Higher FCNR and NRE rates, along with zero-cost remittances, strengthen AU Small Finance Bank’s offering for Gulf-based NRIs.
AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first institution in more than a decade to receive in-principle approval from the Reserve Bank of India (RBI) to transition into a Universal Bank, has strengthened its NRI banking proposition by revising interest rates on Foreign Currency Non-Resident (FCNR(B)) Deposits and Non-Resident External (NRE) Fixed Deposits, effective 27 July 2026.
The bank has raised the maximum interest rate on FCNR(B) Deposits from 7.10% per annum to 7.40% per annum for the three-to-four-year tenure. Meanwhile, the peak interest rate on NRE Fixed Deposits has been increased from 7.00% per annum to 7.60% per annum for deposits ranging from 36 months and one day to 45 months. Interest on FCNR(B) deposits will continue to be paid on a semi-annual basis.
With a significant Indian diaspora across the UAE and the wider Gulf region, demand for secure, fully repatriable, and digitally enabled banking solutions continues to rise. AU SFB’s enhanced FCNR(B) and NRE deposit offerings are designed to help NRIs maximise their overseas savings while maintaining convenient access to banking services in India.
Recent RBI measures allowing greater flexibility in foreign currency deposit pricing have further supported banks in offering more competitive FCNR returns. FCNR(B) deposits continue to remain a preferred option for NRIs seeking to grow their foreign earnings while managing currency-related risks.
Available in US dollars, FCNR(B) Deposits provide NRIs with full repatriation of both principal and interest, along with applicable tax benefits in India. NRE Fixed Deposits, meanwhile, offer a rupee-based savings solution with repatriability benefits and tax-exempt interest income in India, subject to prevailing regulations.
Commenting on the development, Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, said: “For overseas Indians, banking today extends beyond attractive interest rates — it is about convenience, transparency, and trust. Through this enhancement, we aim to deliver a rewarding banking experience for NRIs, supported by competitive returns, seamless digital access, and a continued focus on customer value.”
The revised rates are available to both new and existing customers through AU SFB’s digital and branch banking channels. NRIs can access a range of services through the AU 0101 App, WhatsApp Banking, and 24×7 Video Banking, allowing them to manage accounts, access support, and stay connected with the bank from anywhere in the world.
For detailed information on tenure-wise interest rates, customers can visit AU SFB’s official interest rate page.
