Rajiv Chandrasekhar, Minister of State for Electronics and Information Technology. file | photo credit: Kamal Narang

The closure of California-based Silicon Valley Bank (SVB) has impacted nearly $1 billion in funding for Indian start-ups, Minister of State for Electronics and Information Technology Rajeev Chandrasekhar said on Thursday night.

Of this amount, about $200 million has been transferred to bank accounts in Gujarat’s GIFT City, Mr Chandrasekhar said.

“The issue is how do we transition start-ups into the Indian banking system, instead of relying on the complex cross-border US banking system with all its uncertainties in the coming months,” Chandrasekhar said during a Twitter space. Discussion.

The US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have assured depositors that they will all be met, even though the FDIC requires depositors to reimburse deposits up to $250,000. The collapse of SVB was followed by mass withdrawals, driven by concerns over the bank’s leverage and fundamentals, which went viral on messaging groups and social media.

(With inputs from Reuters, PTI)