Google has partnered with fintech company Setu to let its users open fixed deposits (FDs) through Google Pay.
Initially, FDs of Equitas Small Finance Bank will be offered for a period of one year, with a maximum interest rate of 6.35 percent.
Aadhaar-based KYC (know your customer) will be mandatory for users to open the FDs, the report said.
Moneycontrol could not independently verify the story.
“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.
Setu has already created a beta version for the application programming interface (API), the report said.
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 shortest FD to 6.35 percent for the one-year FD.