AU Small Finance Bank Raises NRI Deposit Rates

AU Small Finance Bank has revised interest rates on its Foreign Currency Non-Resident Bank deposits and Non-Resident External fixed deposits, strengthening its savings offerings for overseas Indians.

The revised rates took effect on July 27, 2026. The bank increased the peak interest rate on Foreign Currency Non-Resident Bank deposits from 7.10% to 7.40% per annum for deposits with tenures between three and four years.

For Non-Resident External fixed deposits, the highest interest rate was raised from 7% to 7.60% per annum for the tenure ranging from 36 months and one day to 45 months.

The revision follows the Reserve Bank of India’s June 8, 2026 announcement providing banks with additional flexibility to offer more competitive interest rates on foreign currency deposits.

Foreign Currency Non-Resident Bank deposits allow non-resident Indians to hold savings in foreign currency while reducing exposure to exchange-rate fluctuations. AU Small Finance Bank currently offers these deposits in US dollars, with principal and interest fully repatriable. Interest is paid semi-annually.

Non-Resident External fixed deposits, meanwhile, are rupee-denominated and offer full repatriability of principal and interest. Interest income is tax-free in India, subject to applicable regulations.

The bank also continues to offer zero foreign-exchange margin and zero bank charges on eligible inward and outward remittances. Currency conversion is carried out using the bank’s Interbank Reference Rate without transaction charges.

Both new and existing customers can access the revised deposit rates through the bank’s branches and digital channels, including its mobile application, WhatsApp banking and round-the-clock video banking service.

The revised rates reflect AU Small Finance Bank’s efforts to expand its non-resident Indian banking franchise by combining competitive deposit returns with digital access and lower remittance costs.