By Gagan Malhotra
Last year, over 750,000 Indian students headed overseas to pursue higher education. Yet, for many, foreign exchange remained an afterthought, a task often completed just before departure. In reality, it is a constant companion for the next three to four years.
Indian students can end up paying Rs 1.5-2 lakh extra each year due to hidden bank charges, card fees, and currency markups. Over a four-year course, this adds up to Rs 6-8 lakh — enough to fund multiple semesters of living expenses.
Pre-departure expenses
The first major overseas expense is tuition or a housing deposit. These payments are often rushed through traditional bank transfers, which typically include a 3-3.5% markup on the interbank rate, along with transfer fees, SWIFT charges, and beneficiary bank deductions.
On a Rs 25-lakh tuition payment, this could mean over Rs 85,000 lost in hidden costs. By contrast, using a digital forex service that charges a 0.5 -1% spread reduces the cost to Rs 12,500-25,000, potentially saving Rs 60,000-70,000 on just one transaction.
Everyday spending
Once students settle abroad, recurring expenses like groceries, dining, public transport, and mobile bills begin to add up. Managing these using the right payment tools can make a big difference. Prepaid forex cards loaded in India with foreign currency at a locked-in rate help students avoid the 3–3.5% foreign transaction fee typically charged by Indian credit or debit cards. These cards are also reloadable, giving 24×7 forex access to students.
Many student-focused cards further waive issuance, reload, and ATM withdrawal fees, and offer added perks like international SIM cards, ISIC cards and merchant discounts.
To illustrate, withdrawing cash just four times a month using an Indian debit card could result in Rs 2,000 or more in ATM charges alone. A more efficient approach is to use a zero-markup forex card for regular spending. Once students are settled, opening a local bank account further streamlines recurring payments like rent, especially when paired with a reliable, low-cost remittance channel from India.
Currency-savvy habits
Students can benefit from planning large transfers when the rupee is relatively stronger. A 1% improvement in exchange rate on a Rs 5 lakh transfer means a saving of Rs 5,000. Equally important is avoiding frequent, last-minute reloads or fragmented withdrawals that carry added fees. Budgeting reloads in well-planned intervals, paying in the local currency, and tracking all transaction charges are simple but effective habits that lead to long-term savings.
Digital platforms that offer transparent rates, real-time tracking, rate alerts, and 24×7 service provide the right tools for students and parents to manage forex confidently.
The writer is chief operating officer, BookMyForex.com.
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