Kotak Mahindra Bank and DPIIT Sign MoU to Support Startups Across India

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has signed a Memorandum of Understanding (MoU) with Kotak Mahindra Bank Ltd. The agreement focuses on improving financial and non-financial assistance for startups recognised by DPIIT across India.

Scope of the Agreement

The partnership is to make it easier for startups to access basic banking services, credit, and digital tools. It also includes non-financial support such as advisory, mentorship, and capacity-building programmes. The initiative is part of the government’s plans to build a more organised framework for startups to manage their operations and growth.

Banking Services Offered

As part of the MoU, Kotak Mahindra Bank will provide several services to DPIIT-registered startups. These include zero-balance current accounts, working capital and term loans, API-based banking platforms, and digital payment options. The bank will also extend startup cards, investment-related advisory, and incubation support.

Statements from DPIIT and the Bank

According to the Joint Secretary at DPIIT, Sanjiv, the agreement is meant to streamline access to resources that startups need at different stages of development. Raghavendra Singh, President of Kotak Mahindra Bank, said that the bank will work towards improving access to financial and digital infrastructure for startups across sectors.

Current Startup Landscape

India currently has more than 1.5 lakh DPIIT-recognised startups, covering sectors such as technology, healthcare, manufacturing, and services. Many of these startups face difficulties in accessing formal financial systems and credit support. The MoU aims to address some of these gaps through structured financial and advisory assistance.

Read More: Department of Post Employees to Receive 60-Day Productivity Linked Bonus Ahead of Diwali!

Conclusion

The DPIIT-Kotak Mahindra Bank MoU sets up a framework for startups to access banking, funding, and operational support more efficiently. It focuses on improving financial accessibility and providing guidance to help startups run their operations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.