Google has tied up with Setu, a fintech startup, to enable its customers to book fixed deposits (FDs) through Google Pay, as per the report published by The Mint.
Setu is a Bengaluru based fintech startup that specialised in providing APIs for payments, lending, fixed deposits, Whatsapp, and data sharing.
In the starting, FDs of Equitas Small Finance Bank with a maximum interest rate of 6.35 per cent for one year will be offered.
Aadhaar-based KYC (know your customer) is mandatory to avail of the services, mentioned in the report.
“The beauty of the system is that you can book an Equitas FD on Google Pay even if you do not have a savings account in Equitas Small Finance Bank. The money will flow out of your existing account and back into your existing savings account. Other banks, including Ujjivan Small Finance Bank and AU Small Finance Bank, are also in the pipeline. If successful, the system will also be extended to other payment apps,” another source told the publication.’
“While attention is usually focused on mutual funds and stocks, FDs are the largest component of savings in India. They are largely overlooked,” the person added.
Setu already had a beta version for the application programming interface (API) and it offers FDs ranging from 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, to 365 days. The interest rates for the minimum period of deposit would be 3.5 per cent while 6.35 percent returns can be fetched from the one-year FD.