Google Pay launches digital FD; Here's how to use the feature.

ISN Webteam
02 Sep 2021
Google Pay launches digital FD; Here's how to use the feature.

Image Courtesy - Matthew Kwong/Unsplash

Equitas Small Finance Bank (SFB) today said it has partnered with Google Pay to enable Google Pay users to book fixed deposits (FDs) without having or opening a savings account in its bank. The service was made feasible by linking financial infrastructure provider Setu's application programming interfaces (APIs).

Initially, the newly launched feature will be available only to Google Pay users who use the app from an Android device, the release said.

“Equitas SFB has launched a new initiative, enabling Google Pay users to book fixed deposits (FDs) on Google Pay in under 2 minutes without having to open a bank account," the bank said in a regulatory filing.

Equitas deposits are covered by a deposit guarantee of up to Rs 5 lakh per depositor, according to the bank. Customers can earn up to 6.35% on a one-year FD, which is significantly more than many other savings choices.

Speaking on this collaboration, Murali Vaidyanathan, Senior President and Country Head, Equitas SFB said, “Equitas has been one of the early adopters of Digital Banking and Neo banking in particular. This program provides a true digital FD booking experience; we have made efforts to ensure that the experience is as simple and seamless as possible. With a strong Fintech partner in the form of Setu we are happy to launch this innovation on Google Pay."

"We hope to increase the financial inclusion by encouraging a savings culture, at the same time making the FD booking process simple and easy," he added.

It's worth mentioning that Equitas SFB has now expanded its digital banking product line to include digital banking. Fintech partners provide FDs. On the Digital Savings Account, the lender has opened two Neo banks, one of which is the fastest-growing Neo bank in the country. This digital FD product uses the Google Pay platform to provide customers with a completely new digital banking experience.

Sahil Kini, CEO & Co-founder of Setu, said, “Bank FDs are India's favorite savings instrument. 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. This enables a seamless, fully digital FD booking experience regardless of where the customer has a savings account”

How to book Digital FD using Google Pay with Equitas Bank:

Step 1: Open your Google Pay app and scroll down to ‘Businesses and bills’

Step 2: Click on the ‘Equitas SFB’ logo / Search for Equitas to enter the Equitas Bank Spot on Google Pay

Step 3: Select an amount and tenure for the FD via the Equitas Bank Spot

Step 4: Provide your personal and KYC details (PAN number & Aadhaar number) to Equitas Bank

Step 5: Complete the payment using Google Pay UPI

The proceeds will be automatically sent to the Google Pay user's current Google Pay connected bank account upon maturity. Google Pay customers can track their deposits, add new ones, and place orders for premature withdrawal from the Equitas Bank Spot on the Google Pay platform.

If a Google Pay user chooses to withdraw the funds before the deposit expires, the funds may arrive in their bank account the same day.

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