America’s Silicon Valley Bank collapsed about a week ago and along with it many people lost their money. The closure of this American bank has badly affected many startups in India. Billions of dollars of many startups of India were deposited in this bank. This information has been given by a minister of the Government of India.
Many startups have been affected
Minister of State for Electronics and Information Technology Rajeev Chandrasekhar was addressing a Twitter townhall recently . The cabinet minister said that when the Silicon Valley Bank was closed, more than one billion dollars of Indian startups’ capital was deposited in it. He also added that this is the most conservative estimate. Many startups have been directly affected by the closure of the bank.
So many transfers in GIFT City
However, another side has also emerged from this crisis. Chandrasekhar told that during the last few days, more than 250 million dollars have been transferred from the Silicon Valley Bank to the banks located in the Gift City of India. He said that this is a new respect for the Indian banking system.
Report submitted to the Ministry of Finance
Earlier, on another occasion, Chandrashekhar told that more than 460 Indian startups have Consulted to understand the impact of the Silicon Valley Bank crisis. He had said that he has submitted its report to the Finance Ministry. He also said that there is a need to consider ways to bring Indian startups to Indian banks instead of the complicated foreign banking system.
Banks and startups should work together
The Union Minister said that the Indian banking system is one of the healthiest systems in the world. In such a situation, both banks and startups need to work together. Indian banks may be more friendly to startups. Now the time has come for the Indian banking system to consider startups as a niche target segment.
Banks can take advantage
Chandrasekhar, referring to the Silicon Valley bank crisis, said that in this our For the opportunity is also hidden. He said that our government banks also have branches in America, but they are able to do very little business. If Indian startups can deposit more than a billion dollars in a US bank like SVB, branches of SBI or Bank of Baroda can also take advantage of it.
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