Google has entered into collaboration with Setu, a fintech enterprise that specializes in offering application programming interfaces (APIs) for allowing its users to open fixed deposits via G-Pay.
As part of the initial offering, Equitas Small Finance Bank will be offered for a maximum period of 1 year. The interest rate on the deposit shall be maximum 6.35%. For completing the KYC and verification process, an Aadhaar-based KYC shall be done by providing the one-time password.
"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 person with knowledge on the development. "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 providess 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. According to media reports, Google Pay has 150 million monthly active users in India.