At least three Indian banks—Axis Bank, Kotak Mahindra Bank, and ICICI Bank—along with the Indian unit of HSBC, assembled crack teams to work through the weekend to assist startups affected by the collapse of Silicon Valley Bank open new dollar accounts in Gujarat’s Gift City, which caters to non-residents and offshore entities.
The banks set up specialized teams to assist startups in moving funds to their branches in Gift City when a freeze on transactions is lifted for Silicon Valley Bank.
After a run on the bank on Thursday and Friday, US regulatory authorities led by the California Department of Financial Protection and Innovation shut down SVB and appointed the Federal Deposit Insurance Corp. (FDIC) as a receiver.
Due to SVB’s startup-friendly policies, most US startups, and many Indian startups with US subsidiaries, banked exclusively with the bank. Deposits of significant capital from fundraises also tended to be parked with the bank.
They temporarily lost access to their accounts and those deposits after the bank was shut down on Friday night. Some startups took preemptive action hours before US authorities took charge by transferring funds aided by the Indian banks. Not everyone succeeded.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Quick Edit: The market's green role
The world needs to bend its rising curve of carbon emissions, a goal that's proving elusive. Adding to the challenge, US climate policy is likely to flip back into neglect mode next year.
Growth shouldn't suffer for want of a market fix
Packaged food companies should drive a food-processing revolution and run a campaign for substitution of fresh-veggie demand. It'll crush price volatility and open up space for rate cuts
We should reform import tariffs to boost Make in India!
Tariff reforms to resolve duty inversions can arrest the 'cost competitiveness leak' of Indian manufacturing
Trying to quantify everything may worsen human decisions
'Quantification fixation' is real—and we should learn to resist it
Hope has sprung anew amid the thick haze hovering over COP-29
The climate summit has seen rules being ratified for a carbon market, progress on finance and high corporate participation
Trump's return is set to send the world scouting for fresh options
His confrontational stand on issues will ruffle feathers and make nations review their alignments
Why national pride has not helped clean up Delhi's air
A sense of shame was expected to get it done. That hasn't worked. Do we lack the will and talent?
SEBI CAN DO MORE TO DISSUADE RETAIL F&O SPECULATION
A recent Securities and Exchange Board of India (Sebi) report highlighted the significant losses individual traders have incurred in the equity futures and options (F&O) segment between FY22 and FY24.
Is filing ITR in old regime still valid?
I am with the Indian Army. Until last year, we received Form 16 under the old tax regime, including allowances such as HRA, travel and uniform.
Avoid common mistakes in NRO, NRE accounts: A guide for NRIs
Tips on using NRE and NRO accounts to effectively manage funds, repatriate money and remain tax-compliant
