State Bank of India, the largest bank in India has set up an INR 200 Cr fund to support the startups in Financial Technology sector.
Speaking at a CII event, Arundhati Bhattacharya, Chairperson – SBI said that the new fund will provide support of upto INR 3 Cr to the Indian registered companies which are working on banking and related technologies.
The new announcement from the national bank of India comes at a time when the government is trying to create a buzz around startups. With initiatives like Digital India in place, the banking sector in India has seen a lot of users adapt to the online medium of banking and it has given a lot of scope to the fintech startups to grow in the environment.
Speaking further, Arundhati Bhattacharya announced that the bank will set up a mentoring team to better assist the startup it is funding. The mentoring team will also look at how the investment is being spent. Also, SBI will further provide financial and legal assistance if needed by the startup.
To assist the whole system better, the bank has started a start-up branch in Bangalore, known as InCube. The startup branch acts as a single point of contact for the startups to get any banking and financial assistance.
Arundhati showed her concern over the risks associated with the fintech scenario and added that there needs to be a regulatory authority to address the kind of risks associated with banking and fintech.