What facilities are available to NRI students under FEMA regulations?

What facilities are available to NRI students under FEMA regulations?

Students who move abroad from India for education are treated as NRIs under FEMA (Foreign Exchange Management Act) guidelines. As a result, they are entitled to the same financial privileges as other NRIs, including investment, remittance, and account management options.

Key facilities available to NRI students

  • Remittance facility:
    Students can remit up to US $1 million per financial year from their NRE or NRO accounts. This limit includes proceeds from:
    • Sale of immovable property
    • Sale of investments such as shares and mutual funds
    • Inherited or gifted assets
  • Account access:
    NRI students can:
    • Open and operate NRE/NRO accounts
    • Invest in mutual funds, bonds, and equity markets through these accounts
    • Repatriate funds within the allowed FEMA limits
  • Loan repayment and transfers:
    • Use NRE/NRO funds to repay education loans in India
    • Receive inward remittances from relatives in India for educational and living expenses

What if...

ScenarioWhat you should know
You already have a resident accountYou must convert it to NRO/NRE status to qualify for FEMA benefits
You receive a scholarship or funding abroadThese funds are not counted towards the $1 million limit for repatriation
You want to invest in India as a studentYou can invest using your NRO account, subject to standard FEMA rules
Always update your KYC and bank details to reflect NRI status when leaving India for studies. This ensures compliance and access to remittance and investment privileges.
Last updated: 23 Jun 2025

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