Are you a Google Pay user? Then here is a good news for you. Google has teamed up with fintech company Setu to let its users open fixed deposits (FDs) through Google Pay. According to Mint report, GooglePay is reportedly working on offering fixed deposits (FDs) on its platform with the help of a fintech startup Setu.
Notably, Setu is an application programming interface (API) infrastructure start-up, which offers APIs across bill payments, savings, credit, and payments.
Users will be able to open FDs through Google Pay or GPay even if they don’t have an account in the offering bank.
Initially, the digital payment platform GPay will offer FDs of small finance banks like Equitas Small Finance Bank. Ujjivan Small Finance Bank and AU Small Finance Bank, are also in the pipeline.
Aadhaar-based KYC (know your customer) will be mandatory for users to open the FDs, the report said.
The FDs will be offered for a period of one year, with a maximum interest rate of 6.35 percent.
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. The interest rates range from 3.5 percent for the shortest FD to 6.35 percent for the one-year FD.