AU Small Finance Bank raises FCNR deposit rates to 7.10%, strengthens end-to-end NRI banking proposition

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 per cent per annum to 7.10 per cent, 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.

With over nine million NRIs residing across the GCC region, including a significant base in the UAE, demand for secure, USD-denominated deposits with seamless repatriation continues to rise. AU SFB’s enhanced FCNR offering is well positioned to meet this need, especially for GCC-based NRIs earning in US dollar or US dollar-pegged currencies, enabling them to earn attractive returns without exposure to INR volatility.

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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.

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 two per cent 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 in the GCC region.

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 across the GCC seeking efficient wealth management and savings solutions in India.

For more information, visit:www.au.bank.in/interest-rates/au-fcnr