Should Zerodha also have investment options like FD, RD and PPF?

General
1

There should also be an option to invest in instruments like FD, RD, and PPF on the Zerodha Coin platform. And by pledging them, we can trade.

We have FDs etc in banks. But we cannot directly pledge them to Zerodha. There are some brokers who offer margin facility on FD but for this a lot has to be done. But if Zerodha enters into an agreement with its partner bank IDFC and we do our FD etc. and give permission to Zerodha, then it can be done easily.

This will give us a lot of trading opportunities. And you can also do your work and investment. I have FD but I don’t want to close it. I want to mortgage it with Zerodha and trade it with margin.

Is there any rule or law that can give us this facility?
Dear @nithin , @siva , @VenuMadhav , Can this happen?

3 Likes
2

@nithin @siva @faisr Please bring the option of having FD’s from Bajaj finance, equitas small finance bank in zerodha, since these institutions provide higher ROI, i would prefer keeping some money there also. Currently Groww, ETMoney has the option and i find these options will definitely increase customer base. If you provide the option of pledging it will definitely be beneficial

2 Likes
3

Yes, this option must be with Zerodha.
We cannot go to any other broker as they are not providing facility like Zerodha.
Zerodha should do this work immediately.

1 Like
4

Setu solves this.

5

Offering FDs, NPS, etc is on our list of things to do. Not on priority list though.

Accepting FDs as margin isn’t really possible for us as a broker, especially because of our scale. But you could instead invest into a liquid fund or any other debt fund that can give a similar return like an FD and pledge them.

5 Likes
6

Dear @nithin
Is there any fund give 7% returns with almost zero risk as most small finance bank give ?


[quote="nithin, post:5, topic:121785, full:true"]
[quote="Ravinder_Sharma, post:1, topic:121785"]
Is there any rule or law that can give us this facility?
Dear @nithin , @siva , @VenuMadhav , Can this happen?
[/quote]

Offering FDs, NPS, etc is on our list of things to do. Not on priority list though. 

Accepting FDs as margin isn't [really possible for us as a broker](https://support.zerodha.com/category/console/portfolio/articles/margin-pledging-fixed-deposits#:~:text=Reports-,Does%20Zerodha%20provide%20collateral%20margins%20for%20trading%20if%20I%20pledge,attached%20with%20accepting%20such%20instruments.), especially because of our scale. But you could instead invest into a liquid fund or any other debt fund that can give a similar return like an FD and pledge them.
[/quote]
7

Hmm… what makes you feel that a Small finance bank doesn’t have risks? Their assets (loans) quality considering all the exposure to microfinance (priority sector) is quite risky. If you get higher returns than government security in any instrument, there is a risk coming along with it. Since SFBs are scheduled commercial banks, if something happens RBI might jump in, but it might take a long time before the problem gets solved. Btw, the deposit insurance covers only Rs 5lks if something happened.

Did you see what happened with PMC coop bank?

1 Like
8

Nithin, up to 5 lakhs is saved by DICGC, and we have to go to another app for doing FD. Thus, I want Zerodha to be a one-stop solution, and with its analytics tool, we can capture insights about all our investments in one place.

9

SEBI has put strict regulations on brokers selling FDs (Anything RBI). In the current regulatory environment, it isn’t possible.

2 Likes