Government will facilitate smooth funds transfers from US to Indian banks, Rajeev Chandrasekhar tells start-ups

The Centre on Tuesday 14 March  assured the start-ups that it is taking proactive measures to address concerns raised by them in view of the closure of Silicon Valley Bank (SVB).

In a meeting called by the government, Union Minister of State for Electronics, and Information and Technology Rajeev Chandrasekhar said the government will work with banks and stakeholders to encourage the development of innovative credit products.

He said the government would enable start-ups and venture capitalists (VCs) in smooth and non-disruptive transfer of funds from the US to Indian banks.

Besides, the possibility of providing ‘deposit-backed credit lines’ was discussed in the meeting.

Sources said that more than 450 entrepreneurs, VCs, and stakeholders participated in the meeting to discuss the fallout of SVB and how the government can help the star-ups in overcoming the crisis.

The government’s priority is to tide over this crisis. We are laser focussed on making sure that every start-up is able to navigate this storm, Chandrasekhar said.

He said the government will also work with banks and stakeholders to encourage the development of innovative credit products, adding that the Indian banks in the US need to engage and support start-ups proactively via new product offerings.

The start-ups have welcomed this gesture and said the government is taking proactive measures to address their concerns.

“This is a welcome step as the meeting explored financing options for start-ups and VCs. It’s encouraging to see the government’s efforts towards fostering a supportive ecosystem for entrepreneurs,” said Yash Akashi, founder at TedxGateway.