Zero Markup & Zero Charges on International Money Transfers with AU Small Finance Bank

Every time you send money abroad — or receive it from overseas — there is a number your bank will not put in the fee schedule. It does not appear on the transaction receipt. It is not GST. It is not the wire transfer charge. It is the forex markup: a small but persistent percentage quietly tucked into the exchange rate itself, ensuring you always buy foreign currency a little higher than the market price and always sell it a little lower.

AU Small Finance Bank has always believed in putting customers first and continues to move forward with this approach. The bank has announced Zero forex markup and zero bank charges on international remittances—whether A resident Indian sending money to overseas from India or an NRI transferring money towards and out of their NRE or NRO accounts. 

Customers benefit from zero markup, zero fees, and zero correspondent bank charges on outward remittances, along with zero margin on inward remittances.

What Is a Forex Markup and Why Has No One Talked About It?

The forex markup is the gap between the interbank rate — the benchmark rate at which banks trade currency among themselves — and the rate quoted to retail customers. Banks have always applied this gap; it is their core forex revenue mechanism. The interbank rate is publicly available, but most customers have no idea what it is at the time they book a transfer, making comparison nearly impossible in practice.

Disclosed charges (transaction fees, GST, TCS) are straightforward: they appear as line items. The markup does not. It lives inside the exchange rate, invisible unless you go looking. And most people, understandably, do not go looking.

AU Small Finance Bank new proposition removes this hidden layer entirely. Remittances are now processed at the bank's IBR (Interbank Reference) rate — with no padding added. What the market says the currency worth is what the customer gets.

Outward Remittances: Sending Money Abroad Without Extra Charges

Residents transferring money overseas — for education, family maintenance, property purchase, investments, or other RBI-permitted purposes under Liberalised Remittance Scheme (LRS) :

Under the new proposition Customer Get’s

• Zero forex markup— the rate applied is the IBR reference rate with no spread added.
• Zero bank transaction charges — no transfer fee charged by AU Small Finance Bank
• Zero foreign or correspondent bank charges

NRI customers holding AU Small Finance Bank accounts also benefit from the same terms on their outward remittances from India, not just residents.

Inward Remittances: The Other Side of the Equation

For NRIs, the need is even more personal. Most remit a fixed amount to India every month — to support ageing parents, repay home loans, or build savings back home. They compare apps, check aggregator platforms and choose what appears to be the best exchange rate, yet often lose money through hidden forex margins.

The AU Small Finance Bank inward remittance proposition for funds credited to AU NRE/NRO Accounts or resident AU Savings Accounts addresses this with:

• Zero forex margin on the currency conversion (at IBR reference rate)

The intent is simple — money earned through years of hard work abroad should reach India without silent deductions at the bank’s end.

Who Does This Apply To?

The Zero markup, zero-charges proposition covers a broad set of customers:

Customer TypeCoverage Under This InitiativeResident IndiansOutward remittances under LRS — education, family maintenance, investments, and other permitted purposesInward Remittance - AU Savings Account holder receiving funds from abroadNon-Resident Indians (NRIs)Inward Remittance - NRI sending money to AU NRE and NRO Savings Account or to Indian resident AU Savings Account.Outward Remittance - NRI sending money abroad 

Why This Matters — and Why Now?

The international remittances market in India is not small. Inward remittances alone consistently rank among the highest globally. Outward remittances under LRS have grown steadily year on year as more families send children abroad for education, more professionals invest internationally and more NRIs maintain dual financial lives across borders.

In a market this large, even a 1% margin represents enormous aggregate value extracted from customers.

AU Small Finance Bank Zero Forex Markup and Zero Bank Charges offering reflects a fundamental rethink of forex economics. Instead of relying on hidden spreads, the Bank is focusing on scale‑led growth building customer trust through transparent pricing and stronger relationships. This is a strategic repositioning, and not only a promotional discount.

For customers, the immediate practical benefit is clear. Every international transfer is full of savings. Every rupee received is whole. And for the first time, there is nothing to squint at in the fine print.

