Monday, March 13, 2023

Bank while Signature Bank becomes the second victim of the banking crisis following Silicon Valley Bank

Fintech aid companies whose funds are stuck in Sillicon Valley Bank


BENGALURU: In response to the SVB crisis, India's startup ecosystem is providing assistance to its peers. Razorpay is assisting SVB holders in moving their funds into partner banks' Nostro accounts. A nostro account is one that a bank holds in a different lender in a foreign currency to store money for its customers.

Another firm Repeat Club, which gives supporting on its foundation, said it has dispensed $15 million to Indian new businesses whose cash is caught in SVB. It stated that its financing would not incur any platform fees. Additionally, it will make it easier to open a foreign currency account in Gift City.

“To assist other startups in transferring funds from their US banks to India, we have established a dedicated RazorpayX desk. Through our partner banks, RazorpayX users can move money into their Indian current account as FDI. A spokesperson for Razorpay stated, "We are assisting non-RazorpayX users in moving their money to a nostro account through our partner banks."

According to Eklavya Gupta, co-founder of Recur Club, more than 100 startups are interested in managing short-term expenses and financing immediate payroll. According to a statement released by Recur Club, "it is safe to assume that 1,000 Indian startups have been directly affected by the SVB fiasco."

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