India’s state minister for technology, Rajeev Chandrashekhar, said that Indian startups have deposits of about $1 billion in SVB.
Indian startups had deposits worth about $1 billion with embattled Silicon Valley Bank and the country’s deputy IT minister said he had suggested that local banks lend more to them going ahead.
California banking regulators shut down Silicon Valley Bank (SVB) on March 10 after a run on the lender, which had $209 billion in assets at the end of 2022.
Depositors pulled out as much as $42 billion on a single day, rendering it insolvent. The U.S. government eventually stepped in to ensure that depositors had access to all their funds.
“The issue is, how do we make startups 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?” India’s state minister for technology, Rajeev Chandrashekhar said late Thursday night in a Twitter spaces chat.
Hundreds of Indian startups had more than a billion dollars of their funds in SVB, according to his estimate, Chandrashekhar said.
In a tweet, a 116-year-old Mumbai bank called SVC Bank, which was in trouble after SVB’s collapse clarified that it had no relation to SVB.
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