
  • October 2
  • aged 16 and above
  • two-day PSB Confluence

Why this matters

Banks, fintechs, edtech platforms and youth-focused consumer brands have a partnership opening to bundle financial courses, campus distribution, vouchers and tailored credit products for Gen Z customers.

What to watch

  • Named participating public-sector banks, campaign budgets and launch execution around October 2.
  • Merchant, edtech, university, payment-app and loyalty-program partnership announcements.
  • Metrics on youth account openings, active UPI users, debit-card spend, recurring deposits and first-credit conversions rather than gross sign-ups.
  • RBI or government guidance on digital onboarding, youth credit marketing, data consent and financial-literacy standards.
  • Private-bank and fintech counteroffers targeting students and first-jobbers.
  • Public-sector banks will seek national and regional merchant partners for student vouchers, cashback and campus events.
  • Expect simplified youth savings accounts, first-credit products, credit-score education and government-scheme explainers packaged into mobile onboarding journeys.
  • Banks may prioritize colleges with high graduate-employment potential, using campus data and alumni networks to identify future salary-account and lending customers.
  • Retailers with strong Gen Z reach may gain new bank-funded promotional inventory, especially in food delivery, fashion, travel, mobility, entertainment and edtech.
  • Campaign performance will push banks toward lifecycle cross-selling: student accounts to salary accounts, secured cards, education loans, personal loans, insurance and investments.