New Delhi, Aug. 31 -- Finance minister Nirmala Sitharaman recently urged public sector banks (PSBs) to bring more young people into the formal banking system. A month-long "Banking for Youth" campaign is expected to be launched in October. The aim is to go beyond opening accounts and build lifelong banking relationships with young people.

The minister's message makes sound business sense. India has around 400 million Gen Z individuals (born 1997 to 2012), who are currently between 14 and 29 years of age. They make up about 27% of the population. But as the country starts ageing, the number of persons in this age group is expected to fall. Estimates by the UN indicate that by 2050, the size of the 14-29-year age group will drop to 346 mil...