Silicon Valley Bank Crisis: This is the biggest financial crisis in the banking sector after 2008.
New Delhi:
Silicon Valley Bank collapse: Silicon Valley Bank was considered most important for funding the Startup Ecosystem around the world. Only last Friday, the American regulator declared the bank bankrupt and ordered the confiscation of its assets and the bank was locked. Many Indian startups have been affected by the order to close the Silicon Valley Bank after its bankruptcy. Indian startups are incorporated there to get capital from the American market and they get capital from venture capital firms and other financial institutions. Indian startups used to deposit a large part of it in Silicon Valley Bank. Because of which he is trapped in financial crisis due to the bankruptcy of the bank.
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Most affected by this banking crisis (Silicon Valley Bank Crisis) are those Indian Startups whose customer base was in the North American market. These firms belonged to the software-as-a-service category in the US, which mostly deposited deposits in Silicon Valley banks. Many Indian Startups have said that they have capital for business operation for 2 to 5 months as a major part of their funds is stuck due to Silicon Valley Bank bankruptcy.
Earlier it was expected that the US government would announce a relief package to bail out Silicon Valley Bank (SVB). But on Sunday, the US government flatly refused to give any bailout package for the bank. At present, the Federal Deposit Insurance Corporation (FDIC) of America has started considering options to overcome the Silicon Valley Bank crisis. It is being said that an option to revive the Silicon Valley bank is also to acquire the bank.
Minister of State for Electronics and IT, Rajeev Chandrasekhar has called an important meeting on Tuesday to save Indian Startups from this major banking crisis after 2008. Is. Regarding this, Union Minister Rajeev Chandrashekhar has told NewsBust India that he wants to sit with startups to understand their problem and consider options to save them from this crisis. It is possible that by tomorrow evening, an indication may come from the Government of India that will the Government intervene in this matter to save Indian Start from the current crisis?