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SBI creates Rs 200 crore startup fund and mentor team

Mumbai, June 16, 2016: The State Bank of India is perhaps the first public sector bank to take the initiative to reach out to startups and fintechs. In January this year it launched InCube, a special branch for startups in Bengaluru, that offers support, advisory services and hand holding. Going a step further, the bank just announced a Rs 200 crore startup fund.

arundhattiSpeaking at the CII Banking Tech Summit 2016 in Mumbai, SBI Chairman Arundhati Bhattacharya said, “We have created an IT Innovation Startup fund and have set aside Rs 200 crore for this. This fund shall consider (financial) assistance of up to Rs 3 crore to an Indian registered company for promoting their business innovations using IT in fintech for banking and related technology.”

SBI has also set up a mentor team to monitor, support and report the progress and the utilization of the funds by the venture. The team will include experts from the industry to provide financial and legal guidance during the course of the project.

Bhattacharya spoke about the importance and benefits of collaboration between banks and fintechs, but called for a security framework to keep the risks in check.

“There also needs to be a suitable regulatory framework in place to address the associated risks: technology risks, cyber security risks, data theft risks, risks of transactions by unregulated financial and non-financial entitles,” said Bhattacharya.

The bank will cross-sell its products through collaboration with fintechs, informed Bhattacharya .

Brian Pereira

Brian Pereira is an Indian journalist and editor based in Mumbai. He is the Founding Editor of Digital Creed, which he founded in 2015. A technology buff, former computer instructor, and software developer, Brian has 28 years of journalism experience (since 1994). He is sound and confident about his knowledge of business technology concepts. And he is a believer in continual education/learning. Brian is the former Editor of CHIP and InformationWeek magazines (India). He has written hundreds of technology articles for India's leading newspaper groups such as The Times of India and Indian Express Newspapers (among others). And he has conducted more than 300 industry interviews during his journalism career. Brian also writes on Aviation, cybersecurity, startups, and topics directed at small and medium businesses. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. Follow Brian on Twitter (@creed_digital) and LinkedIn.

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