Enhanced NRI deposit rates, combined with zero forex margin and zero bank charges on remittances, reinforce AU SFB's comprehensive banking proposition
MUMBAI, India, July 28, 2026 /PRNewswire/ -- 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. Interest on FCNR (B) deposits is paid out semi-annually
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.
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.
AU SFB also continues to offer zero forex margin and zero bank charges on eligible inward and outward remittances. The revised rates is 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 24x7 Video Banking.
For detailed tenure-wise interest rates, visit: https://www.au.bank.in/interest-rates/au-fcnr
About AU SFB
AU Small Finance Bank is India's largest Small Finance Bank with 2,920 banking touchpoints across 21 states and 4 Union Territories, serving 1.2+ crore customers. As of June 30, 2026, the Bank reported shareholders' funds of ?20,885 crore, deposits of ?1,57,727 crore, and a loan portfolio of ?1,44,250 crore.
https://www.au.bank.in/
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