Indian, Canadian banks join hands to offer financial services to students from India

The partnership was announced by Canada’s Toronto Dominion (TD) Bank and India’s HDFC Bank. India is the largest source country for international students in Canada

Toronto: Leading banks in the two countries have launched a partnership to offer financial services to students from India coming to higher education institutions in Canada.

Students from India at an event at the University of Toronto in Canada. (Supplied photo)

The partnership was announced on Wednesday by Toronto Dominion (TD) Bank and India’s HDFC Bank. Under the partnership, HDFC will refer students contemplating entering a Canadian institution to TD, so they can comply with the requirements for the study permit pathway announced earlier this year by Immigration, Refugees and Citizenship Canada (IRCC).

The referral will pertain to TD’s International Student GIC Programme. A release from TD explained, “As part of the Canadian government’s requirements to apply for an expedited study permit, students are required to provide proof of financial support, which is accomplished via a Guaranteed Investment Certificate (GIC) from a participating Canadian financial institution. The TD International Student GIC Program is designed to enable students to open accounts digitally and help them meet their study visa and living expense requirements.”

GICs are similar to fixed deposits or FDs offered in India.

India is the largest source country for international students in Canada, accounting for over 425,000 study permit holders last year.

“With this expanded relationship, HDFC Bank and TD can provide the financial offerings that will make for a smoother transition to the Canadian banking environment,” TD’s Executive Vice-President of Canadian Personal Banking Sona Mehta said.

“The association is designed to support the study permit requirements of Indian students planning to study in Canada. The curated programme also offers a wide range of financial benefits to amplify their living experience while studying there,” HDFC’s Group Head Retail Branch Banking Smita Bhagat added.

The GICs can be opened through an online process, without application fees and will start earning interest even before the student arrives in Canada, the release said.

In December 2023, IRCC announced that for new study permit applications received on or after January 1 this year, a single applicant will “need to show they have CA$ 20,635 (approximately ₹12.7 lakh), as against CA$ 10,000 (about ₹6.14 lakh) earlier. Explaining the increase, it stated, “The cost-of-living requirement for study permit applicants has not changed since the early 2000s, when it was set at $10,000 for a single applicant. As such, the financial requirement hasn’t kept up with the cost of living over time, resulting in students arriving in Canada only to learn that their funds aren’t adequate.”

The cost-of-living fund is deposited through wire transfer at a designated Canadian bank, in the GIC account.