Indian startups had deposits price about $1 billion with embattled Silicon Valley Bank and the nation’s deputy IT minister stated he had instructed that native banks lend extra to them going forward.

California banking regulators shut down Silicon Valley Bank on March 10 after a run on the lender, which had $209 billion in property on the finish of 2022.

Depositors pulled out as a lot as $42 billion on a single day, rendering it bancrupt. The U.S. authorities ultimately stepped in to make sure that depositors had entry 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 expertise, Rajeev Chandrashekhar stated late Thursday night time in a Twitter areas chat.

Hundreds of Indian startups had greater than a billion {dollars} of their funds in SVB, based on his estimate, Chandrashekhar stated.

Chandrashekhar met greater than 460 stakeholders this week, together with startups affected by SVB’s closing, and stated he had handed on their recommendations to Finance Minister Nirmala Sitharaman.

Indian banks might provide a deposit-backed credit score line to startups that had funds in SVB, utilizing these as collateral, Chandrashekhar stated, citing one of many recommendations he had handed on to the Finance minister.

India has one of many world’s largest startup markets, with many clocking multi-billion-dollar valuations in recent times and getting the backing of international buyers, who’ve made daring bets on digital and different tech companies.