![](\"https:\/\/im.rediff.com\/money\/2023\/mar\/13svb.jpg?w=670&h=900\")
<\/p>\nAround $200 million worth of deposits of Indian start-ups have been withdrawn from Silicon Valley Bank (SVB), which was taken over by US banking regulators last week after it collapsed, and moved to the Gujarat International Finance Tec-City (GIFT City) IFSC, Rajeev Chandrasekhar, minister of state (MoS) for electronics and information technology said on Thursday.<\/p>\n
<\/p>\n
“It turns out that there was over a billion dollars of deposits of Indian start-ups in SVB.<\/p>\n
“The existential, solvency crisis that was there six-seven days ago has become much more manageable, even the short-term liquidity crisis is being addressed as the bank allows access to deposits,” the minister said while speaking at Lenovo’s Tech World India Edition event.<\/p>\n
“What start-ups are looking for is risky instruments as much as just safe havens, where their capital is deposited and is available to them when they need it.”<\/p>\n
He emphasised that in the current situation, the Indian banking system was being recognised for its fast expansion, growth and prudence, which was important for depositors.<\/p>\n
Chandrasekhar recently held a virtual meeting with over 460 representatives of start-ups, venture capitalists, and investors directly affected by SVB’s closure.<\/p>\n
While speaking to the minister, several start-ups had complained about “tremendous opacity” and “non-disclosure” from the US agencies.<\/p>\n
According to sources, the minister had asked the stakeholders what needed to be done to help them move banking operations to Indian banks or international banks that have a presence at GIFT City.<\/p>\n
He had also assured them that the IT ministry would put together a list of suggestions and give it to the finance minister on behalf of start-ups.<\/p>\n
The start-ups had suggested measures like newer credit products, relaxation in and awareness about regulations, and reduced expenses during the transfer.<\/p>\n
“I understand as of this morning there is about $200 million worth of those deposits that have moved to GIFT City.<\/p>\n
“At the end of the day, there was a tendency historically to look at the American banking system as the gold standard, turns out it’s not.<\/p>\n
“The Indian financial sector has stayed resilient and strong and it should be the preferred banking partner for our start-ups,” the minister said on Thursday.<\/p>\n