In order to successfully operate such an account, it is important for the student to be aware of Indian foreign exchange remittance policies and then of course the rules and regulations to follow in order to get an NRI account
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A large chunk of Indian students go abroad to study every year. One can gauge the situation, as 72,000 students left the country for their education in some foreign university in the first two months of this year. Though everything else got affected due to the pandemic, the situation in this sphere has not changed much.
Understandably, the biggest issue confronting the students is money management, and the best way this can be dealt with is by opening an NRI account. Having a student NRI account can help students and their families lead a stress-free life as the bank handles all their financial matters.
But to successfully operate such an account, it is important for the student to be aware of Indian foreign exchange remittance policies and then of course, the rules and regulations to follow to get an NRI account.
Knowledge about the many benefits too is vital, as this helps in realizing them over time. Multiple types of university fees need to be paid. Also, only after a student pays up the admission fees from India that colleges approve the admission.
But then money for daily expenses too is required, and among other things, the change in currency value can combine with everything else to lead to heavy expenditures. Though many take up part-time jobs, parents, in most cases, are known to support them by sending money for rent, food, and several other needs.
Under the Foreign Exchange Management Act (FEMA), students abroad are treated as NRIs. Hence, just like NRIs, they can avail of banking facilities. However, FEMA does not allow them to open a savings bank account. They need to open an NRI account, the most common among them being the Student NRE (Non-resident External) account.
Indian banks offer NRI students the option to open an NRE account and have an international ATM-cum-debit card. Interest rates are also reasonably good. This account ensures easy movement of funds, and the interest is exempted from tax.
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