- Public sector banks will offer no-fee no-frills accounts to youth aged 16 and above
- A month-long "Banking for Youth" campaign will launch from October 2 to engage young Indians
- Finance Minister urged PSBs to make youth banking a continuous, not one-time, effort
In a move to bring more young Indians in the banking system, Finance Minister Nirmala Sitharaman said, public sectors banks (PSBs) will offer no-frills accounts to youth without any charges.
During PSB Confluence in New Delhi on Tuesday, August 18, she also announced a month-long “Banking for Youth” campaign set to be launched by PSBs from October 2, catering to those aged 16 and above as well as young professionals. The campaign aims to engage youth with banking services and bring PSBs into their financial journey.
Sitharaman emphasised PSBs should become a part of young Indians' financial journey and youth banking campaign should not remain a one-month exercise but should become a continued effort to engage youngsters in the system.
Banks should focus on building awareness among youth about formal credit ecosystem, PSBs must keep pace with expectations of youth, the Finance Minister noted.
The PSB Confluence, a two-day meeting was hosted by the Department of Financial Services (DFS) in New Delhi, bringing leaders from PSBs and public financial institutions to discuss next-generation banking reforms with the long-term vision of "Viksit Bharat 2047"
Additionally, Sitharaman highlighted banking should cater to tech-savvy customers. Banks should provide lifestyle-linked benefits and offer vouchers for fitness, yoga and mental wellness centres.
"Banks could also complement their banking proposition with lifestyle-linked benefits. We saw in the data that you presented that 66% of all UPI transactions are being undertaken by those in the 18-to-29 age group. That's a world waiting for you to access..." she said.
Sitharaman's remarks come as she signaled a major upcoming shift in India's financial sector, urging PSBs to prepare for a new wave of banking reforms designed to align with the vision of a "Viksit Bharat" or Developed India.
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