Google Pay to allow Indian users to open fixed deposits directly from the app

Google will soon allow users in India to open fixed deposits (FDs) through its Google Pay digital payments app. This comes as part of Google's recently announced partnership with Indian fintech startup Setu. The development, first reported by Mashable, hints that Google Pay will initially offer Equitas Small Finance Bank DFs to its users for up to one year. Later on, other banks such as Ujjivan Small Finance Bank and AU Small Finance Bank are also expected to join the list soon.

The maximum interest rate is reportedly set at 6.35 percent and users should sign up following an Aadhaar-based KYC (know your customer) process, enabled via a one-time password (OTP). The Fintech startup setu is an application programming interface (API) startup. Offers API to customers on bill payments, savings, credit, and payments. According to the Mashable report, the company has already created a trial version on the platform that offers various deadlines for FD. These include time periods 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, with interest rates ranging from 3.5 percent to the Shorter FD at 6.35 percent. for the annual DF.

Google India has yet to confirm the development and there is no release date for the new feature. Google Pay is a popular platform for digital payments in the country. The application has more than 10 million downloads on the Google Play Store in India.