Silicon Valley Bank crisis: Start-ups can rely on Indian banking system, assures Rajeev Chandrasekhar

Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar met start-ups on Tuesday in the wake of the Silicon Valley Bank (SVB) crisis. He met with 400 Indian start-ups and assured them that the Indian government is working on ways to shield them from economic vulnerability.
 
He also reassured them they are focused on helping them navigate through the challenges posed by the events unraveled in the last few days. The minister noted that he has held discussions with different stakeholders of the ecosystem and "shared how the government is laser-focused on ensuring that every start-up navigates through this storm."

"The Indian banking system is trusted and robust and startups must start using it, " he said.

According to Yashraj Akashi, Co-chair at PHDCCI for start-ups, Chandrasekhar has proposed a slew of measures to bail the start-ups out during the meeting. This includes enabling US funds to transfer to the Indian banks. This move will enable smooth transfer of money by start-ups and VCs.
 
Another solution mentioned was deposit-backed credit lines. The government will work with banks and stakeholders to encourage the development of innovative credit products. 
 
Akashi said that the government is exploring new avenues to support entrepreneurs. 
 
Chandrasekhar also discussed with start-up entrepreneurs and others the need for Indian banks to engage and support start-ups proactively via new product offerings.
 
While SVB’s troubles are far from over, US regulators, including the Treasury department, the Federal Reserve and Federal Deposit Insurance Corporation (FDIC), brought some cheer to start-ups after they announced that depositors of the troubled SVB will have “access to all of their money” starting March 13. 
 
The Federal Reserve also mentioned that it will provide “additional funding” to eligible depository institutions to help them meet the needs of the depositors.

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