Digital wallet platform Google Pay is reportedly planning to allow Indian users to open fixed deposits. This move comes along the heels of Google’s latest collaboration with Indian fintech company Setu.

Google Pay is one of the most used digital payment platforms in India and the inclusion of the new feature will enable users to open fixed deposits via the app, minimizing the need to visit banks.

The platform will initially let users open FDs from Equitas Small Finance Bank for a period of one year. Other banks such as AU Small Finance Bank as well as Ujjivan Small Finance Bank will soon be included in the list. The interest rate is apparently set at 6.35%. Interested users would be required to sign up, following the process of Aadhaar-based KYC (know your customer), which will be activated through an OTP (one-time-password).

Fintech firm Setu is an API (application programming interface) startup that provides clients with APIs across savings, bill payments, payments, and credit. The company has supposedly developed a beta version on the platform that provides different tenures for fixed deposits.

These comprise time periods ranging from 7-29 days, 46-90 days, 30-45 days, 181-364 days, 91-180 days, and 365 days. In terms of interest rates, the shortest FD is offered a 3.5% interest whereas an annual FD is offered a 6.35% interest.

However, Google India is yet to affirm this move and there is no formal announcement of a launch date.

For the record, Google Pay is an online payment system and digital wallet platform to perform online, in-app as well as in-person contactless purchases on mobile phones. This allows users to make payments with their Android tablets, smartwatches, or phones.

Users in India and the United States can also use an iOS device, although with limited features. Apart from this, the service also offers passes like boarding passes, coupons, car keys, campus ID cards, movie tickets among others.

Source credits:

https://www.crn.in/news/google-pay-may-allow-users-to-open-fixed-deposits-soon-suggests-report/