India’s largest lender bank, State Bank of India(SBI) has committed to setup a Rs 200 crore fund for Fin-Tech startups providing advancements and support system to promising startups. The fund would be used to provide upto Rs 3 crore for any India registered company for advancing their business in India through the use of information technology for banking.
According to Chairman of SBI, Arundhati Bhattacharya, the entity would promote and ensure usage of funds for the right purposes. Further, it will have one or more technical experts on board for advisory roles and the team would provide legal and financial assistance to startups as and when required.
At a Confederation of Indian Industry event in Mumbai, Bhattacharya emphasised on the role of a single window banking relationship support for new startups that SBI gives through its devoted branch in Bangalore. She added that the bank has on-boarded 200 customers in its last six months’ of operations.
“We would be looking at using the available financial technology platforms for cross selling of our banking products, while they might be competing with us on various sectors, on various other areas we can collaborate and help each other”, she added.
She also emphasised on the need for minimizing the cost of small transactions and smoother banking processes for a promising future of Fin-tech sector.