Silicon Valley Bank Case: MoS IT Rajeev Chandrasekhar asks startups to explore ways to use the Indian banking system

The bankruptcy of the US-based Silicon Valley Bank (SVB), which cost stakeholders millions of dollars in wealth, has wreaked havoc on the international stock markets. It triggered the biggest rush into bonds after Lehman Brothers' case in 2008. With many market participants looking to preserve holdings in line with their cut loss limits, it led to risk-off bets and spread uneasiness. After this news broke last week, stock markets around the world crashed.

In the backdrop of this crisis, Minister of State (MoS) for Electronics and IT Rajeev Chandrasekhar met with over 450 entrepreneurs, VCs, and stakeholders. He addressed media personnel after the first round of discussions for the IndiaAI programme, which will be launched following 40 days of stakeholder consultations.

In Tuesday's meeting, the MoS said that the government is exploring new avenues to support entrepreneurs. And added that the government will work with banks and stakeholders to encourage the development of innovative credit products. The step is poised to provide startups and VCs with more financing options.

Some of the startups shared that they were able to move their funds to US-based banks, but are exploring ways to shift their accounts to safer destinations.

The minister asked startups to explore ways to use the Indian banking system and shared that the government will try to create a framework to help them continue to operate the way they do in the US without any hassle.

"I would certainly think that we must figure out a way of getting you to use the Indian banking system without changing your business model, how you operate in the US or your payroll in the US or your expenses in the US. We will create a separate framework and create more awareness of this in the earliest possible time," Chandrasekhar said.

The MoS also stated that the IndiaAI programme will make sure that Indian datasets would support the development of AI-based solutions by startups and businesses.

In the Union Budget 2023, Finance Minister Nirmala Sitharaman had announced that IndiaAI prograame will also start three Centres of Excellence (CoEs) for AI and leading industry players will join hands with these centres to conduct interdisciplinary research, developing cutting-edge applications in the agriculture, health industry and sustainable cities.