Indian startups have found a friend in Raghuram Rajan, Here’s why

While announcing the bi-monthly monetary policy, RBI Governor Raghuram Rajan had something for startups too.

In line with the ‘Startup India’ initiative, Rajan said the central bank will facilitate growth of startups and will take steps to ensure ease of doing business.

“We will announce some measures that will create a framework for receiving foreign venture capital, differing contractual structures embedded in investment instruments,” said Rajan.

The RBI statement read that deferring receipt of considerations for transfer of ownership, facilities for escrow arrangements and simplification of documentation and reporting procedures will also be taken into consideration.

The RBI stated that provisions will be made for foreign Venture Capital investment and transfer of VC.

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