The recent US government response to the failure of one of the biggest banks, Silicon Valley Bank, according to IT State Minister Rajeev Chandrasekhar, has eliminated the risk for Indian startups, and He declared that the crisis is over. Startups in India are more confident in the Indian financial system. The US government has also stated that money for Silicon Valley Bank depositors beginning Monday.
Tweeted Chandrasekhar: “This US government move exaggerates the imminent risk to Indian companies. This disaster teaches Indian startups to put more faith in their financial system.”
Thank you, PM @narendramodiji, FM @nsitharaman, and @RBI, for your ongoing guidance and oversight throughout this, he continued.
Many startups, IT firms, business owners, and venture capital funds and angered by the demise of the Silicon Valley bank last week, but the most recent announcement from the US government has offered those who had accounts in the bank reason for optimism.
The 16th-largest bank in the United States, Silicon Valley Bank (SVB), situated in California, the California Department of Financial Protection and Innovation (CDFPI) on Friday. The FDIC was then chosen as the bank’s receiver.
One of the worst bank failures since the global financial crisis of 2008, SVB had a strong presence in the tech startup scene and served as the default bank for many successful firms.
The bank failed after customers withdrew their deposits, including numerous venture capital firms and VC-backed businesses over time. This caused a run on the bank ( most large US banks last for over a decade).
Bank runs happen when customers or investors start withdrawing money hastily, preventing the bank from being able to meet its obligations on time.
Treasury Secretary Janet Yellen released a proposal on Sunday that permits the Federal Deposit Insurance Corporation (FDIC) to finish its interpretation of the Santa Clara, California-based bank after hearing recommendations from the Federal Reserve boards and the Federal Reserve Deposit Insurance Corporation (FDIC) and consulting with the president. Silicone stock with approval. Valley Bank (SVB) in a manner that properly safeguards every depositor.
In a related incident, the UK government revealed on Monday that it had awarded large London-based bank HSBC the contract to buy the ailing Silicon Valley bank’s UK branch for £1, giving them access to more than 3,000 customers’ savings of approximately £6.7 billion. The sum has out.
Nazara Tech, a platform for diversified sports media and gaming, said on Monday that the US administration’s statement on depositor protection for the full amount is a “positive result” and inspires confidence in money. Silicon Valley Bank currently holds deposits totaling Rs 64 crore with two of Nazara Tech’s subsidiaries.
In response to the Silicon Valley banking crisis, Nitish Mittersen, founder and CEO of Nazara Technologies, firmly ruled out the idea of layoffs inside the company and asserted that the two subsidiaries have sufficient operating capital to cover their needs, including payroll.
Most of India’s software-as-a-service firms in the US and organizations connected to the Y Combinator incubator are among those suffering the effects of the Silicon Valley Bank collapse, even though many participants and industry experts think it will certainly have an impact. Be concise.
Y Combinator-backed startups receive their payments into their accounts at SVB, but several Indian companies associated with the incubator, such as Meesho and Razorpay, were able to get their money out of the bank on time.
Paytm CEO Vijay Shekhar Sharma clarified on Saturday. Silicon Valley Bank was an early investor, but the bank went out of business long ago to other private investors. “With simply attractive returns on your total investment.” Was $1.7 million.”
Sharma clarified in his tweet that SVB is currently not a shareholder.
Eklavya Gupta, the founder and CEO of Recur Club, a fintech company, said. With operations in the US and India, some sizable non-Y Combinator SaaS companies on the West Coast have made large investments in SVB.