MoS Rajeev Chandrasekhar addressed over 450 Indian startups and stakeholders on the recent collapse of Silicon Valley Bank (SVB). The Indian government assures them that it is focused on helping them overcome this crisis.
Union Minister of State for Skill Development & Entrepreneurship and Electronics & IT Shri Rajeev Chandrasekhar interacted with over 450 startups, owned/co-owned by Indians, Venture Capitalists (VCs), Industry leaders and other key stakeholders on the collapse of Silicon Valley Bank. The Minister also said that for those startups whose deposits were going to be made whole, but have no access to it currently, “We will explore the option of whether any credit lines can be made available in US dollar or Indian rupees. We will also try to see if more credit products like in the US, can be made available to you and make it easier for them to move from SVB to any other Indian Bank in the US.”
Exploring the Indian Banking System
The Minister suggests that Indian startups explore the country’s banking system. He said that the India’s banking system is stable and robust, without having to change their business models. Indian Startups have a natural inclination to use banks like SVB, but with its collapse, the Indian banking system presents a viable alternative.
Attendees’ Concerns
Attendees’ express concerns about the transfer of US dollar deposits to India and US-based branches of Indian banks, among other issues. The government promises to explore how best to address their concerns and facilitate the transfer of their deposits to Indian banks, IFSC centered foreign banks, or any other Indian bank with a presence in the United States.
Rajeev Chandrasekhar said, “We will share list of suggestions with Finance Minister Smt Nirmala Sitharaman and explore how best your concerns can be addressed. We will also explore how smoothly we can facilitate the transfer of your US dollar deposits to Indian banks, IFSC centred foreign banks or any other Indian bank which has presence in the United States.
Assistance from the Government
The Minister assures startups that the government will explore options for credit lines to those whose deposits were going to be made whole but have no access to it currently. The government will also try to make credit products like those in the US available to startups and make it easier for them to move from SVB to other Indian banks in the US.
The Minister also said that for those startups whose deposits were going to be made whole, but have no access to it currently, “We will explore the option of whether any credit lines can be made available in US dollar or Indian rupees. We will also try to see if more credit products like in the US, can be made available to you and make it easier for them to move from SVB to any other Indian Bank in the US.”
CEO, MeiTY Startup Hub Available for Help
The startups can approach the CEO, MeiTY Startup Hub, for any problems/issues they face, and the government will do its best to help them out.
The Minister’s consultation with startups and stakeholders is a positive step towards addressing the situation and offering any assistance to India’s innovation and startup ecosystem.
(India CSR)
