te Silicon Valley Bank case: Indian startups have withdrawn this much money from SVB accounts in last 24 hours | Zee Business

Silicon Valley Bank case: Indian startups have withdrawn this much money from SVB accounts in last 24 hours

Startups have the facility of withdrawing 100% of their capital from SVB

Silicon Valley Bank case: Indian startups have withdrawn this much money from SVB accounts in last 24 hours
Indian startups wishing to withdraw funds from SVB must first open a bank account in the US. The amount will be first transferred to their American accounts and then to their Indian accounts. Photo: Zee Biz

Indian startups are taking quick action to secure their money stuck with the now-bankrupt Silicon Valley Bank (SVB).

In the last 24 hours alone, Indian startups have reportedly withdrawn Rs 2400 crore from the Californian bank.

However, SVB hasn't started direct foreign transfers for its accountholders.

TRENDING NOW

The entire balance of SVB has been transferred to the Deposit Insurance National Bank of Santa Clara (DINB).

DINB is a Federal Deposit Insurance Corporation (FDIC)-established bridge bank.

A depositor can withdraw their money from DINB with immediate effect.

However, delays are expected. 

Silicon Valley Bank case: What Indian startups can do
Indian startups wishing to withdraw funds from SVB must open a bank account in the United States of America.

Their money will be first transferred to their respective bank accounts held in the USA and then to their Indian accounts.

Startups have the facility of withdrawing 100% of their capital from the bank. 

Founders who have a US social security number can open a new bank account in 24 hours.

In general, it takes five days to open an account in the US.

Delayed transfers expected

It takes 30 minutes to transfer money from an American account to an Indian account.

However, in the current scenario, people are facing a delay of as many as 2–3 days to complete the process. 

After its collapse last week, SVB's holdings are being managed by FDIC.

A day after SVB's closure, the US government said that the depositors could get access to their funds in the bank.

The Santa Clara-headquartered bank was popular among startups, including cryptocurrency firms.

It is assumed that Indian startups have large deposits in SVB as well.

As of December 2022, SVB had reportedly $209 billion in total assets and about $175 billion in total deposits.

Reported By: ZeeBiz WebTeam
Written By: ZeeBiz WebTeam
Edited By: ZeeBiz WebTeam
Updated: Wed, Mar 15, 2023
05:02 pm
Noida, ZeeBiz WebDesk
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