Google will very soon be allowing people to open fixed deposits (FDs) in India through its digital payments app Google Pay. This development is an outcome of Google’s recently announced partnership with Indian fintech startup, Setu. Google Pay will initially offer Equitas Small Finance Bank DFs to its users for up to one year. Later other banks such as AU Small Finance Bank and Ujjivan Small Finance Bank are expected to join the list.
The maximum interest rate is set at 6.35 percent. Users would be able to sign up through Aadhaar-based KYC which would be enabled by one-time password. The Fintech startup, Setu is an application programming interface (API). It offers API to customers on savings, credit and bill payments. The company has created a trial version on the platform offering deadlines for FD ranging from 7 to 29 days, 30 to 45 days, 46 to 90 days, 91 to 180 days, 181 to 364 days, and 365 days. The interest rates would range from 3.5 percent to 6.35 percent.