The swift collapse of Silicon Valley Bank has cast an aspiring Indian finance center into sudden relief.
India, which has long been a bit player in global finance, has a chance to boost its role—but only if it moves swiftly to rectify some regulatory barriers.
This week, many Indian startups rushed to open new bank accounts in India’s Gujarat International Finance Tec-City, known as GIFT city, once they regained access to their SVB deposits.
Accounts set up within the hub’s International Financial Services Center, or IFSC, are free of India’s stringent capital controls since the funds are held in U.S. dollars.
And at a time when U.S. banks are under pressure, accounts in GIFT city remain within the safety net of capital adequacy norms prescribed by the Reserve Bank of India.
Read more: https://www.wsj.com/articles/svb-crisis-tests-indias-new-finance-hub-potential-6d4dbae8