Frequently Asked Questions

1 Does AU Small Finance Bank’s Zero-markup proposition apply to all foreign currencies?

Yes, It applies to all currencies serviced by AU Small Finance Bank

2. On what exchange rate will my transaction be processed?

A. Your transfer will be processed on the IBR rate (Inter- Bank rate) as we are offering zero forex markup and zero Charges on sending funds overseas.

3. Is there any GST applicable on TCS? Can I claim TCS deducted in ITR?

There’s no additional GST charged on TCS deduction. You can claim credit for deducted TCS amount while filing the ITR for a given financial year subject to applicable income tax provisions.

4 How do I know the break up of charges, taxes etc. for my transfer?

As part of AU Small Finance Bank’s offering, your overseas fund transfer is processed with Zero forex markup and zero bank charges. For more details, please refer your transaction receipt.

5. Do inward remittance benefits extend to NRE account holders?

-Yes NRE accounts are the primary destination for NRIs to remit funds to India. Key benefits are :

1. Tax free funds

• Money remitted from abroad into an NRE account is not taxable in India.
• Interest earned is also completely tax free. This is one of the biggest advantage vs NRO.

2. Full repatriability

• Both principal + interest can be sent abroad without restriction.

3. No TDS

• No TDS on interest income.

4. Clean source classification

• Funds are treated as foreign income, not Indian income. 

6. How do inward remittance benefits differ for NRO accounts, if at all?

1. Tax treatment:

• Money remitted into NRO is treated as Indian income pool.
• Interest earned is taxable (TDS is applicable on interest earned, typically @ 30% + surcharge + cess)

2. Repatriation is restricted

• You can repatriate upto USD 1 Million per financial year
• Requires Form 15CA/CB & Source of Funds proof 

7. What are the minimum and maximum transfer limits for remittances?

For Outward remittances : RBI caps outward LRS remittances for resident individuals at USD 2,50,000 & from NRO Outward Remittances USD 1 Million per financial year, if your transfer is for a specific purpose like education or investments, sub-limits may apply, so it's worth confirming with the bank directly.

non-current income limit is 1 million and current income source of fund no limit .

For Inward remittances :

Inward remittance maximum limits (NRE & NRO)

-Under FEMA,there is no upper limit on money you can send into India.

-As long as funds are from legitimate sources & Proper KYC/AML checks are satisfied., you can remit any amount into both NRE & NRO accounts.

Inward remittance minimum limits (NRE & NRO)

-There is no regulatory minimum but practical limits apply.

-Banks/remittance partners may set minimum transaction amounts (eg: $1000,$5000,$10000, $50000 etc).

-Some Corridors like UAE,US,UK may have operator specific thresholds.

8. What is the Inward remittance process flow to AU NRE/NRO accounts?

Secure International Transfers with Simple Sender Details:

• Your information (Beneficiary details)
  • Full Name
  • Bank Account Number
  • Complete address
• Purpose for Remittances
  • Ensure that you include a clear purpose for transfer
• AU Small Finance Bank information (Beneficiary bank information)
  • Bank Name: AU Small Finance Bank
  • SWIFT Code: AUBLINBBXXX
• Charge Code
  • It is recommended that the sender instructs his/her bank to select “OUR” option for Charges
• Currency of transfer
  • Specify the currency of transfer
• Correspondent Bank details
  • It is recommended to share AU Small Finance Bank correspondent bank details for receiving the funds in Foreign Currency
  • To check the correspondent bank details click on: https://www.au.bank.in/business-banking/swift-and-bic

Disclaimer

This article is for informational purposes only and does not constitute financial, tax, or legal advice. Forex rates, charges, and terms are subject to change. Statutory levies including TCS and GST are determined by applicable law and are not within the bank's discretion to modify. Customers are advised to verify current terms, applicable currency pairs, and documentation requirements with the AU Small Finance Bank before initiating any international remittance. LRS remittances are subject to RBI guidelines and the annual permissible limit of USD 2,50,000 per individual per financial year.