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India Says Tech Startups Had About 1 Billion in Silicon Valley Bank

Indian technology minister Rajeev Chandrashekhar said on Thursday that Indian tech startups had deposits worth $1 billion at California’s Silicon Valley Bank (SVB). shut down The regulator made the announcement on March 10.

The figures cited by Chandrashekhar were considerably higher than the impression India had told Ever about exposure to SVB. The technology minister said last Sunday that he would talk to start-up management for a week to “understand the impact on them”, and on Thursday, hundreds of Indian companies sent funds to banks. He said he determined he had.

“The question is how do we transition the startups to the Indian banking system rather than relying on the complicated cross-border US banking system with all its uncertainties in the coming months. ” Chandrashekhar Said.

One of the suggestions Chandrashekhar received during a week-long conversation with Indian tech executivesIts purpose was to “provide startups holding funds in SVB with a deposit-secured line of credit against them.”

“We will also try to make more US-like credit products available and make it easier to migrate from SVB to other Indian banks in the US,” he said. Said Indian entrepreneurs and venture capitalists gathered on Tuesday, with some of the participants pitching the idea of ​​deposit-backed credit.

“India’s banking system is the most stable and robust and should be considered as part of the organizational framework. We have to find a way to tap into the Indian banking system without changing the model,” he said.

INDIA – NOVEMBER 24: Rajeev Chandrashekhar, Chairman, Hindustan Infrastructure, ICONS (India Today Council for News and Society), Taj West End, Bangalore, Karnataka, India (India Today Icons) (Photo: Gireesh Gv/The India Today) Group) via Getty Images)

Nearly every public statement by Indian ministers over the past week has emphasized the stability and strength of the Indian banking system compared to the SVB debacle.few people wanted live Above A tick crisisbillionaire Gautam Adani’s gigantic industrial empire accused of fraud and stock manipulation. I sighed.

Q Arvind Chari, Chief Investment Officer, India claimed India’s ability to withstand financial blast from Adani on Wednesday and SVB was a sign of the strength and resilience of the Indian system.

“Yes, India is in chaos. There is room for cleanup in that corruption, so India continues to disappoint both optimists and pessimists,” he wrote.

Shari also praised Indian households as the source of the nation’s financial strength, saying that Indian households on average have less debt than other developed countries, with most of the money being directed towards stable investments such as land. tend to be “savvy asset allocators” and gold.

Chari said the lesson India should learn from the SVB is the importance of a quick ‘fix’.

“India now has bankruptcy laws to deal with corporate failures. A financial resolution code is needed to expedite the resolution of failures of financial institutions,” he advised.

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