Indians studying abroad get NRI status

 As NRIs, these students will be eligible for receiving remittances from India up to $100,000 from close relatives on self-declaration towards maintenance. This could include remittances towards their studies too.

 Besides, they can receive up to $1 million out of sale proceeds/balances in their accounts maintained with an authorised dealer (bank) in India in addition to all other facilities available for NRIs under FEMA.

 Finally, these students will be allowed to continue the educational and other loans which were availed of by them as residents in India.

 The RBI has been receiving representations from Indian students studying abroad requesting that they be treated as non-residents under FEMA.

 Their argument is that though they are students, they are in reality not dependent for a dominant part of their expenses on remittances from their households in India.

 Often they are permitted to work and have to undertake certain related financial transactions. They, therefore, sought a change in the definition.