Mumbai, Dec 08: The Reserve Bank of India has revised the status of Indian students abroad by stating that they would be treated as non-residents under FEMA. This decision has been taken after taking into account the definition of resident under FEMA and the intention of the student to stay abroad for uncertain period though not for permanent settlement, RBI said in a release here today.
As non-residents, students would be eligible for receiving remittances from India - upto USD 1,00,000 from close relatives in India on self declaration towards maintenance, upto USD 1 million out of sale proceeds/balance in their account maintained with an authorised dealer, all other facilities available for NRIs under FEMA, it said.
Educational and other loans, which were availed by students (as residents of India) - would be allowed to continue, it said.
RBI also clarified that these instructions do not dilute in any way utilisation of existing foreign exchange remittance facilities to students in regard of their academic pursuits. Bureau Report