The Union Minister of State for Electronics and Information Technology, Rajeev Chandrashekar stated in a Twitter spaces conversation that Indian startups have deposits of over $1 billion (about Rs 8,250 crore) in the Silicon Valley Bank (SVB) on March 16.
SVB recently made headlines for going bankrupt due to illiquidity after depositors withdrew over $42 billion (about Rs 17 lakh crore) in a single day. The bank was declared insolvent and California regulators handed the bank over to FDIC on March 10.
The Federal Reserve and FDIC were quick to intervene and assure depositors that their funds will be returned to them from the beginning of March 13. The insured depositors were to receive up to $250,000 of their deposits first and then uninsured depositors' accounts would be settled.
The minister has stated that he has suggested the local banks give a line of credit to the startups till their money was released. He also said that local banks lend more going ahead. The minister said that he has met with over 460 stakeholders of the startups affected by SVB closure and put forward their suggestions to the Finance Minister.
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