Users will be able to open FDs through Google Pay or GPay even if they don’t have an account in the offering bank.
Google has teamed up with Setu, a fintech specializing in providing application programming interfaces (APIs), to allow its users to book fixed deposits (FDs) through Google Pay, a person with knowledge of the matter said on the condition of anonymity.
In the initial roll-out, FDs of Equitas Small Finance Bank will be offered for up to one year. The maximum interest rate is 6.35%. Users will have to complete an Aadhaar-based KYC (know your customer) through a one-time password (OTP).
A second person with knowledge of the matter confirmed the development.
“The beauty of the system is that you can book an Equitas FD on Google Pay even if you do not have a savings account in Equitas Small Finance Bank. The money will flow out of your existing account and back into your existing savings account. Other banks, including Ujjivan Small Finance Bank and AU Small Finance Bank, are also in the pipeline. If successful, the system will also be extended to other payment apps,” said the second person. “While attention is usually focused on mutual funds and stocks, FDs are the largest component of savings in India. They are largely overlooked,” he said.
