Mumbai, India—The country’s largest lender, the State Bank of India (SBI) is looking to modify rules in order to jumpstart investments in fintech startups, a top official revealed.
“We are a public institution and investments in start-ups are generally considered very risky. We understand that traditional way of investing will not work,” chairman Rajnish Kumar said.
Kumar added that the bank, which has earmarked Rs 50 crore ($7,454,840.00USD) for fintech startups investment, will be modifying the rules so as to plough-in the money.
“We want to spend the money which we have earmarked,” Kumar emphasized, saying that it wants to create more companies similar to online retailer Flipkart and ride-sharing app Ola.
According to Kumar, SBI has a board-approved policy, which encourages it to support the fintech sector.
SBI has been able to make progress on two similar aspects of fintech activities, including securing goods from such startups as well as playing an active role in the industry via collaborations.