Equitas Small Finance Bank (SFB), on Wednesday, launched a new initiative, that will enable Google Pay users to open fixed deposits (FDs) on the digital payments app.
Google Pay users can book FDs "in under two minutes without having to open a bank account," Equitas said in a regulatory filing. Initially, the service will be available to Google Pay users who access the app from Android.
"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 added.
"As the Bank is all set to celebrate its 5th anniversary on September 5th, 2021, this collaboration is a dedication to the digital world, embracing the factor of providing customer comfort," it noted.
The bank further said the deposits in Equitas are covered by a deposit guarantee of up to Rs 5 lakh per depositor. Customers can enjoy returns of up to 6.35% for an FD of one year - substantially higher than many other savings options, it stated.
"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 own Spot integrated with the Google Pay platform. So, Google Pay users can book FDs from the comfort of their homes ensuring an easy, safe and hassle-free experience," the statement read.
"On maturity, principal and interest of the FD go directly to the Google Pay user's existing bank account - which could be in any bank in India," it further added.
How to book a high-interest safe FD with Equitas Bank:
1. Open your Google Pay app and scroll down to 'Businesses and bills'
2. Click on the 'Equitas SFB' logo / Search for Equitas to enter the Equitas Bank Spot on Google Pay
3. Select an amount and tenure for the FD via the Equitas Bank Spot
4. Provide your personal and KYC details (PAN number & Aadhaar number) to Equitas Bank
5. Complete the payment using Google Pay UPI
What after booking an FD?
On maturity, the proceeds will automatically go to the Google Pay user's existing Google Pay linked bank account. From the Equitas Bank Spot on the Google Pay platform, Google Pay users can track their deposit, add new ones as well as place order for premature withdrawal.
If a Google Pay user chooses to prematurely withdraw the deposit, the proceeds will reach their bank account as quickly as the same day.
Google had recently joined hands with fintech startup Setu to enable users to open FDs through Google Pay.
Speaking on this collaboration, Murali Vaidyanathan, Senior President and Country Head, Equitas SFB said, "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."
Sahil Kini, CEO & Co-founder of Setu, noted, "Bank FDs are India's favourite 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"
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