Archive · 28 Jul 2026
AU Small Finance Bank Raises FCNR(B) Rates
AU Small Finance Bank has increased the interest rates for FCNR(B) deposits, which are fixed deposits in foreign currencies for NRIs.
These deposits protect against exchange rate fluctuations and offer higher returns.
The Reserve Bank of India (RBI) allowed banks to offer competitive rates to attract more foreign currency inflows.
AU Small Finance Bank now offers the highest rate at 7.40% for a specific tenure.
Other banks like SBI and RBL Bank also offer competitive rates.
The RBI's measures have already brought in significant foreign currency inflows, making FCNR(B) deposits an attractive option for NRIs.
AU Small Finance Bank raises FCNR(B) deposit rates to 7.40% for 3 years to less than 4 years.
FCNR(B) deposits allow NRIs to park money in foreign currencies, protecting against exchange rate fluctuations.
RBI's June 2026 measures aim to attract foreign currency inflows from NRIs.
Foreign currency inflows under the special swap facility reached $20.718 billion as of July 17, 2026.
SBI and RBL Bank also offer competitive FCNR(B) deposit rates, but lower than AU Small Finance Bank.
- Who
- AU Small Finance Bank, State Bank of India, RBL Bank, Non-Resident Indians (NRIs)
- What
- Hike in FCNR(B) deposit rates
- When
- June 2026 (RBI measures), July 17, 2026 (inflows data)
- Where
- India
- Why
- To attract foreign currency inflows from NRIs and offer competitive rates
Higher Interest Rates
Currency Risk Protection
Interest Rates
Higher Interest Rates
AU Small Finance Bank offers the highest FCNR(B) interest rate at 7.40% for 3 years to less than 4 years.
Currency Risk Protection
Other banks like SBI and RBL Bank offer lower rates, with SBI offering up to 6% and RBL Bank up to 6.35%.
Currency Protection
Higher Interest Rates
FCNR(B) deposits protect NRIs from exchange rate fluctuations by being denominated in foreign currencies.
Currency Risk Protection
NRE fixed deposits, which are in Indian rupees, do not offer this protection.
- Bank
- AU Small Finance Bank
- Highest FCNR(B) Interest Rate (USD)
- 7.40%
- Applicable Tenure
- 3 years to less than 4 years
- Foreign Currency Inflows (as of July 17, 2026)
- $20.718 billion
- FCNR(B) Inflows
- $17.406 billion
- OFCBs Inflows
- $1.970 billion
- ECBs Inflows
- $1.342 billion