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The government is set to constitute a high-powered committee to transform the country's banking sector into a fully modern, agile, and customer-friendly system. Union Finance Minister Nirmala Sitharaman shared this significant information on Monday during the inaugural day of the two-day 'PSB Conclave 2026' held in New Delhi. The primary objective of this initiative is to achieve the goal of a 'Viksit Bharat' (Developed India) by 2047, a vision in which banks—considered the backbone of the national economy—will play a pivotal role. The Finance Minister highlighted that Non-Performing Assets (NPAs) of banks are currently at a historic low. This indicates that the country's banks are financially robust and well-positioned to seamlessly implement the next phase of major reforms.

**Banks to Align with the Needs of the Youth**
Youth aged 15 to 29 constitute approximately 29 percent of the country's total population. Keeping this demographic in mind, the banking sector is preparing to align itself with the aspirations of the new generation. Deliberations on the first day of the conclave focused heavily on strategies to integrate more young people into the formal banking system. To achieve this, the government will leverage 'Mera Yuva Bharat' (MY Bharat), the Ministry of Youth Affairs' national platform, which already connects over 26 million young individuals. This vast network will now be utilized to raise awareness among the youth regarding education loans, internships, financing for self-employment, and career opportunities within the financial sector.

**Special Focus on Increasing Customer Deposits**
A significant component of banking reforms is directly linked to the savings of the common citizen. The conclave featured detailed discussions on strengthening the bond between banks and customers to encourage people to increase their bank deposits. Additionally, strategies were formulated to enhance the capacity of public sector banks, aiming to accelerate the country's investment cycle and capitalize on the rapidly expanding market for Global Capability Centers (GCCs). Sanjay Lohiya, Secretary of the Department of Financial Services (DFS), clarified that these discussions would not remain confined to paper; instead, concrete steps would be taken to implement them on the ground. By learning from each other's successful experiences, banks will impart new momentum to the country's economic growth.

**Complete Transformation of the Credit Card Business**
Decisions on several significant issues—which will directly impact the common man's finances—are also scheduled for the second day of this two-day event. The banking sector is planning to completely reimagine the credit card business. Additionally, measures to streamline the credit disbursement process for infrastructure development in agriculture and horticulture will be considered. A clear roadmap will also be formulated to ensure timely and seamless credit flow to priority sectors (Priority Sector Lending).

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