SBI launches Rs 200 crore fund to invest in fintech startups

In order to fund start-ups in the financial technology (fintech) space, country's largest lender SBI has set up a Rs 200 crore fund.

"This fund shall consider assistance of up to Rs 3 crore to an Indian registered company for promoting their business innovations using IT in India for banking and related technology," SBI Chairman Arundhati Bhattacharya said at a CII event on Thursday.

The 'IT Innovation Start-up Fund' will have corpus of Rs 200 crore, she said.

The announcement comes against the backdrop of a greater thrust from the Centre on developing the start-up ecosystem.

With digital technology making greater in-roads into banking, majority of financial institutions have upped their engagement to spot startups in the fintech space.

Bhattacharya said the bank has also formed a mentoring team to assist start-ups. It will support, monitor and make a report on the progress and the utilisation of the funds by the venture.