PSU banks plan youth banking push before Diwali, with savings, loans

New Delhi: State-run banks plan to launch three products targeting youth ahead of Diwali, covering savings, investments, insurance and loans. The initiative follows finance minister Nirmala Sitharaman's directive to banks to strengthen engagement with young citizens entering the formal financial system.

Banks are also working on a shared portal with interactive features to engage youth and provide easy access to banking information.

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The features being considered for the new products include free demat accounts and counselling on financial planning, said people familiar with the development.

These products will be launched before Diwali, while the portal is expected to go live by the end of November, they said.

"Besides these three products, which will have similar offerings across all lenders, individually banks can top them up with more features," said a senior executive at a state-run bank.

Options like waiving charges and offering incentives to encourage youth to open accounts are also being considered, another bank executive said.

Banks have shared their branch and ATM location details to enable the creation of a branch locator facility on the portal, the executive said. "It will be an interactive set up, offering guidance on financial planning, entrepreneurship and positive financial behaviour."

At PSB Confluence, the two-day strategy and ideation conclave of state-run banks held in August, finance minister Nirmala Sitharaman asked the lenders to develop strategies to attract the youth, leveraging their products, regional presence and other strengths.

Banks were asked to sensitise youth about the importance of maintaining good credit scores and history for responsible credit discipline. The minister also pitched for a web- and mobile-friendly portal dedicated to banking awareness for youth. It was suggested that the portal have interactive features such as quizzes, graphics and certificates aimed at building interest among the youth.

Also Read: Finance Minister Nirmala Sitharaman urges PSBs to sharpen youth outreach, build ahead of demand

According to the latest Reserve Bank of India Financial Stability Report, prime-plus borrowers in the ₹5-10 lakh income segment drove the fastest increase in fresh bad loans or non-performing assets in nine quarters through the third quarter of 2025-26.

A month-long campaign targeting youth above 16 years is currently ongoing. Started on October 2 and coordinated by the Indian Banks' Association, it seeks to strengthen engagement with young citizens entering the formal financial system.