Google will soon allow users in India to open fixed deposits (FDs) through its digital payments app Google Pay. This comes as part of the recently-announced partnership of Google with Indian fintech startup Setu. The development, first reported by Mashable, hints that Google Pay will initially offer its user’s FDs of Equitas Small Finance Bank for up to one year. Later on, other banks like Ujjivan Small Finance Bank and AU Small Finance Bank are also expected to join the list soon.
The maximum interest rate is reportedly set at 6.35 percent and users would be required to sign up following an Aadhaar-based KYC (know your customer) process, enabled through a one-time password (OTP). Fintech startup Setu is an application programming interface (API) start-up. It offers APIs to clients across bill payments, savings, credit, and payments. According to the Mashable report, the company has already created a testing version on the platform that offers various tenors for FDs. These include time periods ranging from 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days, with interest rates that scale from 3.5 percent for the shortest FD to 6.35 percent for the annual FD.
Google India has not confirmed the development yet and there is no launch date for the new feature. Google Pay is a popular platform for digital payments in the country. The app has over 10 crore downloads on the Google Play Store in India.
(With inputs from ANI)
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