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Informist, Wednesday, Jun. 10, 2026

--AU Small Fin Bk ups 3-5 year FCNR(B) deposit peak rate to 7.10% from 5.15% 

MUMBAI – AU Small Finance Bank has increased the peak interest rate on its Foreign Currency Non-Resident (Bank) deposits for three to five years to 7.10% from 5.15%, effective Wednesday, the bank said in a press release. The revision follows the Reserve Bank of India's announcement on Friday of a swap facility for banks to mobilise fresh FCNR(B) deposits, the bank said.

FCNR deposits are an important channel for attracting overseas Indian savings into the country while protecting depositors from exchange-rate fluctuations. Available in US dollars, these deposits offer non-resident Indians a fully repatriable investment avenue, with both principal and interest exempt from income tax in India. Interest on FCNR(B) deposits is paid semi-annually, the bank said.

AU Small Finance Bank has also increased interest rates on fixed deposits and recurring deposits to 7.40% from 7.25% each. "The revision comes at a time when savers across India are increasingly looking for stable, high-yield deposit options, while NRIs continue to seek secure and efficient avenues to manage savings across geographies," the bank said in the release.

The bank has also introduced zero forex margin and zero bank charges on eligible inward and outward remittances. Under the offering, eligible customers will receive currency conversion at the bank's Interbank Reference Rate without any transaction charges. 

At 1453 IST, shares of AU Small Finance Bank traded at INR 959.75 apiece on the National Stock Exchange, down nearly 2%. For the March quarter, the bank had reported a net profit of INR 8.32 billion and total income of INR 57.50 billion.  End

Reported by Diksha Tripathy 

Edited by Avishek Dutta

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