Why RBI is concerned about Equitas SFB's new scheme for Google Pay users

The RBI is weighing carefully if this could eventually lead to a backdoor entry of Big Tech in the Indian banking system

Last week, Equitas Small Finance Bank (SFB) launched a unique fixed deposit scheme that can be booked through the Google Pay app in an instant, much like buying a shirt from an online marketplace. It is a welcome product in a world moving to the sachetisation of financial products. However, this particular deposit scheme, say sources, has rankled the banking regulator.

What is the Equitas deposit scheme and how does it work? 

Equitas SFB announced that any Google Pay user can open a fixed deposit account with the bank using Google’s Unified Payment Interface (UPI).

Equitas has been given a