It's the time of the year students plan or start travelling abroad for higher education.
Before making payment at the universities or travelling, one should be aware of forex dealings and how the exchange rates work.
A student holding NRO account may withdraw and repatriate up to USD 1 million per financial year from his NRO account.
The student may avail of an amount of USD 10,000 or its equivalent for incidental expenses out of which USD 3000 or its equivalent may be carried in the form of foreign currency while going for study abroad.
Whom Can I Approach For Foreign Currency?
Make sure you approach an authorized dealer. Please do not buy dollars from those who are not authorized. It is illegal and not advised.
What can I do with my unspent Foreign Exchange?
Travellers need to surrender unspent foreign exchange held in the form of currency notes and travellers cheques within 180 days of return.
However, they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency.
How many days in advance one can buy foreign exchange for travel abroad?
Permissible foreign exchange can be drawn 60 days in advance. In case it is not possible to use the foreign exchange within the period of 60 days, it should be immediately surrendered to an authorised person.
How much forex can be drawn for medical treatment abroad?
You can release foreign exchange up to USD 100,000 or its equivalent to resident Indians.
One can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad.
What are the documents needs to avail foreign exchange for overseas studies?
- Student's passport for verification and return
- Letter from the student/guardian giving details of the study overseas and certifying the same
- Cheque or debit authority if not contained in the letter or given in the Traveler's cheque/currency notes/remittance purchase form
- Application in Form A2 signed by the Student/Parent
- FEMA Declaration
- Traveler's Cheque and /or currency note purchase form signed by the student
- Remittance purchase form (signed by the student/parent) if remittance is by draft or telegraphic transfer