New Delhi: Google Pay users can now enjoy the benefits of fixed deposit rates offered by Equitas Small Finance Bank by booking FD on the payment platform without opening a bank account.
The bank launched this initiative by connecting APIs built by fintech infrastructure provider Setu for Equitas Bank.
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Equitas SFB in a statement said that consumers can, via the Google Pay app, reserve high interest FDs completely digitally, without the need to open a savings account with Equitas Bank on site integrated with the Google Pay platform.
Customers can get returns of up to 6.35% for a one-year FD, the lender said, adding that’s significantly higher than many other savings options.
The lender said deposits with Equitas, as a regular commercial bank of the Reserve Bank of India (RBI), are backed by a deposit guarantee of up to Rs 5 lakh per depositor.
Users will need to look for the Equitas Bank spot in the “Businesses and Bills” segment to book an FD on Google Pay.
Users will need to select an amount and term for the fixed deposit, provide their personal and KYC (know your customer) information, and make payment using Google Pay UPI.
“At maturity, the proceeds will automatically go to the Google Pay user’s existing Google Pay-linked bank account,” the lender said.
Users can track their deposits, add new ones, and place an order for early withdrawals. If a user wishes to withdraw the deposit prematurely, the proceeds will reach their bank account as quickly as the same day.
The fixed deposit facility will be available for Google Pay users on the Android app.
The lender said the collaboration is a dedication to the digital world, as the bank is set to celebrate its fifth anniversary on September 5.
“We hope to increase financial inclusion by encouraging a culture of savings, while making the FD booking process simple and easy,” said PTI quoting Murali Vaidyanathan, Senior President and Country Head, Equitas SFB.
CEO and co-founder of Setu, Sahil Kini, said bank FDs are India’s preferred savings instrument and added that booking an FD should be as easy as making a payment UPI.
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“But, most banks require customers to open a savings account and then reserve an FD. By partnering with Setu, Equitas SFB was able to make standalone FDs available on Google Pay,” he said.
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