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Sending Money to Students Abroad

Updated on May 09, 2019 05:18 pm
Indian student studying

Annually, a few thousand Indian students go abroad to complete their higher education and the U.S. has long been the most preferred destination. Even with tighter immigration rules, U.S. colleges and universities continue to attract students from all over the world. The U.S. universities consistently dominate the rankings, command a phenomenal international reputation, and provide opportunities to gain employment in the U.S. or other countries.

Related Article: Maintain F1 Student Status

According to the 2018 data released by the Institute of International Education (IIE) in collaboration with the U.S. Department of State's Bureau of Educational and Cultural Affairs, 17.9% of the total foreign students in the U.S. in 2017-18 were Indian students. A total of 196,271 Indian students, who contributed $7.5 billion towards the US economy, are the second highest group of foreign students in the U.S., next to the Chinese.



Once a student proceeds to the destination abroad, they will be expected to pay their tuition and living expenses. Some countries allow for the students to work part-time along with their studies to meet the cost of living in the designated area and most Indian students are supported by families.

For students receiving money from India, there are a few guidelines set by the Reserve Bank of India (RBI) under the Liberalised Remittance (LRS) Scheme, which all students studying abroad must abide by:.

1. Fee Remittance & Limits

The fee is generally paid to the foreign university directly before the student may embark on their travels. Under the Liberalised Remittance (LRS) Scheme, all resident individuals, including students, and minors are allowed to freely remit up to $250000 per financial year (April - March). The limit of $250000 can be used in a single forex transaction or multiple forex transactions combined in a financial year. However, you can exceed the foreign exchange limit of $250000 under special circumstances.

1. Authorized Dealers (AD) Category I and II bank and may allow remittances without seeking prior approval of the Reserve Bank of India exceeding the LRS limit of $250000 based on the estimate received from the university/institution abroad.

2. For expenses abroad that exceed the LRS limit but are related to studies and medical treatment, an individual may be permitted to avail more foreign exchange than their limit of $250000 provided they produce the required document proof.

  • Medical expenses abroad - Estimate from the doctor in India or hospital/doctor abroad.
  • Study abroad - Estimate from university/institution for tuition fee (and or maintenance expense).

2. Remittance for Living Expenditure

Living expense of student studying abroad is also covered under LRS because it is an integral part of studying abroad. It is usually the case that the student is required to either live in a hostel (if the college or university has such facility) or at a rented accommodation, while the study is in progress, for at least for the first year. The overall limit of $250000 is the same for any academic year.

3. Receiving money from your parents once you are in the foreign country

The government has given special status to the students who move out of India to study. These students are considered NRIs from the date they leave the Indian shores and do not have to wait to finish the 182 days abroad to be considered a non-resident. This revised rule has been helpful for students in opening bank accounts in the foreign country that their parents can use to send them funds. Through the NRI status, students can also open NRE and NRO accounts in India should they ever need to send money. You can read further on NRE/NRO accounts here.

How To Remit Money Abroad From India Under LRS

  1. Select a bank or RBI authorized dealers through whom you want to send money abroad. Select the one offering the best exchange rate.
  2. The bank account from which you are making the remittance should have been maintained for at least a year prior to the remittance. In the case of a new account, bank statements for the previous year or copies of the latest income tax assessment order or tax returns filed ought to be submitted.
  3. Submit A2 Form outlining the motive of your remittance.
  4. Submit the required KYC documents:
  5. Transfer the funds to the account of the bank or the remittance service provider so that they can transfer the fund the beneficiary abroad.
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The average exchange rate is 82.73.Dollar to Rupee forecast April 2024: At the beginning 82.78 Rupees. At the end of the month 82.67, the change for April -0.1%. Maximum 83.91, minimum 81.43. The average exchange rate is 82.70.Dollar to Rupee forecast May 2024: At the beginning 82.67 Rupees. At the end of the month 82.53, the change for May -0.2%. Maximum 83.77, minimum 81.29. The average exchange rate is 82.57.Dollar to Rupee forecast June 2024: At the beginning 82.53 Rupees. At the end of the month 82.61, the change for June 0.1%. Maximum 83.85, minimum 81.37. The average exchange rate is  82.59.Dollar to Rupee forecast July 2024: At the beginning 82.61 Rupees. At the end of the month 82.82, the change for July 0.3%. Maximum 84.06, minimum 81.58. The average exchange rate is 82.77.Dollar to Rupee forecast August 2024: At the beginning 82.82 Rupees. At the end of the month 83.16, the change for August 0.4%. Maximum 84.41, minimum 81.91. The average exchange rate is 83.08.Dollar to Rupee forecast September 2024: At the beginning 83.16 Rupees. At the end of the month 83.63, the change for September 0.6%. Maximum 84.88, minimum 82.38. The average exchange rate is 83.51.Dollar to Rupee forecast October 2024: At the beginning 83.63 Rupees. At the end of the month 83.82, the change for October 0.2%. Maximum 85.08, minimum 82.56. The average exchange rate is 83.77.Dollar to Rupee November 2024: At the beginning 83.82 Rupees. At the end of the month 83.20, the change for November -0.7%. Maximum 84.45, minimum 81.95. The average exchange rate is 83.36.Dollar to Rupee December 2024: At the beginning 83.20 Rupees. At the end of the month 84.15, the change for December 1.1%. Maximum 85.41, minimum 82.89. The average exchange rate is 83.91.Sending Money from the US to India in 2024For those looking to send money from the US to India in 2024, numerous options and companies offer highly competitive rates. Some even provide first-time rates higher than the economic USD to INR exchange rate. Utilizing a comparison tool can help individuals find the best way to send money, ensuring they get the most favorable rates for their transactions. Use the CompareRemit comparison tool to find the best USD to INR exchange rate. How to Get the Best USD to INR Rate in 2024Compare and contrast the top money transfer companies on the market to find the best USD to INR exchange rate using our comparison tool.  Protip: Many companies offer a first-time user rate that is significantly better than their regular rate. Make sure you utilize those offers to get the best exchange rate that you can. ConclusionAs the USD to INR forecast for 2024 unfolds, staying informed about currency dynamics is essential for making informed financial decisions. Whether conducting international transactions for business or personal purposes, understanding exchange rate trends and exploring efficient remittance methods empower individuals to navigate the currency landscape with confidence and foresight.However, do keep in mind that the forecasts are often inaccurate and subject to correction. The USD to INR forecasts are based on the rate of inflation, central bank policies, and the health of the US and Indian economies.Send money home to India today while the USD to INR exchange rate is in your favor! Compare rates and providers by using our online comparison tool.

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