Banks Set to Hire Graduates Under 25 as Apprentices with Stipends

Banks are considering hiring graduates under 25 years old as apprentices within a month, according to a top industry official. These apprentices will receive a monthly stipend of Rs 5,000 and will be trained in specialised skills during their tenure, stated Sunil Mehta, the chief executive of the Indian Banks Association (IBA).

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Government's Internship Initiative

This initiative aligns with Finance Minister Nirmala Sitharaman's budget announcement. The government aims to provide internships at top-500 companies for up to 1 crore youth over the next five years. Mehta explained that banks would play a significant role in this scheme by offering training in areas like marketing and recoveries, which do not require skilled manpower.

Candidates must be graduates aged between 21 and 25 years, non-taxpayers, and should not hold degrees from prestigious institutions like IIT or IIM. Mehta mentioned that these apprentices could be hired for up to 12 months and might also work as business correspondents to extend banking services to remote areas.

Potential Long-term Employment

Mehta assured that these candidates would not disappear after their apprenticeship. There is a possibility that some may be absorbed as permanent employees. He highlighted that the IBA had a meeting with the Secretary of the Ministry of Corporate Affairs regarding the scheme's implementation.

The scheme is expected to be operational within a month. Although Mehta did not disclose the total number of apprentices to be hired, he confirmed that all banks would participate in this initiative. He also noted that there would be government support for implementing the scheme.

"There are a lot of areas where we don't need any skilled manpower, for example, marketing, recoveries. We can give them training in those areas and they can create employment for themselves," Mehta said.

The IBA's involvement underscores the banking sector's commitment to supporting youth employment through practical training opportunities. This move could significantly impact young graduates seeking to enter the workforce with relevant skills and experience.

The initiative represents a collaborative effort between banks and the government to address youth unemployment by providing valuable work experience and potential job opportunities in the banking sector.