Studying abroad is one of the biggest challenges any student can face. Students usually go through several challenges, some of them being payment of tuition fees to the university in a foreign land. Transferring money includes global money transfers or the international remittance network.
This issue of money transfer is a growing issue between countries around the world.
In 2022, it has been evaluated that around $ 630 billion was transferred across it. One of the biggest competitors is students who spend most of the money paying their university fees and additional expenses which are sent by parents for their child’s daily expenses.
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How does the International Remittance Network work?
One of the largest and most popular protocols which govern the flow of money across borders is the SWIFT (Society for Worldwide Interbank Financial Telecommunications) network, as per a report by The Indian Express. In simple words, it is a messaging protocol which comprises 11000+ banks and financial institutions which include more than 200 countries.
On average, every day 42 million messages containing remittance instructions are sent over the network every day.
Each and every bank part of the SWIFT network is assigned an 8- or 11-character unique code known as BIC (Bank Identifier Code). This code helps in identifying the bank, city and country where it is located. Also, this code along with the account number of the beneficiary is used to route as a remittance message generated in SWIFT. Hence, this is how money transfer takes place over a network.
How does this system work for students?
Before going abroad, each and every student should make sure that they first research as well as choose the best service provider (bank/money transfer company) for making any international remittances. The best option is selected based on the exchange rate, service fees and customer ratings.
Once the service provider has been selected, it will then verify the student’s KYC documents which will include: a government-issued ID card, PAN card, A2 form containing University’s bank account details and University’s offer letter mentioning the amount to be transferred, states The Indian Express.
All of this is to ensure that the transaction is carried out for a genuine purpose and not some illegal work.
Once the verification process is done, the student will be able to transfer the remittance amount to the service provider’s account.
After this, the service provider will book the “International Remittance” under the SWIFT network at the mentioned exchange rate. A message will be generated which will mention the student’s name and the reason behind the remittance. Keep in mind that the University’s bank account details will also be included in it.
This electronic message will show that the university account in the mentioned country will be credited with the amount which will be mentioned in the SWIFT message.
Things students should remember:
Students should remember that when transferring money abroad they should fill in the correct details of the beneficiary, which include the beneficiary name, address, branch, bank and account number in the A2 form, says a report by The Indian Express.
If any factual error is found, the transaction may get rejected and with this, the student could end up losing all the money.
Documents required for a student to transfer money to a foreign university:
– Valid Photo ID and address proof of the sender. (This can include a Passport/Driving License/ Voters ID)
– PAN card of the sender
– Passport copy of the student
– Purpose proof (This can include a university letter etc)
– A2 form which will contain beneficiary details such as name, account number, bank number etc.
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