Why should Indian overseas students open an NRI Account?

According to reports, 1.3 million Indian students are studying overseas in 2023. Furthermore, innumerable students are in the process of moving overseas to pursue their higher education in 2024. If you too dream of pursuing your higher education at an IVY League University, appear for the GMAT/GRE and TOEFL to apply to them right away! Let’s say you have secured an admission at an IVY League University and are all set to move out.

While moving overseas for education is exciting, it comes with a set of challenges. Initially, you may find it difficult to manage your finances in the foreign land. We have a viable solution for this. Consider opening an NRI Account. The account possesses unique features and benefits which will enable you to take care of your specific banking and financial requirements in a hassle-free manner. Here are reasons why opening an NRI Account is necessary and advantageous:

Mandatory requirement

When you move overseas for education, your citizenship status changes from an Indian resident to a Non-Indian Resident. As you become an NRI, different rules and regulations apply to you. The Foreign Exchange Exchange Act mentions all rules and regulations applicable to you. The FEMA states that as an NRI, you cannot operate through a resident Bank Account in India.

You must either close your resident Bank Account or convert it to an NRI Account. So, open NRI Account online to continue banking in India.

Secure and grow your money

As an Indian overseas student, you would have tuition fees and living expenses to pay. Your parents would send you the Education Loan amount, or you may take up a part-time job to manage them. You need a Bank Account to secure your money. You should consider opening a Non-Resident External Account. An NRE Account lets you park your foreign currency money and earn a competitive interest rate on it. In simple terms, it keeps your money secure and growing.

Enjoy seamless transactions

As mentioned, your parents will send you the Education Loan amount to help you cover your tuition fees and manage your living expenses. Typically, they would send the money in parts as and when you send it. Open an NRE Account, so your parents can quickly transfer money into the account every month or so without having to complete extensive transfer procedures. Things could be the other way around as well. Suppose it is your mother’s birthday.

You wish to do something special for her. You save a decent amount of money from your part-time income and want to transfer it to her so she can buy something of her choice. You can open a Non-Resident Ordinary Account and transfer money to it. The NRO Account is very suitable for managing and growing your money denominated in Indian Rupees. Your mother can easily withdraw the transferred amount from the NRO Account and buy something for herself, just as you wished!