CIR. NO. 45/2003-04-RB, DT. 08/12/2003
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
Indian Students Studying Abroad-Revision in the Residential Status
Indian Students Studying Abroad-Revision in the Residential Status
(A) a person who has gone out of India or who stays outside India, in either case
- a. for or on taking up employment outside India, or
b. for carrying on outside India a business or vocation outside India, or
c. for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;"
3. Furthermore, the purport of 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 urge, therefore, that the definition needs to be revised.
4. Having regard to the circumstances stated above, it is clear that on both counts viz. their stay abroad for more than 182 days in the preceding financial year and their intention to stay outside India for an uncertain period when they go abroad for their studies, they can be treated as Non-Resident Indians (NRIs).
5. As non-residents, they will in any case be eligible for receiving remittances from India, as follows : (i) up to USD 100,000 from close relatives from India on self-declaration towards maintenance, which could include remittances towards their studies also, (ii) up to USD 1 million out of sale proceeds/balances in their account maintained with an AD in India, (iii) all other facilities available to NRIs under FEMA, (iv) educational and other loans availed of by students as resident in India which can be allowed to continue as per provisions of Notification No. 4/2000-RB dated May 3, 2000.
6. It is clarified that these instructions do not dilute in any way the utilisation of the existing foreign exchange remittance facilities to students in regard to their academic pursuits.
7. Necessary amendments to the Foreign Exchange Management Regulations, 2000 are being issued separately.
8. Authorised Dealers may bring the contents of their circular to the notice of their constituents concerned.
9. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager