DFS Hosts PSB Confluence 2026: Day 1 Deliberations focus on Four themes- Deposit Mobilisation, Banking for Youth, Supporting the Investment Cycle and Global Capability Centres
Executive Summary
The Department of Financial Services (DFS) organized the two-day PSB Confluence 2026 to identify strategic priorities and practical solutions for the banking sector’s contribution to India’s growth. Day 1 focused on deposit mobilisation, youth banking, the investment cycle, and Global Capability Centres (GCCs). A key upcoming action item is the formal announcement of a High-powered Committee on Banking Reforms for Viksit Bharat, which will utilize the confluence’s findings as substantive inputs.
Key Points / Main Content
Core Themes and Deliberations
The confluence is structured around seven key themes, with four addressed on Day 1: Deposit Mobilisation, Banking for Youth, Supporting the Investment Cycle, and Global Capability Centres (GCCs).
Day 2 sessions will cover Agriculture and Horticulture Value Chain Infrastructure, Priority Sector Lending, and Reimagining the Credit Card Business.
Discussions aim to identify actionable strategies and innovative solutions to strengthen institutional capabilities and competitiveness across institutions.
Strategic Focus on Youth
Banking for Youth was highlighted as a critical area, noting that 29% of India’s population is between 15 and 29 years of age.
The government plans to leverage the "Mera Yuva Bharat" (MY Bharat) platform, which has over 2.60 crore registered users, for youth outreach and financial awareness.
Focus areas for youth engagement include education finance, entrepreneurship, internships, and careers within the financial sector.
Sector Strengths and Reforms
The banking sector is currently in a position of strength due to historically low levels of Non-Performing Assets (NPAs).
A "High-powered Committee on Banking Reforms for Viksit Bharat" will be announced soon to guide the next phase of sector evolution.
Deliberations emphasized the need for Public Sector Banks (PSBs) to anticipate emerging opportunities and leverage collective experience to support economic growth aspirations for 2047.
Impact Analysis
Public Sector Banks (PSBs) and Public Financial Institutions (PFIs)Impact
Banks are expected to lead the next phase of economic reforms, leveraging their current financial strength and low NPAs to support the investment cycle and the expanding GCC ecosystem.
Action Required
Strengthen deposit bases through deeper customer engagement and develop specific banking propositions that respond to the financial needs of India’s youth.
Indian Youth (Ages 15–29)Impact
This demographic will see more tailored financial products and increased outreach regarding formal financial systems and career opportunities.
Action Required
Utilize platforms like MY Bharat to enhance awareness of education finance, entrepreneurship, and internship opportunities in the financial sector.
Government and Policy MakersImpact
The Department of Financial Services is setting the strategic direction for long-term banking reforms aimed at achieving "Viksit Bharat 2047."
Action Required
Formally announce the High-powered Committee on Banking Reforms and translate the Confluence’s deliberations into concrete, implementable outcomes.
Key Entities Referenced
High-powered Committee on Banking Reforms for Viksit Bharat: A proposed committee announced by the Finance Minister to drive the next phase of banking reforms based on inputs from the PSB Confluence.
PSB Confluence 2026: A two-day strategic event organized to deliberate on key themes including Deposit Mobilisation, Banking for Youth, and Global Capability Centres for the banking sector.
Department of Financial Services (DFS): The nodal department under the Ministry of Finance responsible for organizing the confluence and overseeing strategic priorities for Public Sector Banks and Financial Institutions.
Mera Yuva Bharat (MY Bharat): A national platform for youth engagement identified as a key partner for strengthening youth connection with the formal financial system and education finance.
Viksit Bharat 2047: The long-term national policy vision toward which these banking reforms and institutional capability improvements are aligned.
Ministry of Finance
DFS Hosts PSB Confluence 2026: Day 1
Deliberations focus on Four themes- Deposit
Mobilisation, Banking for Youth, Supporting the
Investment Cycle and Global Capability Centres
Union Finance Minister Smt. Nirmala Sitharaman highlights
Youth as a critical focus area for the future of banking
High-powered Committee on Banking Reforms for Viksit
Bharat to be announced soon: Smt. Nirmala Sitharaman
Conclusions from PSB Confluence to provide substantive
inputs to the proposed High-Powered Committee on Banking
for Viksit Bharat
Confluence sets the direction for Public Sector Banks and
Public Financial Institutions to support India’s evolving
growth aspirations
प्रव तथ: 17 AUG 2026 5:08PM by PIB Delhi
The first day of the two-day PSB Confluence 2026, organised by the Department of Financial Services
(DFS), Ministry of Finance, brought together senior leadership of Public Sector Banks (PSBs) and Public
Financial Institutions (PFIs), senior officials from the Government and domain experts to deliberate on
emerging opportunities and strategic priorities for the banking and financial sector.
The Confluence is structured around seven themes covering key areas of opportunity for PSBs and PFIs,
with the deliberations aimed at identifying practical strategies and solutions that can be taken forward and
scaled across institutions.On Day 1, the Confluence was addressed by Union Minister for Finance and Corporate Affairs Smt.
Nirmala Sitharaman and Secretary, Department of Financial Services.
The Union Finance Minister highlighted the critical importance of the seven themes identified for
deliberations during the two-day Confluence in taking forward the banking sector, financial inclusion and
credit. She emphasised that the historically low level of Non-Performing Assets (NPAs) places the
banking sector in a position of strength to take forward the next phase of reforms.
On Banking for Youth, the Finance Minister emphasised that the future of banking must reflect the
aspirations of India’s youth, with 29% of India’s population between 15 and 29 years of age.
Secretary, DFS, outlined the objectives of the Confluence and the importance of translating the
deliberations into concrete and implementable outcomes. He spoke about the need for PSBs and PFIs to
anticipate emerging opportunities, strengthen institutional capabilities, draw upon successful approachesacross institutions and leverage their collective experience to support the next phase of economic growth.
Four of the seven themes were taken up for detailed deliberations on Day 1: Deposit Mobilisation,
Banking for Youth, Supporting the Investment Cycle and Global Capability Centres (GCCs). The
discussions highlighted approaches to strengthen the deposit base through deeper customer engagement;
develop banking propositions responsive to the aspirations and financial needs of India’s youth; enhance
institutional capabilities and financing solutions to support the evolving investment cycle; and position
PSBs and PFIs to capture emerging opportunities across the expanding GCC ecosystem. The deliberations
were also enriched by perspectives from expert speakers, including Mr. Seshagiri Rao MVS, Group CFO,
JSW, on Supporting the Investment Cycle, and Mr. Tanay Kediyal, GCC Enterprise Transformation
Expert, on the evolving GCC ecosystem.As part of the discussions on Banking for Youth, the potential of leveraging Mera Yuva Bharat (MY
Bharat), a national platform of the Department of Youth Affairs, Ministry of Youth Affairs and Sports, for
wider youth engagement was explored. Dr. Priyanka Shukla, CEO, MY Bharat, participated as an expert
speaker and shared perspectives on youth outreach. With over 2.60 crore registered users and an extensive
outreach network, MY Bharat can help strengthen young people’s connect with the formal financial
system and enhance their awareness of opportunities relating to education finance, entrepreneurship,
internships and careers in the financial sector.
On Day 2, discussions will cover the remaining three themes: Agriculture and Horticulture Value
Chain Infrastructure, Priority Sector Lending and Reimagining the Credit Card Business, followed
by presentations on actionable strategies and innovative solutions emerging from all seven thematic
groups.
The Confluence reflects the collective endeavour of the Government, PSBs and PFIs to build on the
progress achieved by the banking sector and prepare for emerging opportunities. The deliberations seek to
strengthen institutional capabilities and competitiveness and position PSBs and PFIs to effectively support
India’s evolving growth aspirations and its journey towards Viksit Bharat 2047.
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