Over 450 Indian start-ups, venture capitalists, and investors have met with the Indian government to discuss the impact of the collapse of the Silicon Valley Bank (SVB).
Among the issues raised were the following:
- Blockages in international wire transfers
- Disruptions due to threshold limits on withdrawals
- Lack of communication from US agencies
- The need for preferential access to credit
Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, assured the group that the ministry would put together a list of suggestions and provide it to the finance minister on their behalf.
The government will consider suggestions such as preferential credit access or new credit products for start-ups.
The stakeholders also called for a government-led evacuation program to retrieve deposits from SVB, which international wires would otherwise block.
The immediate priority for the government is to help affected start-ups, which should consider processing times as a transition period while solutions are found.