The above is news from today's Indian Express along with my no | ECONOMY by VIVEK SINGH

The above is news from today's Indian Express along with my note.

Startups operating in India have their parent (holding) company are based/registered in US and through this holding company startups have raised funds abroad/US in dollars and they had parked funds in US in SVB bank. Now as SVB bank has collapsed, so these holding companies can open account in the Indian Banks operating in GIFT-SEZ (IFSC) and can transfer the funds from SVB Bank to Accounts in IFSC and these deposits will be in dollars. [Indian companies/individuals cannot keep dollars in their deposits]

The Indian Banks which will be holding these deposits can invest these (dollar) funds in the External Commercial Borrowing (ECB). Let me explain.

When Indian companies borrow from abroad it is treated as ECB. But IFSC is treated as a foreign territory. So, now if Indian companies are borrowing from the banks having accounts in IFSC (holding startup deposits in dollars) then it will be treated as ECB.

The banks holding the deposits (dollars) in IFSC an also lend in forex market and oil companies for importing oil.