MUMBAI, India, June 12, 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 significantly enhanced its Foreign Currency Non-Resident [FCNR (B)] deposit rates, with the peak USD deposit rate increasing from 5.15% p.a. to 7.10%* p.a., effective June 10, 2026. This revision underscores the Bank’s strategic focus on strengthening its NRI franchise amid rising demand for stable foreign currency deposits and diversified funding sources.
FCNR deposits remain a key channel for mobilising overseas Indian savings into India, while offering protection against exchange rate fluctuations.
Available in US Dollars, FCNR deposits offer NRIs a fully repatriable investment avenue with income tax exemption in India on both principal and interest, along with attractive returns on overseas earnings.
|
Product |
Earlier Peak Rate |
Revised Peak Rate |
|
FCNR |
5.15 % |
7.10%* |
* Interest on FCNR (B) deposits is paid out semi-annually.
Further strengthening its NRI proposition, AU SFB has also introduced zero forex margin and zero bank charges on eligible inward and outward remittances, placing it among the few private sector banks in India to eliminate embedded forex mark-ups that can typically erode up to 2% of transfer value.
Under this proposition, customers benefit from currency conversion at the Bank’s Interbank Reference Rate (IBR) with no additional transaction charges. This significantly enhances the efficiency of cross-border money movement for NRIs. With a compelling combination of high USD-denominated returns, zero-cost remittances, and seamless servicing, AU SFB is well positioned as a preferred banking partner for NRIs seeking efficient wealth management and savings solutions in India.
https://www.au.bank.in/interest-rates/au-fcnr
About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a Scheduled Commercial Bank and has established itself as India’s largest Small Finance Bank since commencing its banking operations in April 2017. Founded in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU is entering its 10th year as a Bank.
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