Google Pay users can take the benefits of fixed deposit rates offered by Equitas Small Finance Bank by booking FD on the payments platform without opening a bank account.
The bank said it has been offering this initiative by connecting APIs built by fintech infrastructure provider Setu for Equitas Bank.
In an industry-first, consumers can through the Google Pay app book high-interest rate FDs fully digitally, without needing to open a savings account with Equitas Bank on its spot integrated with the Google Pay platform, Equitas SFB said in a release.
The lender said that customers can earn returns of up to 6.35 per cent for an FD of one year, substantially higher than many other savings options.
As an RBI scheduled commercial bank, deposits in Equitas are covered by a deposit guarantee of up to Rs 5 lakh per depositor, it added.
To book an FD on Google Pay, the user will have to search for the Equitas Bank spot under the 'Business and bills' segment.
Further, they will have to select an amount and tenure for the fixed deposit, provide their personal and KYC (know your customer) details, and complete the payment using Google Pay UPI.
"On maturity, the proceeds will automatically go to the Google Pay user's existing Google Pay linked bank account," it said.
Users can track their deposits, add new ones and place an order for premature withdrawals.
In case, a user wants to prematurely withdraw the deposit, the proceeds will reach their bank account as quickly as the same day, Equitas Bank said.
To begin with, the Equitas Bank fixed deposit facility will be available for Google Pay users on the Android app.
As the bank is all set to celebrate its 5th anniversary on September 5, 2021, this collaboration is a dedication to the digital world, it said.
"Equitas has been one of the early adopters of digital banking and Neo banking in particular. This programme provides a true digital FD booking experience; we have made efforts to ensure that the experience is as simple and seamless as possible.
"We hope to increase the financial inclusion by encouraging a savings culture, at the same time making the FD booking process simple and easy," Murali Vaidyanathan, Senior President and Country Head, Equitas SFB said. Sahil Kini, CEO and Co-founder of Setu, said bank FDs are India's favourite savings instrument and booking an FD should be as simple as making a UPI payment.
"But, most banks require customers to open a savings account and then book an FD. By partnering with Setu, Equitas SFB has been able to make standalone FDs available on Google Pay," Kini said.