Minister of State for Electronics and Information Technology Rajeev Chandrasekhar. File
| Photo Credit: KAMAL NARANG
About $1 billion in funds of Indian start-ups have been impacted by the collapse of California-based Silicon Valley Bank (SVB), Minister of State for Electronics and Information Technology Rajeev Chandrasekhar mentioned on Thursday night time.
Mr. Chandrasekhar mentioned that of this quantity about $200 million had been moved to financial institution accounts in GIFT City in Gujarat.
“The issue is, how do we make start-ups transition to the Indian banking system, rather than depend on the complex cross-border U.S. banking system with all of its uncertainties in the coming month,” Mr. Chandrasekhar mentioned throughout a Twitter Spaces dialogue.
The U.S. Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have assured depositors that they are going to all be made complete, though FDIC is simply required to reimburse depositors as much as $2,50,000 in misplaced deposits. The SVB collapse adopted mass withdrawals, spurred by issues on the financial institution’s leverage and fundamentals that went viral on messaging teams and social media.
(With inputs from Reuters, PTI)
