According to Union Minister Rajiv Chandrasekhar, Silicon Valley Bank (SVB) had deposits of about $1 billion belonging to Indian startups. The failure of the US-based bank, which was an important source of funding for startups, sent shockwaves through the global financial system.
Chandrasekhar said during a Twitter live session that deposits of over $200 million of startups have been transferred to GIFT Citibank. He also said that there were deposits of close to $1 billion svb Who was responsible for Indian startups.
“I calculated very empirically and anecdotally that there was over a billion dollars of startup capital in the form of deposits. According to some, this is a conservative estimate. There were deposits in SVB that are responsible for Indian Startup Close to a billion or more,” said the Minister of State for Electronics and IT.
Read also: Startups around the world gear up for a lifetime after SVB
Further, he has taken up the issue of failure of SVB with the Finance Minister. nirmala sitharaman And has advocated for fine-tuning the Indian banking system according to the needs of startups.
Recently, cash-strapped banks have taken nearly $300 billion in loans from the Federal Reserve, the central bank announced on Thursday. Nearly half the money – $143 billion – went into holding companies for the two major banks that failed last week, SVB and Signature Bank, triggering widespread alarm in financial markets. The Fed did not disclose the banks that received the other half of the funding or how many of them did so.
Read also: A bank run and 100 hours of chaos
Holding companies for the two failed banks were established by the Federal Deposit Insurance Corporation, which took over both banks. The money they borrowed was used to pay their uninsured depositors, with bonds owned by both banks posted as collateral. The Fed said the FDIC has guaranteed the loan repayments.
The figures reveal the scale of the Fed’s support to the financial sector following the collapse of two banks late last week. The rest was borrowed by banks to raise cash, probably to pay depositors who tried to withdraw their money. Several mega banks such as Bank of America have reported receiving an influx of funds from smaller banks since last weekend’s bank failure.
(with agency inputs)
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