Timesof24
California banking regulators shut down Silicon Valley Financial institution (SVB) on March 10
MUMBAI:
Indian startups had deposits price about $1 billion with embattled Silicon Valley Financial institution and the nation’s deputy IT minister stated he had advised that native banks lend extra to them going forward.
California banking regulators shut down Silicon Valley Financial institution (SVB) on March 10 after a run on the lender, which had $209 billion in property on the finish of 2022.
Depositors pulled out as a lot as $42 billion on a single day, rendering it bancrupt. The US authorities ultimately stepped in to make sure that depositors had entry to all their funds.
“The difficulty is, how can we make startups transition to the Indian banking system, quite than rely upon the advanced cross border US banking system with all of its uncertainties within the coming month?” India’s state minister for know-how, Rajeev Chandrashekhar stated late Thursday evening in a Twitter areas chat.
Lots of of Indian startups had greater than a billion {dollars} of their funds in SVB, in accordance with his estimate, Mr Chandrashekhar stated.
Mr Chandrashekhar met greater than 460 stakeholders this week, together with startups affected by SVB’s closing, and stated he had handed on their options to Finance Minister Nirmala Sitharaman.
Indian banks may supply a deposit-backed credit score line to startups that had funds in SVB, utilizing these as collateral, Mr Chandrashekhar stated, citing one of many options he had handed on to the Finance minister.
India has one of many world’s greatest startup markets, with many clocking multi-billion-dollar valuations lately and getting the backing of overseas traders, who’ve made daring bets on digital and different tech companies.
(Aside from the headline, this story has not been edited by Timesof24 employees and is printed from a syndicated feed.)
