SBI to modify rules for investing in fintech startups

New Delhi, June 5 (KNN) With more risk involved in injecting the funds in fintech startups, the country’s largest lender SBI is planning to modify rules to kick-start the infusion process in those start-up firms, said Rajnish Kumar, State Bank India (SBI) Chairman at an event in the national capital.

Despite, earmarking funds for the startups, SBI has not been able to invest in fintech startups, he said.

He said the bank, which has earmarked Rs 50 crore to invest in fintech startups, will be modifying the rules in order to plough-in the money.

Talking more about it in detail, Kumar said, “We are a public institution and investments in startups are generally considered very risky. We understand that traditional way of investing will not work.”

Stressing on the keenness to spend the money earmarked for the sector, Kumar added that it is keen to create more companies like online retailer Flipkart and ride sharing app Ola, which define the country’s prowess.

He said SBI has a board-approved policy to support the fintech sector, which has passed the necessary oversight bodies like Central Vigilance Commission.

Highlighting other aspects, he said the bank has been able to make progress on two other aspects of the fintech engagements, including procuring goods from such startups and also playing an active role with the ecosystem through collaborations.

Further, bank is also planning to invest Rs 25 crore to set up a collaborative innovation centre in the satellite city of Navi Mumbai to promote latest technologies, he added.

With 430 million customers on the board, the bank has worked with over 150 startups till now on various cutting edge technologies including chatbot, data analytics, etc, according to him.

The lender has held five editions of hackathons to collaborate and search for the best solutions, Kumar said. At present, the entire bank runs from its global technology centre at Belapur in Navi Mumbai.