PhonePe launches fixed deposit distribution in partnership with leading banks, NBFCs

New Delhi: PhonePe on Thursday announced the official launch of Fixed Deposit (FD) Distribution on its platform, partnering with prominent banks and NBFCs.

Expanding its comprehensive financial services suite, PhonePe in partnership with Shivalik Small Finance Bank has also introduced an innovative, first-of-its-kind digital micro-savings product — the Daily Recurring Deposit (SIP). This offering enables users to build a disciplined savings habit with investments starting at just Rs 100 per day.

The launch enables opening FDs directly within the PhonePe app, designed to act as a stable, low-risk savings option. Users can seamlessly discover, compare, and instantly book FDs from trusted partners. FDs booked with the partner banks are insured up to Rs 5 Lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC), as per Reserve Bank of India (RBI) guidelines.

Additionally, it enables users to invest across multiple banks and facilitates seamless management of all their FDs within the PhonePe app.

A key highlight of the announcement is the introduction of the Daily RD (SIP), launched in strategic partnership with Shivalik Small Finance Bank. Combining the flexible, automated habit of a daily SIP with the security and familiarity of a bank deposit, the Daily RD allows mainstream consumers, Millennials, Gen Z, and underbanked populations to automate small-ticket investments ranging from Rs 100 to Rs 1,000 per day. Backed by the simplicity and scale of UPI Autopay, this micro-saving mechanism offers instant liquidity, allowing users to withdraw funds after just 7 days or stop the mandate anytime with no penalties on missing investments during a consecutive 15-day grace period.

Speaking on the launch, Deep Agrawal, VP and Head of Payments at PhonePe said, “At PhonePe, our vision is to empower every Indian to accelerate their financial progress by unlocking seamless access to financial services. The launch of our fixed deposit distribution, along with the Daily RD product, marks a significant milestone in that direction. Fixed Deposits remain a cornerstone of Indian household savings, offering guaranteed returns. By turning a traditionally offline process into a seamless, 100 per cent digital journey, with the ability to interoperably invest using any bank account on the UPI rails, we are making these savings instruments accessible to the heart of Bharat with absolute confidence, capital safety, and convenience.”

PhonePe users can access and book fixed deposits on the PhonePe app via opening the PhonePe app and tapping Fixed Deposits or Daily RD under the “Mutual Funds & Deposit” section on the home screen. After that select the preferred partner bank or NBFC from the aggregated dashboard. Then, select the tenure (7 days up to 10 years) and enter the investment amount.

Users now have to perform instantaneous digital identity verification via PAN and Aadhaar. Now, add nominee details and complete the secure payment via PhonePe UPI or Netbanking to book the deposit instantly. For Daily RD, authorise the automated UPI Autopay mandate.

The PhonePe app offers flexibility to withdraw FDs and Daily RDs seamlessly at any time of the day.