AU SFB launches zero-forex-margin remittances in India

By Parth Prabhudesai

AU Small Finance Bank (AU SFB) has introduced a new forex proposition offering zero forex margin and zero bank charges on both inward and outward international remittances, aiming to bring greater transparency to cross-border transactions.

The initiative covers outward remittances under the Liberalised Remittance Scheme (LRS), allowing resident Indians to send money abroad for purposes such as education, investments and family maintenance. It also extends to non-resident Indians (NRIs) using NRE and NRO accounts for transfers to and from India.

With this move, AU SFB becomes one of the few private sector banks in India to eliminate embedded forex mark-ups, which have traditionally reached up to 2% and reduced the value of international transfers.

Under the new offering, customers will benefit from currency conversion at the bank’s Interbank Reference Rate (IBR), along with zero transaction charges and no additional fees from AU on remittances. The proposition is designed for a wide range of users, including students managing overseas education expenses, families supporting dependents abroad, and affluent customers with global financial needs.

For NRIs, the bank is also offering zero forex margin on inward remittances, along with competitive deposit products such as FCNR (B) deposits in major currencies and NRE fixed deposits.

The launch comes as AU SFB continues to expand its product suite following its in-principle approval from the Reserve Bank of India to transition into a universal bank.

By removing hidden charges and simplifying pricing, the bank aims to position itself as a transparent and customer-focused player in India’s growing cross-border remittance market.