Google Pay users can book fixed deposits online, know full details
By Lokmat English Desk | Published: August 26, 2021 06:49 PM2021-08-26T18:49:57+5:302021-08-26T18:49:57+5:30
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Google Pay users will be able to book fixed deposits (FDs) online through its fintech partner. According to a report in Mint, Google has teamed up with Setu, a fintech specialising in providing application programming interfaces (APIs), to allow its users to book FDs through Google Pay.
To start with, Google Pay users can book FDs of Equitas Small Finance Bank for up to one year tenure. The maximum interest rate that they will get is 6.35%. However, those who want to avail of this facility will have to complete an Aadhaar-based KYC (know your customer) through a one-time password (OTP).
According to the report, Mint has reviewed the beta version of the API, which Setu has already created.
“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," Mint quoted an unnamed person as saying. “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.
The beta version of the API offers FDs of various tenors including 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days, with interest rates ranging from 3.5% for the shortest FD to 6.35% for the one-year FD, the publication mentioned adding that Google Pay has 150 million monthly active users in India.
As a recent trend, small finance banks are partnering with fintechs to offer high-interest savings accounts and fixed deposits.
Recently, Equitas Small Finance Bank partnered with fintechs such as NiYO and Freo (Moneytap) to offer its savings accounts with interest rates of 7% for balances more than Rs 1 lakh.
Those who want to avail of this facility will have to complete an Aadhaar-based KYC
