New Delhi, August 6: Digital payment and fintech platform PhonePe announced the launch of its Fixed Deposit (FD) distribution service on Thursday. Users can now compare and invest in FDs from major banks and NBFCs directly through the app.
In partnership with Shivalik Small Finance Bank, the company also introduced a new digital micro-savings product called Daily Recurring Deposit (Daily RD). Customers can start saving with as little as ₹100 per day.
According to PhonePe, the entire process of opening an FD will now be fully digital. Users can compare FD options from various banks and NBFCs on the app and invest instantly based on their preferences. Deposits booked with partner banks will be insured up to ₹5 lakh under the Deposit Insurance and Credit Guarantee Corporation, as per Reserve Bank of India (RBI) guidelines.
This feature will allow customers to manage FDs across different banks within a single app seamlessly. The Daily RD is specifically designed for small investors, youth, millennials, Gen Z, and those less connected to traditional banking services. Investments can range from ₹100 to ₹1,000 per day, and the service operates on UPI Autopay, ensuring automatic investments.
Investors will have the option to withdraw funds just seven days after investing. Additionally, there will be no penalties for investors who miss contributions for up to 15 days, and they can cancel the autopay mandate at any time.
Deep Aggarwal, Vice President and Head of Payments at PhonePe, stated that the company’s goal is to ensure easy access to financial services for every Indian. The launch of FD distribution and Daily RD is a significant step in this direction. He emphasized that fixed deposits have been a trusted savings method for Indian families, and digitizing this service will make it accessible to more people across the country.
Customers can choose the FD or Daily RD option from the “Mutual Funds and Deposits” section on the PhonePe app’s home screen. They can then select a partner bank or NBFC and book an FD for a duration ranging from 7 days to 10 years. Digital verification through PAN and Aadhaar, adding nominees, and payment via PhonePe UPI or net banking will be available for investments. For Daily RD, UPI RD mandates will need to be authorized.
According to the company, funds invested through FDs and Daily RDs via the PhonePe app can be withdrawn at any time when needed.
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