Sunday, December 22

Indian Public Sector Bank Modify Investment Rules for Fintech Startups

India’s largest public sector bank, State Bank of India (SBI) which has failed to invest in fintech startups despite earmarking funds, is now gearing up to modify rules that can kickstart the infusion, as reported a top company official.

The bank which has designated Rs 50 crore to invest in fintech startups is now going to modify rules to plough in more money that can favour the growth of more companies like online retailer Flipkart and ride-sharing app Ola, which define the country’s dexterity.

Rajneesh Kumar, Chairman at SBI said over an event,

We are a public institution and investments in startups are generally considered very risky. We understand that traditional way of investing will not work.

Kumar has informed that bank already has a board-approved policy that promotes fintech sector as it as has already passed the necessary overweight bodies like Central Vigilance Commission.

Interestingly, SBI has been able to make improvements in some aspects of fintech engagements that include procuring goods from such startups and also playing an active role with the ecosystem through collaborations.

The bank is also in talks for a substantial Rs. 25 crore investment that would facilitate the creation of a collaborative innovation centre Navi Mumbai to promote latest technologies.

Moreover, the bank which has a 430 million customer a base has invested in over 150 startups ranging in various cutting-edge technologies including chatbot, data analytics as informed by the chairman.