PSBs Plan Month-Long Banking Drive for Youth From October 2

The Indian Banks' Association will coordinate the youth initiative, which is expected to combine digital services with outreach at colleges, universities and skill institutions.

India's public sector banks are set to launch a month-long campaign from October 2, 2026, to build stronger financial relationships with young people aged above 16, one of the key proposals emerging from the two-day PSB Confluence 2026 organised by the Department of Financial Services.

Finance and Corporate Affairs Minister Nirmala Sitharaman called for the campaign during the concluding session of the event, asking Public Sector Banks and Public Financial Institutions to turn two days of discussions into practical measures that respond to India's changing economic and financial needs.

The Indian Banks' Association will coordinate the youth initiative, which is expected to combine digital services with outreach at colleges, universities and skill institutions. Banks will seek to establish relationships with customers as they begin entering the formal financial system and continue supporting them as their needs shift from education and employment to entrepreneurship, investment and wealth creation.

Common digital platform proposed for young customers

A common online portal or application has been proposed as part of the youth banking campaign, giving young people a single place to find straightforward information about banking products and opportunities linked to education, skills and entrepreneurship.

Physical outreach will remain part of the programme, with banks expected to engage young customers through educational campuses, skill institutions and other spaces where they can reach this age group directly.

The approach recognises that a first bank account can become the beginning of a much wider financial relationship. A student may initially need basic banking and education-related services before later requiring salary accounts, credit, business financing or investment products.

Sitharaman asked banks to use their existing institutional strengths while developing capabilities that can respond to such changing customer requirements rather than treating financial inclusion as a one-time exercise.

Priority sector lending faces closer monitoring

Priority Sector Lending was another major focus of the Confluence, with the Finance Minister asking PSBs to pay closer attention to shortfalls against individual targets and sub-targets.

Banks were encouraged to monitor lending at a more detailed level and identify potential gaps early enough to address them through appropriate business strategies. The emphasis remains on genuine credit flowing to intended beneficiaries rather than simply meeting targets through year-end adjustments.

Priority sector lending directs bank credit towards areas considered important for broader economic and social development, making the quality and reach of that lending as important as headline numbers.

Practical experience also formed part of the discussion, with Toy Zone Director Sanjay Mehndiratta sharing insights related to priority sector lending from his entrepreneurial journey.

Agriculture financing expands beyond the farm

Day two examined ways banks can strengthen financing across the agriculture and horticulture value chains, moving attention beyond crop production towards the infrastructure required to store, process, transport and sell agricultural products.

Participants identified opportunities involving Farmer Producer Organisations, storage facilities, processing businesses, logistics networks and stronger market linkages. Better access to finance across these areas could help farmers reduce losses, reach more buyers and capture a greater share of the value generated after produce leaves the farm.

VNR Group Director CA Arvind Agarwal contributed practical perspectives on agriculture and horticulture value-chain infrastructure, giving participants a business-level view of financing requirements and operational challenges.

The discussions formed part of seven themes examined during PSB Confluence 2026, with thematic groups presenting actionable strategies during debriefing sessions at the end of the event.

Banks explore RuPay-UPI opportunity for credit cards

The credit card business also came under review as banks considered how digital onboarding and their existing customer relationships could support future growth.

RuPay-UPI integration was identified as an opportunity for expanding card usage, while greater cross-selling to existing customers could allow PSBs to compete more actively in a segment shaped increasingly by digital payments and changing consumer behaviour.

The Department of Financial Services now expects participating institutions to move from discussion towards implementation, assigning clear ownership and realistic timelines to the proposals. Successful models developed by individual institutions could also be examined for adoption across a wider group of banks and financial institutions.

For PSBs, the priorities emerging from the Confluence stretch from teenage customers opening their first accounts to farmers seeking value-chain finance and consumers using new digital payment options. The common challenge will be turning those opportunities into services and credit that can support financial inclusion while keeping pace with India's broader economic growth.