There are a few important aspects that Indian students studying abroad should remember with regards to limit of foreign currency they are allowed to avail and carry, while studying abroad. We have explained a few other things that Indian students should note with regards to their residence status, incidental expenses etc., apart from foreign currency limits. To read more on education visit www.careerindia.com
Estimate from University important
Indian students pursuing their studies abroad can avail an amount in foreign currency based on the estimate received from the institution abroad or $100,000, per academic year, whichever is higher. This may be availed from an authorized dealer Category I Bank and Authorized Dealer Category II. Authorised dealers are dealers who are allowed to give and take foreign currency and have a valid license to do so.
Limit on amount of hard foreign currency that you can carry
A student may avail an amount of $10,000 or its equivalent for incidental expenses out of which $3000 or its equivalent may be carried in the form of foreign currency while going for study abroad. The rest could be carried by way of banker's draft or in traveler's cheque. Remember, you can carry only up to $3000 in hard currency.
Can withdraw from NRO account
A student holding NRO account may withdraw and repatriate up to $1 million per financial year from his NRO account.
Students remain NRIs
Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA, 1999. This means they can maintain NRE and NRO accounts, just like NRIs do. FEMA is nothing but Foreign Exchange Management Act, pertaining to regulation for foreign currency.
Educational and other loans availed by students as residents in India can be allowed to continue.