AU Small Finance Bank introduces zero-forex-margin remittances, setting a new benchmark in transparent cross-border banking

DUBAI, UAE, May 4, 2026 /PRNewswire/ -- 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 to transition into a Universal Bank, has launched a customer-centric forex proposition aimed at eliminating embedded charges on international fund transfers. With this offering, AU SFB becomes the only Indian bank in the private sector to provide zero forex margin and zero bank charges on both inward and outward remittances, enabling customers to transfer money to and from India at truly transparent exchange rates, without any hidden mark-ups.

The initiative covers outward remittances (Send Money Abroad) under the Liberalised Remittance Scheme (LRS) for resident Indians sending funds overseas for education, family maintenance, investments and other RBI permitted purposes as well as inward and outward remittances for NRIs through AU NRE and NRO accounts. With this move, AU SFB strengthens its positioning in transparent forex services, international remittances, and customer-centric digital-banking solutions.

What This Means for Customers

For resident Indians sending money abroad under the Liberalised Remittance Scheme (LRS) — for education, family maintenance, or investments, AU SFB now offers:

• Zero forex margin, processed at AU SFB's Interbank Reference Rate (IBR)
• Zero transaction charges
• Zero foreign or correspondent bank charges levied by AU

For NRIs remitting funds to India via AU NRE and NRO accounts:

• Zero forex margin on inward remittances
• Zero AU transaction charges, with currency conversion at IBR rates

Traditionally, forex margins of up to 2% have been embedded invisibly in bank exchange rates, eroding the value of every transfer. AU SFB's initiative directly addresses this.

These propositions are designed for:

• Resident Indians sending money abroad under LRS
• NRIs remitting funds to India, across the globe
• Affluent and mass-affluent customers with cross-border financial needs
• Students and parents managing overseas education expenses.

Additional Offerings for NRIs

AU SFB also offers FCNR (B) deposits in USD, GBP, EUR, and CAD with returns up to 5.35% p.a. (tax-free, fully-repatriable), and NRE Fixed Deposits offering up to 7.25% p.a., reflecting its deep understanding of NRI savings and remittance needs.

Access the Services

• Outward remittances (LRS): https://sr.au.bank.in/send-money-abroad
• NRI accounts: https://www.au.bank.in/nri-banking#

Important Disclosure: Correspondent or intermediary bank charges applied overseas remain outside AU's control. Services are subject to FEMA, RBI guidelines and applicable terms and conditions.

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