Form A2 is one of the most important documents that you will be required to fill out and submit while loading a Forex card and remittance. As international students studying abroad, managing finances becomes an international part of their journey. From paying tuition fees to covering living expenses, many students rely on remittance services to ensure funds are accessible and securely transferred. Form A2 plays a vital role in making this possible and it works as per the Reserve Bank of India (RBI) guidelines. Let’s understand what is Form A2 and how RBI regulations impact remittance, forex cards and their usage.
What is Form A2?
Form A2 is a document mandated by the RBI for Indian residents sending money abroad under the Liberalised Remittance Scheme (LRS). The form essentially authorizes banks to facilitate foreign currency transfers for various purposes like education, travel, medical expenses, and more. For international students, this form is essential for payments like tuition fees, accommodation costs, and other study-related expenses. It ensures that remittance activities comply with RBI guidelines, protecting both the student and the country’s foreign exchange reserves.
Also Read: Check here some of the most important terms related to international money transfer
Why Indian Students Need Form A2 for Studying Abroad?
If you’re an international student receiving funds from home then you must know that the transfer is being done as per the LRS. Through this scheme, Indian residents can remit up to USD 250,000 per financial year for personal and educational expenses. Form A2 becomes the document that authorizes these transactions and keeps track of them, ensuring they meet regulatory standards. Completing Form A2 is required when making a large payment through banks or when setting up a remittance account for regular transfers. Also, some banks require Form A2 while reloading a Forex card. Canara Bank Forex card is one of the travel cards in which you need to fill and submit form A2 while purchasing and reloading the card.
How to Fill Form A2?
Form A2 can be obtained from most banks or downloaded from the RBI website. It is important and fill out the form properly and submit it within the stipulated time so that the transaction can be done properly without any errors. Check below the step-by-step guide to filling it out:
- Download the form through a reliable website. Many banks provide options to download the form through their official website.
- Enter details like your name, address, and bank account information or any other required details.
- Select the relevant purpose code. For education, use the code that specifies educational expenses.
- Sign a declaration affirming that the remitted funds will be used only for the specified purpose.
- This form must be submitted alongside proof of the purpose, like an admission letter, fee structure, or other relevant documentation.
RBI Guidelines on Form A2 and Remittance
To protect India’s foreign exchange reserves, the RBI enforces several guidelines on remittance. It is essential to make all the transactions as per the guidelines of the Reserve Bank of India. Any illegitimate transaction may result in a huge penalty or legal action. Check some of the major RBI guidelines on remittance for education below:
Limitations on Remittance
Under the Liberalised Remittance Scheme (LRS), Indian residents, including students, can remit up to USD 250,000 per year. This amount is generally adequate to cover most educational expenses, including tuition and living costs. If more amount is required, students may need to apply for special permission.
Purpose-Based Limits
The RBI has specific codes and guidelines for various purposes. Educational expenses fall under a unique purpose code, simplifying remittances to institutions abroad. The students or individuals must check the list of all major purpose codes for outward remittance so that a record can be kept for further use. A right purpose code will make sure that the transaction is being done properly.
Documentation Requirement
Students must submit documents like admission letters, invoices, and Form A2. These ensure that funds are used for legitimate purposes and help streamline the approval process.
Forex Cards for Students
Forex cards, or prepaid travel cards, are a convenient and safe option for students to access funds abroad. A lot of banks provide some of the best Forex cards for students. However, loading these cards also requires adherence to RBI regulations. Forex cards can only be loaded under LRS limits, and some banks may ask for Form A2 as part of the process.
Also Read: Check here all about HDFC International Money Transfer Vs Axis Bank International Transfer and Know the Difference
Using Forex Cards: An Alternative to Remittance
Forex card is one of the best modes of carrying currency and managing expenses abroad. Several banks and financial institutions in India and abroad provide Forex cards for students. It offers low exchange rates, safe and secure payments, a withdrawal facility, multi-currency support etc. Check some of the benefits of a Forex card for international students below:
- Forex cards fall under the same LRS limits which means that students can load up to USD 250,000 per year.
- When loading a Forex card, banks may ask for Form A2 as proof that funds are being used for legitimate education expenses.
- Forex cards generally have lower fees compared to international bank transfers. It is a cost-effective choice for daily expenses and emergencies abroad.
- Forex cards offer high-security features, and they can be easily blocked or replaced if lost.
Managing funds and understanding RBI regulations might seem difficult but a clear understanding of Form A2 and the LRS can help international students ensure that they are compliant while meeting their financial needs. Check some common FAQs based on Form A2 and RBI Guidelines for Remittance below.
FAQs
Form A2 is an RBI-required document that authorizes Indian banks to facilitate foreign currency remittances under the Liberalised Remittance Scheme (LRS).
Under the RBI’s LRS, Indian residents can remit up to USD 250,000 per financial year for personal and educational expenses abroad.
Students must provide personal details, specify the remittance amount, select the purpose code for education, and sign a declaration. They should also attach documentation like an admission letter or fee structure to validate the transaction.
Yes, forex cards are a convenient and secure way to carry funds abroad as they offer lower conversion fees and safety features. Some banks may require Form A2 when loading forex cards, as the funds still fall under the LRS limit.
Students should retain copies of Form A2, transaction receipts, forex card statements, and related documentation.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
