Mumbai, July 27: AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first institution in over a decade to receive in-principle approval from the Reserve Bank of India (RBI) to transition into a Universal Bank, has further enhanced its Non-Resident Indian (NRI) deposit offerings by revising interest rates on both Foreign Currency Non-Resident [FCNR(B)] Deposits and Non-Resident External (NRE) Fixed Deposits, effective 27th July 2026.
The Bank has increased the peak interest rate on FCNR(B) Deposits from 7.10% p.a. to 7.40% p.a. for the 3 to 4-year tenure, while the peak rate on NRE Fixed Deposits has been revised from 7.00% p.a. to 7.60% p.a. for the 36 Months 1 Day to 45 Months tenure.
FCNR deposits remain a key channel for mobilising overseas Indian savings into India, while offering protection against exchange rate fluctuations. The revision is further supported by the RBI’s announcement dated 08 June 2026 (RBI/2026-27/99 FMOD.MAOG.No.S-56/01.06.016/2026-27), which provides additional headroom for banks to offer more competitive foreign currency deposit rates.
This enhancement reflects AU SFB’s continued focus on building a comprehensive and competitive NRI banking franchise by offering attractive returns, seamless remittance solutions, and convenient digital banking services.
FCNR deposits remain a preferred avenue for NRIs seeking to grow their overseas earnings while mitigating foreign exchange risk. Available in US Dollars, FCNR deposits offer full repatriability of principal and interest, along with tax-efficient benefits in India. Similarly, NRE Fixed Deposits provide NRIs an attractive rupee-denominated savings option with full repatriability and tax-free interest income in India, subject to applicable regulations.
Further strengthening its NRI proposition, AU SFB continues to offer zero forex margin and zero bank charges on eligible inward and outward remittances. The Bank remains the only private sector bank in India to eliminate embedded forex mark-ups, helping customers maximise the value of their international transfers.
Under this proposition, eligible customers benefit from currency conversion at the Bank’s Interbank Reference Rate (IBR) without any transaction charges. Together, the enhanced FCNR and NRE deposit rates, coupled with zero forex remittance benefits, provide NRIs with a comprehensive banking solution covering both wealth growth and transaction efficiency.
The revised rates will be available to both new and existing customers through AU SFB’s extensive network of banking touchpoints and digital platforms, including the AU 0101 App, WhatsApp Banking and 24×7 Video Banking, allowing NRI customers abroad to manage accounts without needing a family member to visit a branch in person.
