New Delhi, Aug 18 (PTI) Emphasising the role of youth in building a 'Viksit Bharat', Finance Minister Nirmala Sitharaman on Tuesday exhorted public sector banks to focus on Gen Z and provide simple, personalised and round-the-clock banking to meet their expectations.

Addressing the concluding session of the two-day PSB Confluence here, Sitharaman asked state-owned banks to launch a month-long 'Banking for Youth' campaign beginning October 2, focusing on youths aged 16 years and above, and strive to build a long-term banking relationship from 'campus to career and beyond', rather than a one-time account-opening engagement.

Observing that public sector banks still carry the image of being "government banks" and are perceived as less attractive by young customers compared with private lenders, Sitharaman urged PSBs to engage with young people to understand their expectations and make banking more appealing to them, while maintaining prudential standards and the seriousness associated with banking.

Asking PSBs to maintain a balance between cool and serious prudential banking, Sitharaman said: "We should keep pace with expectations of youth." Recalling her recent conversation with young people who said private sector banks are a preferred choice for account opening as they are "cool", Sitharaman asked PSBs to talk to young people and find out what needs to be done to change the impression of their banking services in line with youth expectations.

"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. You should, please get some young people to talk to you. What makes you appear cool? Or at least one portion of your banks should, when they sit in front of the customers, make sure everything is cool," Sitharaman said.

The minister said banks should take the campaign directly to youth rather than wait for them to come to branches. Colleges, universities, skill-building institutions and other campuses can become important touchpoints for the campaign through account-opening initiatives, financial awareness and direct interaction, she added.

"Public Sector Banks must be the first and most trusted choice of young Indians, whether they are opening their first account, receiving their first salary, pursuing higher education, starting an enterprise or making their first investment. You should be a part of their lives," she said.

The minister said banks could offer free online learning content in collaboration with reputed educational platforms and institutions, using learning and skill development as an avenue to engage youth and bring them into the formal banking fold.

She suggested that banks should complement their propositions with lifestyle-linked benefits, including coupons/vouchers for fitness centres, yoga centres and credible mental wellness platforms.

Sitharaman suggested setting up dedicated youth banking spaces such as 'Yuva Kiosks' or Yuva Banking Mitra at physical bank branches, where a dedicated employee could help the youth navigate their financial journey.

"Equal emphasis should be given to building awareness of the formal credit ecosystem, including credit scores, various bank credit products, and government credit schemes. This will enable youth to easily access finance for their future entrepreneurial journey," Sitharaman said.

Also, she nudged banks to sensitise youth about the importance of maintaining good credit scores and history for responsible credit discipline.

Sitharaman also suggested that the Indian Banks Association (IBA) could explore launching a portal dedicated to banking awareness for youth.

The portal could act as a single point where young people can understand banking services and financial opportunities suited to their needs and connect with the appropriate banking services.

Sitharaman said India has one of the world's youngest populations and young people will increasingly shape the country's patterns of consumption, savings, investment, entrepreneurship and wealth creation.

Financial capability should develop seamlessly alongside adulthood, not as a reactive, stressful adjustment upon starting one's first professional engagement, she added. PTI DP JD HVA