RBI Move: Does Your Child's Study Abroad Cost Less?
RBI has changed rules around sending money abroad for education. If your child studies in the US, UK, or Canada, this could reduce what you pay in forex charges or transfer fees when sending tuition money overseas.
₹20,000 saved on forex fees = 2,000 cups of chai — or one semester's textbook budget abroad.
Your child's overseas tuition transfer could cost this much less yearly
Key Takeaways
Compare LRS forex rates across at least 3 banks or RBI-authorised remittance platforms before your next tuition transfer — rates vary by ₹1–2 per dollar.
Claim your TCS credit when filing your ITR — 5% TCS deducted on education remittances above ₹7 lakh is fully adjustable against your tax liability or refundable.
Check whether your bank has updated its LRS transaction process following the RBI move — call your forex desk or NRI/remittance branch directly to confirm.
RBI has changed rules around sending money abroad for education. If your child studies in the US, UK, or Canada, this could reduce what you pay in forex charges or transfer fees when sending tuition money overseas.
Here's what happened: RBI has made a regulatory move affecting foreign exchange or remittance rules that impacts money sent abroad under the Liberalised Remittance Scheme (LRS).. Education remittances to countries like the US, UK, and Canada are among the largest outflows under LRS, running into lakhs of rupees per family per year.. Any shift in forex rate guidance, TCS rules, or LRS transfer limits directly changes the real cost of sending tuition and living-expense money to a child studying abroad..
What you should do: Compare LRS forex rates across at least 3 banks or RBI-authorised remittance platforms before your next tuition transfer — rates vary by ₹1–2 per dollar.. Claim your TCS credit when filing your ITR — 5% TCS deducted on education remittances above ₹7 lakh is fully adjustable against your tax liability or refundable.. Check whether your bank has updated its LRS transaction process following the RBI move — call your forex desk or NRI/remittance branch directly to confirm..
Book your forex transfer mid-week (Tuesday–Thursday) — banks tend to offer tighter spreads then versus Monday or Friday when volatility is higher.
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- [1]“US, UK Or Canada? How RBI’s Latest Move Could Affect Your Child’s Study-Abroad Costs - NDTV Profit” NDTV Profit · 17 Oct 2026
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