Equitas Small Finance Bank launched Digital FDs

WHY IN THE NEWS?

Equitas Small Finance Bank (SFB) has launched a new initiative that enables Google Pay users to book fixed deposits (FDs) on Google Pay in just 2 minutes without opening a bank account.

About:

• This functionality of booking FDs will be available for Google Pay users who are using the app from Android devices.
• Collaboration between SFB and google way was done ahead of the SFB’s 5th anniversary on September 5th, 2021.
• Under this functionality, principal and interest of the FD will go directly to the Google Pay user’s existing bank account once the FDs are matured.

Equitas SFB’s FD

Equitas SFB’s offers high FD returns as compared to other private lenders or public state lenders. Under RBI Scheduled Commercial Bank, deposits in Equitas are covered through a deposit guarantee up to Rs 5 lakhs per depositor. Customers get returns of up to 6.35% for an FD of one year.

How this will work?

The proceeds will automatically go to Google Pay user’s existing Google Pay linked bank account, on maturity. From the Equitas Bank Spot on Google Pay platform, Google Pay users can track their deposit, add new ones and place order for premature withdrawal.

What will happen on Premature withdrawal?

If a Google Pay user go for premature withdrawal of deposits, proceeds will reach their bank account the same day.

Equitas small finance Bank FD

This small finance bank was founded in 2016 as a microfinance lender. It became a scheduled bank in 2017. It is headquartered in Chennai, and is a subsidiary of holding company Equitas Holdings Ltd.