Here's a treat for startups registered in India. The State Bank of India (SBI), which is popularly known as the country's largest public sector lender, has announced a fund especially dedicated to IT innovations and startups. The SBI has set aside Rs 200 crore in the fund for investment in Indian startups that are promising and have huge potential to be successful someday.

The SBI would be providing a sum of maximum Rs. 3 crore for any company which is registered in India for the purpose of promoting their business in the country by making use of information technology (IT) for banking. In addition to the money, the startups would also be provided with legal assistance as and when they require.

Speaking about the fund, Arundhati Bhattacharya, chairman of SBI said, "We have created an entity to promote and ensure usage of the funds for the right purposes, the entity could have one or more technical experts on board for advisory roles. The team would provide legal and financial assistance to startups as and when required." Bhattacharya gave the statement at a Confederation of Indian Industry event in the city of dreams, Mumbai.

She enthusiastically also talked about a SBI branch in the Bangaluru city which is providing a single window banking relationship support to startups and how it has become a huge hit among the startup community there. According to her, the branch has been successful in adding more than 200 clients since the last six months that it started its operations.

Bhattacharya also spoke about the important role that the nimble financial tech startups can play in adding value to the banking services that the modern customers want in today's time and how the banking sector's future success is dependent on their collaboration rather than their competition.

According to Bhattacharya, the SBI is currently considering using the available financial technology platforms for the purpose of cross selling their banking products. She said, " While they might be competing with us on various sectors, on various other areas we can collaborate and help each other."

Bhattacharya also had an advice to give to the fin-tech startup industry during her address at the Mumbai event. According to her, the future success of the industry is dependent on its ability to minimize the cost of small transactions and making banking experience  smoother by removing unnecessary processes.
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