Studying abroad can be the most fulfilling and exciting experience in a student’s life. However, fulfiling the dream of spending a substantial amount of time in foreign countries for the purpose of education comes at a hefty cost. Despite the expenses and a handsome amount of hassle, Indian parents have been insisting their children to pursue education from foreign universities.
While a student is planning to study abroad, there are a number of factors that can incur expenses. Besides educational expenses, accommodation, food, insurance, transportation, etc. also require a huge sum of money. On top of that, your choice of country, where you are willing to migrate, determines a lot about your expected expenses.
The most common ground, where students and their parents back off is currency exchange. Foreign exchange, a vital part playing a considerable role in your migration, needs to be comprehended properly before you set off for your amazing career. In this blog, we have made a comprehensive list of the frequently asked questions by students regarding foreign exchange in India. So let’s go through the FAQs.
1. What is the maximum amount of money I can take to the USA?
A student is allowed to use up to $250,000 in one financial year for the purposes related to education, sourced from Forex cards and Wire transfers. This amount is inclusive of the tuition fees and living expenses. In case if someone’s tuition fee is higher, additional expenses can be justified by presenting a proper fee slip.
2. What is meant by Forex Cards and Wire Transfers?
The most common method of sending funds abroad is through Wire transfers. This method uses SWIFT (Society for Worldwide Interbank Financial Telecommunication) to send money. In order to send funds abroad, one requires to have one sending and receiving bank account in the native and foreign country respectively. The banks at both the sending and receiving ends will levy some service charges. The sending bank will charge a remittance fee while the bank at the receiving end will levy a beneficiary charge. All these charges vary depending on the country where you are sending the money.
On the other hand, Forex cards are special kinds of prepaid cards where money can be added in local currency. This card, when taken to foreign countries, changes the value of the loaded money according to the current forex rate. Forex cards come in handy as they can be used in ATMs, online transactions, and POS terminals. It is advisable that you check the online forex rates before applying for a forex card.
3. Is the Forex card transferable?
The answer is NO. Forex cards are allotted to applicants under strict personal identification and KYC compliance. After the demonetization in India, airports follow stringent checking policies wherein the proof of forex purchase is required to get past the terminal. In case you are carrying an unauthorized forex card, the entire amount would be confiscated.
4. What documents are required for purchasing forex?
One will require to produce a copy of the education visa, air ticket, passport and if the student is going to an American university, an I-20 form will be needed as well. At the time of remittance, one will require to furnish ID proof, passport, offer letter from the university, PAN card, and the A2 form, which would be given by the service provider. If anyone’s parent is sending him/her money then they will also need to produce an ID proof, PAN card and the proof of residence.
5. How many types of forex cards are there?
There are mainly two types of forex cards. These are:
Single-currency cards –
These cards are typically loaded with currencies of a particular country. These cards are suitable for students migrating to a particular country and not thinking of visiting anywhere else.
Multi-currency cards –
These cards can be loaded with currencies of different countries. Currencies of up to 18 different countries can be loaded in a single card. These cards are especially suitable for students who engage in intercountry travel.
These are the frequently asked questions by students who are willing to study abroad. It is advisable that you learn each necessary aspect of forex cards and foreign exchange. In case you want to know the live forex rates, you can get in touch with Best Price Forex, a reputed foreign exchange portal in India catering to customers in a number of cities viz., New Delhi, NOIDA, Gurgaon, Chandigarh, Bangalore, Chennai, Ahmedabad, Jaipur, Kolkata, Amritsar, Surat etc.