Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
RBL, formerly known as Ratnakar Bank, recently announced the launch of an exclusive branch for the startups in Bangalore. With this, the team aims to assist the entrepreneurs in setting new companies and help them in understanding tax and legal compliance through partners. Also, they would be provided with banking products including foreign exchange services, remittances, cash management, and others.
The branch was inaugurated by Nandan Nilekani, former chairman of Unique Identification Authority of India. As per Rajeev Ahuja, Head – Strategy, this is not merely a branch where a startup entrepreneur will walk up and ask for a current account or a remittance.
“We expect to have conversations about Application Program Interface (API) banking, large volume electronic payments ( IMPS/NEFT/RTGS) and receivables, prepaid cards-based solutions, escrow services, Universal Payment Interface (UPI), Aadhaar Enabled Payment System (AEPS), Direct Money Transfer (DMT) and so on.”
Earlier this year, RBL Bank had launched “India StartUp Club,” an initiative to support early stage companies providing a large number of banking services. This includes Green Channel for Account Setup, Payroll Services, Cash Management, trade and foreign exchange service, escrow accounts, transaction banking solutions (API banking for managing various payment/receivable needs), Customised Debit Cards and a dedicated hotline to address the 24×7 needs.
In support to PM Narendra Modi’s Startup Action Plan, which was launched in January, 2016, there are other banks too which have taken the similar action. Earlier in January this year, SBI opened its first exclusive branch for startups, SBI InCube in Bangalore. The bank is also looking forward to set up a small fund to invest in startups.
Last week, Federal Bank opened its second exclusive startups “Launchpad” in bengaluru. “‘Launchpad’ is a one stop facility providing a range of advisory services in addition to customised banking offerings to budding entrepreneurs who wish to set up startup ventures,” the bank said in a statement. Also, it has set up an INR 25 Cr. fund to invest in startups. ICICI Bank has also shown an interest in creating startup fund for financial technology startups.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.