AU Small Finance Bank has revised the interest rates on its Foreign Currency Non-Resident (FCNR(B)) Deposits and Non-Resident External (NRE) Fixed Deposits, as part of its NRI banking offerings.
The bank has increased the peak interest rate on FCNR(B) deposits from 7.10 per cent to 7.40 per cent for the three- to four-year tenure. The peak interest rate on NRE fixed deposits has been raised from 7.00 per cent to 7.60 per cent for the 36 months one day to 45 months tenure.
According to the bank, FCNR(B) deposits allow NRIs to save in foreign currencies while reducing exposure to exchange rate fluctuations. These deposits are available in US dollars and offer full repatriability of principal and interest, along with tax benefits in India, subject to applicable regulations. NRE fixed deposits provide a rupee-denominated savings option with fully repatriable funds and tax-free interest income in India, subject to applicable rules.
The bank said the revision follows the Reserve Bank of India’s June 8, 2026 notification that provides banks with additional flexibility to offer more competitive foreign currency deposit rates.
AU Small Finance Bank also continues to offer zero forex margin and zero bank charges on eligible inward and outward remittances. Eligible customers receive currency conversion at the bank’s Interbank Reference Rate (IBR) without transaction charges, according to the bank.
The revised deposit rates are available to both new and existing customers through the bank’s branch network and digital banking channels, including the AU 0101 App, WhatsApp Banking and 24×7 Video Banking.
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