Google has collaborated with a fintech company, Setu that specialises in providing application programming interfaces (APIs), to allow its users to book fixed deposits (FDs) through Google Pay.
In its opening implementation, Equitas Small Finance Bank FDs will be offered for up to period of one year with the maximum interest rate is 6.35 per cent.
According a report by Mint imformed that the users will have to complete an Aadhaar-based KYC (know your customer) through an OTP (one-time password).
As per the report, Setu has already created a beta version for the API.
An anonymous source with the knowledge of the subject told Mint, “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 source also said that the money will flow out of the existing account and back into the existing savings account.
He further added, "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."
The beta version for the API offers FDs of several tenors which includes 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days and 365 days with the interest rates starting from 3.5 per cent for the shortest FD to 6.35 per cent for the 365 days FD.
As per to the reports, there are150 million monthly active users og Google Pay in the country.