Google Pay users can take the benefits of fixed deposit rates offered by Equitas Small Finance Bank by booking FD on the payments platform without opening a bank account.
The bank said it introduced this initiative by linking APIs created by fintech infrastructure provider Setu to Equitas Bank.
With the Google Pay app, consumers can book high-interest FDs fully digitally, without the need to immediately open a savings account with Equitas Bank integrated with the Google Pay platform, Equitas SFB said in a statement.
The lender said clients can get returns of up to 6.35 percent on one-year FD, much higher than many other savings options.
As a registered commercial bank of the Reserve Bank of India, deposits at Equitas Small Finance Bank are covered by a deposit guarantee of up to Rs 5,00,000 per depositor.
To reserve an FD on Google Pay, the user will need to search the Equitas Bank website in the "Business and Billing" section.
In addition, they will need to select the amount and duration of the fixed deposit, provide their personal and KYC (Know Your Customer) details, and complete the payment using Google Pay UPI.
"When it expires, the proceeds will automatically go to the existing Google Pay user's linked Google Pay bank account," he said.
Users can keep track of their deposits, add new ones, and request an early withdrawal.
Equitas Bank said that in case a user wants to withdraw the deposit early, the earnings will reach their bank account as quickly as possible the same day.
First, Equitas Bank's fixed deposit service will be available to Google Pay users on the Android app.
As the bank prepares to celebrate its fifth anniversary on September 5, 2021, this collaboration is a dedication to the digital world.
"Equitas has been an early adopter of digital banking and new banking services in particular. This program provides a true FD digital reservation experience; we have made efforts to ensure that the experience is as simple and seamless as possible."
"We look forward to increasing financial inclusion by fostering a culture of savings, while at the same time making the FD booking process simple and easy," said Murali Vidyanathan, Equitas SFB Senior President and Country Director.
Sohail Kenny, CEO and Co-Founder of Setu, said that bank FDs are the preferred savings tool in India, and reserving an FD should be as simple as making a UPI payment.
"But most banks require customers to open a savings account and then reserve FD. By partnering with Setu, Equitas SFB has been able to make standalone FD files available on Google Pay," said Kenny.
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