AU Small Finance Bank raises FCNR deposit rates to 7.40% and NRE fixed deposit rates to 7.60%

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 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 27 July 2026.

The Bank has increased the peak interest rate on FCNR(B) Deposits from 7.10 per cent p.a. to 7.40 per cent p.a. for the 3-4 year tenure, while the peak rate on NRE Fixed Deposits has been revised from 7.00 per cent p.a. to 7.60% p.a. for the 36 Months 1 Day to 45 Months tenure. Interest on FCNR(B) deposits is payable semi-annually.

With a large Indian diaspora residing across the UAE and Gulf region, demand for secure, fully repatriable and digitally accessible banking solutions continues to grow. AU SFB's enhanced FCNR(B) and NRE deposit offerings help NRIs grow their overseas savings while staying seamlessly connected to banking services in India.

Recent RBI measures providing greater flexibility on foreign currency deposit rates have further enabled banks to offer more attractive FCNR deposit returns. FCNR(B) deposits remain a preferred avenue for NRIs looking to grow overseas earnings while mitigating foreign exchange risk.

Available in US Dollars, FCNR(B) deposits offer full repatriability of principal and interest, along with applicable tax benefits in India. Similarly, NRE Fixed Deposits provide an attractive rupee-denominated savings option with full repatriability and tax-free interest income in India, subject to prevailing regulations.

Commenting on the occasion, Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank, “For overseas Indians, banking today is about more than just attractive rates - it is about convenience, transparency and trust. Through this enhancement, we aim to provide NRIs with a rewarding banking experience backed by competitive returns, seamless digital access and a strong commitment to customer value."

The revised rates are available to both new and existing customers through AU SFB's digital and physical banking channels. NRIs can conveniently access banking services through the AU 0101 App, WhatsApp Banking and 24x7 Video Banking, enabling account servicing and relationship management from anywhere in the world.

For detailed tenure-wise interest rates, visit: https://www.au.bank.in/interest-rates/au-fcnr