Educational Remittances made easy with IDFC FIRST Bank’s Pay Abroad Service

The dream of studying abroad is a significant milestone for many students, but managing the financial aspects of this journey can often feel daunting. From tuition fees to living expenses, students and their families face numerous challenges in ensuring timely and cost-effective payments to an overseas account. This is where IDFC FIRST Bank steps in as a reliable partner with its Pay Abroad service, simplifying the process of outward remittance and making international education more accessible and cost-efficient.

The Financial Challenges of Studying Abroad
 

Studying abroad involves significant financial obligations. Beyond tuition fees, students must consider living expenses, healthcare, travel, and more. Delays or errors in payment can result in late fees, exchange rate losses, or even impact the student's academic future. Studying at the top international institutions can be a significant financial commitment, and traditional banking methods often fall short in providing the required efficiency and convenience.

Here's an overview of the average annual expenditure for students in 2023:

All values and figures are indicative

Total overseas education expenditure Split (%):

IDFC FIRST Bank’s Pay Abroad Service – A Game Changer
 

IDFC FIRST Bank's Pay Abroad service offers a comprehensive solution to these challenges. With a focus on competitive exchange rates, zero transfer fees, and a user-friendly digital interface, the bank ensures that every outward remittance is smooth, transparent, and cost-effective.

• Competitive Exchange Rates

When transferring large sums of money for tuition and living expenses, even minor differences in exchange rates and fees can have a significant impact. IDFC FIRST Bank offers some of the most competitive exchange rates in the market, ensuring that you get the best value for your money.

• Zero Processing Fees

With IDFC FIRST Bank’s Pay Abroad service, enjoy zero processing fees on your remittances, ensuring that every rupee goes towards your academic goals without any hidden costs. Any intermediary charges involved in the transaction are absorbed by IDFC FIRST Bank.

• Quick and Secure Transfers

Time is of the essence when making international payments. With IDFC FIRST Bank’s Pay Abroad service, you can be confident that your remittances will reach their destination swiftly and securely. The bank's robust digital platforms allow you to initiate transfers at your convenience, track them in real-time.

• Seamless Digital Experience

IDFC FIRST Bank’s online banking and mobile app make it incredibly easy to manage your international remittances. Starting from setting up beneficiaries, the entire process is designed to be user-friendly, reducing the burden on students and their families.

• End to End Tracking

With IDFC FIRST Bank’s Pay Abroad service, you can track your outward remittance transactions end-to-end using the SWIFT GPI feature. This provides real-time updates and transparency, ensuring your funds reach their destination securely and efficiently.

• Support for Multiple Currencies

With support for 14 currencies, students can easily remit funds to beneficiaries worldwide.

The Outward Remittance Process with IDFC FIRST Bank
 

Here’s how IDFC FIRST Bank makes outward remittance in only 3 simple steps and hassle-free:

1. Select Pay Abroad: Choose the 'Pay Abroad' option under the Pay section of IDFC FIRST Bank’s online banking portal or mobile app.
2. Choose Currency: Select the currency and amount to be transferred
3. Enter Details: Provide beneficiary information, including the recipient's name, bank details, purpose of remittance (e.g., Travel for Education) and submit documents if applicable based on the purpose selected.

Understanding Tax Collected at Source (TCS) on Outward Remittance 
 

Under the Liberalised Remittance Scheme (LRS), certain outward remittances are subject to Tax Collected at Source (TCS) as per the Income Tax Act, 1961. The applicable TCS rates have been revised with effect from 1st April 2025. Here's a breakdown:

• Education Remittance Financed by Loan: TCS is not applicable, regardless of the remittance amount.
• Self-Funded Education or Medical Remittance: A 5% TCS applies only on amounts exceeding ₹10 lakhs in a financial year.
• Other Remittances (excluding overseas tour packages): A 20% TCS applies on remittances above ₹10 lakhs.
• Overseas Tour Packages: A 5% TCS applies up to ₹10 lakhs, and 20% TCS applies beyond ₹10 lakhs.

Please note that TCS is not an additional tax. You can adjust the amount collected as TCS against your total income tax liability when filing your Income Tax Return (ITR). If there is no tax liability, the TCS amount can be claimed as a refund.

For personalised guidance, please consult your Chartered Accountant or tax advisor.

Conclusion: Why Choose IDFC FIRST Bank’s Pay Abroad for Your Educational Journey?
 

In a world where every rupee counts, especially in the context of expensive international education, IDFC FIRST Bank’s Pay Abroad service offers a robust, efficient, and user-friendly solution for outward remittance. By choosing IDFC FIRST Bank, students and their families can focus more on achieving academic success and less on the complexities of financial transactions.