Good news for Google Pay users! Now you can open Fixed Deposit on GPay
Are you a Google Pay user? Then there is a good news for you. Google has teamed up with fintech company Setu to allow its users to open fixed deposits (FDs) through Google Pay. As per a Mint report, GooglePay is reportedly working on offering fixed deposits (FDs) on its platform with the help of Setu, a fintech startup.
Specifically, Setu is an Application Programming Interface (API) infrastructure start-up, which provides APIs in bill payment, savings, credit and payments.
Users will be able to open an FD through Google Pay or GPay even if they do not have an account with the offering bank.
Initially, digital payments platform GPay will offer FDs from small finance banks like Equitas Small Finance Bank. Ujjivan Small Finance Bank and AU Small Finance Bank are also in the pipeline.
The report said that Aadhaar based KYC (Know Your Customer) will be mandatory for opening FDs.
The FD will be given for a tenor 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 smallest FD to 6.35 percent for the one-year FD.
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