PhonePe Launches Fixed Deposit Distribution With Banks, NBFCs

A key feature of the launch is the Daily RD (SIP) with Shivalik Small Finance Bank. Combining automated daily contributions with the structure of a bank deposit, the product is aimed at mainstream consumers, including millennials, Gen Z and underbanked users. Investments can range from Rs 100 to Rs 1,000 per day and are powered by UPI Autopay. Users can withdraw funds after seven days or stop the mandate at any time, with no penalties for missing contributions during a consecutive 15-day grace period.

Deep Agrawal, Vice President and Head of Payments at PhonePe, said the launch forms part of the company’s effort to improve access to financial services. “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,” he said.

To book an FD or Daily RD, users open the PhonePe app and select Fixed Deposits or Daily RD under the “Mutual Funds & Deposit” section on the home screen. They then choose a partner bank or NBFC from the aggregated dashboard, select the tenure (from seven days up to 10 years) and enter the investment amount. Digital identity verification is completed via PAN and Aadhaar, nominee details are added, and payment is made through PhonePe UPI or net banking. For the Daily RD, users authorise an automated UPI Autopay mandate.

The app allows flexible withdrawal of both FDs and Daily RDs at any time. By combining multi-partner FD distribution with a low-ticket daily savings product, PhonePe aims to make traditional deposit instruments more accessible through a fully digital, UPI-linked journey.