DPIIT in talks with IBA to get banks to reach out to start-ups

The Department for Promotion of Investments and Internal Trade (DPIIT) is in discussions with the Indian Banks Association (IBA) on ways to get banks to reach out to Indian start-ups to understand their financial requirements and help improve penetration of branches across sectors and cities, said a senior official.

The government has also allayed fears of a possible start-up funding crunch in India, following the collapse of the Silicon Valley Bank, as programmes such as the start-up fund-of-funds, credit guarantee and seed fund schemes, were providing resilience to the eco-system.

“We have had talks with IBA so as to take proactive steps to reach out to Indian start-ups, understand their financial requirements, to understand how to improve the penetration of their banks and their branches across different sectors, different cities and in different tier two and tier three towns as well. IBA has also started doing intensive workshops across different states and Union Territories in the country,” said Manmeet Nanda, Joint Secretary, DPIIT.