The Silicon Valley Bank (SVB) crisis has rocked the start-up ecosystem. However, fintech major Razorpay had a slew of solutions for all the Indian start-ups that are worried about their money being parked with the bank. In a post on the social media platform Twitter, the company said, “It’s crucial for start-ups impacted by the SVB crisis to prepare for moving funds and deal with liquidity. Over the next 48 hours here’s how we can help you.”
The post further listed a few things start-up entrepreneurs can do to bail themselves out of the crisis. This includes becoming ‘Fund Movement Ready’ with a global multi-currency bank account or a GIFT City bank account, enabling business continuity with working capital through a line of credit of up to $120K, and existing RazorpayX corporate card users can get a line up to $250K on their card. Razorpay also noted that its teams are working 24X7 and anyone who has any queries can reach out to them via email or call.
The last few days saw some shocking developments unravel after it was announced that SVB was to be shut down by US regulators on Friday after the latter took control of SVB’s customer deposits. Despite the chaos, US regulators came forward to help the depositors of SVB.
In a move that will supposedly give start-ups a huge relief, the Treasury, the Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) announced on Sunday that depositors of the troubled Silicon Valley Bank will have “access to all of their money” starting March 13. “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the US bodies said in a joint statement.
The statement which was issued by Janet L. Yellen (Secretary of the Treasury), Jerome H. Powell (Chair at Federal Reserve Board), and Martin J. Gruenberg (Chairman of FDIC) stated, “Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”