Finance Minister Nirmala Sitharaman urged PSBs to become 'cool' and shed their 'government bank' image to attract young customers.
Public-sector banks (PSBs) are preparing to use the ministry of youth affairs and sports' 'Mera Yuva Bharat' (MY Bharat) portal to offer internships and training to young people and build a pipeline for entry-level recruitment, days after Finance Minister Nirmala Sitharaman asked them to become more youth-friendly to attract the next generation of customers.
Key Points
- The 'Banking for Youth' initiative, starting October 2, aims to acquire young customers and expand financial literacy and digital banking programmes.
- Trained candidates from MY Bharat internships under the Prime Minister Internship Scheme could be considered for entry-level positions at PSBs.
- PSBs are encouraged to build long-term relationships with young customers across their financial life cycle, from education to wealth creation.
Under the month-long 'Banking for Youth' initiative from October 2, PSBs plan to accelerate acquisition of young customers and expand outreach through financial literacy and digital banking programmes, while also offering internship opportunities and entry-level jobs to youth.
The banks plan to train young people registered on the MY Bharat portal through internships under the Prime Minister Internship Scheme. The trained candidates could subsequently be considered for entry-level positions at PSBs, a government official said.
Banks have proposed the number of youth trained through MY Bharat internships and the share of trained youth subsequently onboarded as staff as measurable parameters for the initiative.
Besides hiring, acquiring young customers and building relationships with them remain key components of the initiative.
Banks also plan to use the same portal for financial literacy and digital banking awareness programmes for students and young professionals.
This would include modules on financial literacy and digital banking, aimed at addressing barriers such as concerns over the safe use of digital financial services.
'Banking for Youth'
The MY Bharat portal, launched by the ministry of youth affairs and sports in 2023, is a digital platform for youth aged 15 to 29. It acts as a single-window hub connecting users with volunteering opportunities, experiential learning programmes, skill-development workshops and professional mentorship.
Bankers held discussions on the strategy with finance ministry officials last week at the PSB Confluence organised by the department of financial services.
'Banking for Youth' was one of the seven themes discussed at the two-day event. At the closing session of the confluence, Sitharaman asked PSBs to shed their 'government bank' image and become 'cool' to attract young customers and build long-term relationships with them.
She asked PSBs to take the campaign to colleges, universities and skill-development institutions through account-opening initiatives.
She also suggested dedicated 'Yuva Kiosks' or 'Yuva Banking Mitra' at branches to help young customers navigate banking and credit products.
Sitharaman said lenders should build relationships with customers across their financial life cycle, from education and employment to entrepreneurship, home ownership, investment and wealth creation.
International agencies, including Fitch, have flagged rising youth unemployment concerns in India and called for steps to address the issue, which could also have future fiscal implications for the government.
Feature presentation: Mahipal Soni/Rediff
