Google will soon permit the users to open fixed deposits through its UPI payment service “Google Pay.” This might be the result of Google’s partnership with Indian Fintech Startup Setu.
Google Pay is one of the most used digital payment services in India and introducing a new feature will users to open fixed deposits from the app without visiting the banks.
The Mashable report says that Google Pay will allow opening fixed deposits of Equitas Small Finance Bank for only a year. Sooner, other banks including AU Small Finance Bank and Ujjivan Small Finance Bank are also expected to offer this facility. The maximum interest rate against fixed deposit is set at 6.35%.
In order to open the fixed account using the Google Pay application, you are required to sign up following Aadhaar-based KYC and enabled one-time-password (OTP).
About Fintech Startup Setu
Fintech Startup Setu is a type of application programming interface (API) start-up offering APIs to clients across savings, bill payments, credit, and payments. The company is already has developed a testing version that offers various tenors for FDs as per the report.
These include time periods ranging from 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days. If we talk about the interest rates offerings, the lowest rate of interest is 3.5 per cent for the shortest FD and 6.35 per cent for the annual FD.
However, Google India hasn’t confirmed this yet and there is still no launch date. Therefore, we will have to wait a while longer for the official announcement.