The company said it had partnered with two non-banking financial companies (NBFCs), Shriram Finance and Bajaj Finance, along with five banks
The fintech firm said users can deposit FDs starting from Rs 1,000, with access to multiple partner institutions without opening separate savings accounts with each.
Amazon Pay, the fintech arm of the e-commerce major, is scaling up its fixed income asset business with the rollout of fixed deposits for its users through the fintech application.
The company said it had partnered with two non-banking financial companies (NBFCs), Shriram Finance and Bajaj Finance, along with five banks.
The partnership for fixed deposits includes banks such as Shivalik Small Finance Bank, Suryoday Small Finance Bank, South Indian Bank, Slice, and Utkarsh Small Finance Bank.
The fintech firm said users can deposit FDs starting from Rs 1,000, with access to multiple partner institutions without opening separate savings accounts with each.
“Fixed income instruments remain hugely popular in India given their simple construct, guaranteed returns, and low risk profile,” said Vikas Bansal, chief executive officer (CEO), Amazon Pay.
Deposits made through the app with the company’s partner banks are insured up to Rs 5 lakh per depositor per bank, as per Deposit Insurance and Credit Guarantee Corporation (DICGC) norms.
“Partner institutions offer interest rates up to 8 per cent a year, with all partners providing an additional 0.5 per cent interest for senior citizens. Shriram Finance extends up to 0.5 per cent additional interest for women investors,” the company said in a statement.
The focus on fixed income assets comes at a time when several fintechs have tied up with banks and NBFCs, positioning themselves as origination points for fixed deposit mobilisation.
Fintechs act as distribution partners for banks, enabling them to shore up deposits, for which they take a cut.
Compared to lending, take rates on fixed deposits can be modest, depending on arrangements with banks, which factor in variables such as deposit size and tenure.
Many firms such as Stable Money, Super.money, MobiKwik, among others, have partnered with regulated entities to extend the offering in the past.
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