SBI to modify rules for fintech startups

Vastavam web: Country’s largest lender SBI, which has not been able to invest in fintech startups despite earmarking funds, is now looking to modify rules to kickstart the infusion, a top official has 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,” chairman Rajnish Kumar told on the sidelines of an event here over the weekend.

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

Kumar said the 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. The lender has held five editions of hackathons to collaborate and search for the best solutions, Kumar said.