A $30 million fund for fintech has been created by the State Bank of India to help start-ups in the finance sector.

According to multiple reports, the government-controlled State Bank of India (SBI) has created a $30 million fund for start-ups in the finance space, as announced last week in Mumbai.

It is not only the fintechs that are coming into banking, but banking can also benefit from fintech,” said SBI chairman Arundhati Bhattacharaya.

“This fund shall consider assistance of up to Rs 3 crore to an Indian registered company for promoting their business innovations using IT.”

The idea to financial support start-ups rather than innovate in-house, is surprising one, given that banks across the globe are struggling to internally innovate at a pace that will keep them ahead of the wave of digital disruption. According to Bhattacharaya, the aim is not to compete with fintechs, but to set up an early relationship that, once established, will benefit both companies who can continue to work to their individual and prescribed strengths.

“There may be one or two areas where they can give us competition, but overall, there could be several areas where they can help cross-sell banks’ products,” said Bhattacharaya.

In joining the growing list of government-operated entities embracing the power of fintech, SBI has secured itself in a new position fostering competition between entrepreneurs and establish systems.

The continuation of this patterns could soon see India benefitting from following the UK, Australia and Singapore in the establishment of a regulatory sandbox.