“Important to prepare to move funds…”: Fintech major Razorpay shares how startups can make it happen
The Silicon Valley Bank (SVB) crisis has shaken the startup ecosystem. However, fintech major Razorpay had a number of solutions for all those Indian start-ups who are worried about their money being parked at the bank. In a post on social media platform Twitter, the company said: “It is crucial for start-ups affected by the SVB crisis to prepare to move funds and manage liquidity. In the next 48 hours you will see how we can help you.” The post went on to list some things start-up entrepreneurs can do to get out of the crisis. This includes becoming ‘Fund Movement Ready’ with a multi-currency global bank account or a GIFT City bank account, enabling business continuity with working capital through a line of credit up to $120,000, and existing RazorpayX business card users can get a line up to $250K on their card .
Razorpay also noted that their teams work 24×7 and anyone with questions can contact them via email or call. In recent days, there has been a shocking development after it was announced that SVB would be shut down by US regulators on Friday after the latter took control of SVB’s customer deposits. Despite the chaos, American regulators came forward to help SVB’s depositors. In a move that is supposed to give start-ups a huge relief, the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) announced on Sunday that depositors at the troubled Silicon Valley Bank will have “access to all their money” starting March 13″ No losses related to the dissolution of Silicon Valley Bank will be borne by taxpayers,” the US agencies said in a joint statement. The statement issued by Janet L. Yellen (Secretary of the Treasury), Jerome H. Powell (Chairman of the Federal Reserve Board) and Martin J. Gruenberg (Chairman of the FDIC) stated: “Today we are taking decisive action to protect the American economy by to strengthen public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its important roles of protecting deposits and providing access to credit to households and businesses in a way that promotes strong and sustainable economic growth.” The statement also announced a similar systemic risk exemption for Signature Bank, New York, which was closed by the state’s charter authority on Sunday.
Also Read: From Yes Bank to Silicon Valley Bank: How the RBI and US Fed navigated the fallout from the collapse of two mid-sized banks
