Opening bank accounts of overseas students in India

Foreign nationals visiting India on student visas (including those coming to India for the study of Yoga, Vedic Culture, Indian System of Dance and Music) are allowed to open a bank account in India. For such students, a Non-Resident Ordinary (NRO) account will be opened after completion of KYC (Know Your Customer) formalities like verification of identity proof and address proof of the person along with his photographs. The proof of identity and address of the foreign student in his home country is verified through his/her passport with appropriate visa and immigration endorsement. The student must produce a letter from the educational institution containing the intimation that he/she has been offered admission to their institute. The students with Pakistani nationality will need prior approval from the Reserve Bank of India to open a bank account in India. The Bangladesh nationals also need valid VISA and residential permits issued by the Foreign Registration Office (FRO)/Foreign Regional Registration.

Proof of local address:

The student who has opened the bank account shall submit valid proof of local address within 30 days of opening the bank account,  either in the form of the rental agreement or a letter from the educational institution informing the bank that the student was provided with a hostel facility by them. As per prevailing rules, banks are not supposed to insist on the landlord visiting their branch for confirmation of the rental agreement. However, they may use alternative means of verification of the local address of the account holder whenever doubts arise.  During the intervening period of 30 days pending verification of local address, the account holder may be allowed to operate his/her account with the remittance not exceeding US dollars 1000/- or its equivalent into the account. The maximum withdrawal from the account is Rs.50000/- per month during the period of pendency of verification of local address. Normal operation is allowed in the account in terms of extant guidelines applicable to NRO accounts under provisions of schedule 3 of the FEMA Act after submission of local address proof.

Permission to take foreign exchange on a visit to a foreign country/hometown:

The overseas students/trainees are allowed to take foreign exchange up to the value of US Dollar 1000/- equivalent for en route expenses on their visit to their hometown or foreign country during the vacation/holidays. However, the conversion of Indian Rupees to foreign currency should take place only from the balance available in their bank account which is exclusively derived out of inward remittances received from abroad.

Permission to transfer funds to the own country at the time of leaving India:

While leaving India after completion of studies or training, the students are permitted to transfer the balance available in their account. The authorised dealer bank allows such transfer from the student’s account provided the balance in the account represents inward remittances from abroad in an approved manner or rupee proceeds of foreign exchange brought by them to India or the stipend/scholarship received from the Government.

Related articles:

Form ‘QA 22’ for opening bank accounts of foreign nationals
Bank account opening for a foreign tourist

Bank accounts of foreign nationals on employment in India