New Delhi: Digital payment platform PhonePe has introduced a new feature allowing users to invest in Fixed Deposits and Daily Recurring Deposits directly through its mobile application. The initiative aims to simplify savings by eliminating the need to visit physical bank branches, offering daily investment options that begin at just Rs 100.
Traditionally, securing a fixed or recurring deposit involved extensive paperwork and branch visits. PhonePe intends to change this by bringing these traditional savings tools to the smartphone ecosystem. For the daily recurring deposit facility, the company has partnered with Shivalik Small Finance Bank. This feature specifically targets retail users aiming to cultivate a consistent saving habit, allowing daily contributions ranging from Rs 100 to Rs 1,000.
The entire investment process on the platform is completely digital and paperless. Customers can navigate to the Mutual Funds and Deposits section within the app to explore various offerings. The interface allows users to compare interest rates, investment tenures, and policies across multiple banks and Non Banking Financial Companies. After completing a quick digital verification process using their Aadhaar and PAN credentials, investors can execute payments seamlessly via UPI or net banking.
For the daily recurring deposit, PhonePe utilizes the UPI AutoPay feature, which automatically deducts the designated amount every day. This eliminates the hassle of manual payments. The platform also offers significant flexibility for the investors. Users can cancel the AutoPay mandate at any given time without facing restrictions. Moreover, if an investor faces a sudden cash requirement, the funds can be withdrawn just seven days after the initial investment.
To ensure a smooth experience, the company does not levy any penalty charges on missed daily installments. Instead, users are granted a generous grace period of 15 days to regularize their payments. Security is another key focus area, as deposits placed with partner banks are covered by an insurance of up to Rs 5 lakh under the regulations of the Deposit Insurance and Credit Guarantee Corporation.
By integrating regulated banking products into an accessible digital payment platform, PhonePe is bridging the gap between traditional banking and modern digital convenience. This unified dashboard approach makes managing multiple deposits effortless, though financial experts continue to advise users to carefully assess the terms and interest rates offered by different partner institutions before making financial commitments.