Google is working on offering FD to Indians via Google Pay
Google has partnered with Setu, a fintech that specializes in providing APIs to allow its users to book fixed deposits through Google Pay, a person with knowledge of the matter told Mint on condition of anonymity.
As part of the initial roll-out, Equitas Small Finance Bank FDs will be offered, up to a term of one year. The maximum interest rate is 6.35%. Users will need to complete an Aadhar-based KYC via one-time password (OTP). Setu has already created a beta version of the API that Mint has reviewed. A second person with knowledge of the subject confirmed the development.
“The beauty of the system is that you can book an Equitas FD on Google Pay, even if you don’t have a savings account in Equitas Small Finance Bank. The money will flow out of your existing account and return to 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 expand to other payment applications, ”said the aforementioned person.
“Although the focus is generally on mutual funds and stocks, it is the FDs that make up the largest component of savings in India. They are largely overlooked,” he added. The beta version of the API offers FDs of different durations including 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days as well as 365 days with interest rates ranging from 3.5% for the shortest FD to 6.35% for the 1-year 365-day FD.
According to media reports, Google Pay has 150 million monthly active users in India.
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