Amazon debuts as platform for taking deposits, After Google Pay

RBI has been wary of allowing tech giants in the banking space

Tapping into any kind of distribution channel is not illegal and experts say Google and Amazon can boost the financial inclusion drive way beyond what the banks could do

On the heels of offering its platform for booking fixed deposits, Pay on Wednesday also tied up for a similar arrangement with a wealth management platform. said it would provide “its services, products and technology know how to create an exclusive experience for Pay’s users to facilitate investments into mutual funds, fixed deposits, and more over time”.

On its website, Kuvera listed three deposit buckets by Bajaj Finance. The site mentioned deposits for 12-23 months, 24-35 months, and 36-60 months, offering interest rates of 5.75 per cent, 6.20 per cent, and 6.60 per cent, respectively.

The minimum deposit size for each is Rs 25,000.

In a statement issued by Kuvera, Pay Director Vikas Bansal said the deposit offer would help its customers meet their “large need” of growing wealth and investment. The partnership will democratise Kuvera’s investing and wealth management in India, said Gaurav Rastogi, founder and chief executive officer of the platform.

However, the association may make the banking regulator even more jittery, now that it has two tech giants to tackle in the deposit mobilisation space.

Sources say the Reserve Bank of India (RBI) is uncomfortable with the idea that tech giants can get linked with retail deposits, a tightly regulated and sensitive area for the banking regulator.

source: Business Standard 

Post a Comment