The parliamentary standing committee on finance chaired by BJP leader and former minister of state for finance Jayant Sinha has also called representatives of ‘Indian Private Equity and Venture Capital Association (IVCA)’ to discuss “Impact of crisis in certain Global Banks on India’s startup ecosystem,” the notice of the meeting reads.
The 31-member panel has MPs from all parties, including senior Congress leader and former finance minister P Chidambaram, former union minister Ravi Shankar Prasad and former deputy chief minister of Bihar Sushil Modi.
“Hearing the views of representatives of the Ministry of Finance (Department of Financial Services), Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) on the subject ‘Impact of crisis in certain Global Banks on India’s startup ecosystem,” the agenda of the meeting states.
The secretary in the department of financial services, and executive director from RBI, are expected to attend the meeting, where members will discuss the impact of collapse of Silicon Valley Bank and the recent crisis at Credit Suisse, on Indian businesses, especially startups, sources in the panel told ET.
Indian startups had deposits worth $1 billion in the beleaguered SVB, MoS IT Rajeev Chandrasekhar had said earlier this month.
When contacted, Sinha said, “The standing committee is to study fast-moving developments in the global financial system and its impact on India’s businesses and entrepreneurs.”Startup-focused lender SVB Financial Group on March 10 became the largest bank to fail since the 2008 financial crisis. Its business in the US was acquired by First Citizens Bank while its UK operations were taken over by HSBC.