Opening a Blocked Account in India
Indian students are one of the largest groups of foreign students in Germany. According to official education statistics as of Wintersemester 2017/2018, 17,294 Indian students were attending a German university, the second-highest number among international students in Germany.
One of the greatest challenges these students face about studying in Germany is opening a blocked account, though it is the most common route they choose to prove their financial standing.
Until recently, Deutsche Bank and Kotak Mahindra were the only and most frequent options Indian students had to open their blocked account for studying in Germany. But with many changes and new regulations being introduced these options have become less attractive.
Based on Indian students’ feedback, opening a blocked account either through Deutsche Bank or Kotak Mahindra has often led to significant delays costing the students a lot in the entire university application process.
Luckily, the days when Indian students had to go through such a long and daunting process have finally come to an end. Expatrio provides an easier way to open a German blocked account from India.
Moreover, it’s more efficient, less time consuming, less nerve-wracking, cheaper and safer option for Indian students wishing to apply for a student visa to the German embassies/consulates in India.
Instead of having to go in-person to a branch of the Kotak Mahindra Bank or apply to Deutsche Bank through the German embassies/consulates in India, students can apply online for a blocked account at Expatrio.
Expatrio is a large company that offers a variety of services to foreigners willing to visit Germany for different purposes, including education, guiding and carrying much of their activity to enter and adapt in Germany.
One of many services Expatrio offers to international students in our case is the assistance in opening a blocked account in Germany. As such, they serve as an intermediary party between you and a bank in Germany where your blocked account will be created. In this way, you make the whole process less intimidating because it can all be done using the Internet in contrast to other old-fashioned methods we described above.
Below we have given a head to head comparison between opening a blocked account in Germany through Expatrio and Kotak Mahindra Bank in India.
Expatrio Kotak Mahindra
Online application Yes No
How long it takes? Less than 24 hours. 15 – 25 days
The required deposit €11,208 €11,208
A process to be carried in Germany No Yes
Required documents Few Many
Can I get rejected? Unlikely Yes
If you have already decided to open a blocked account through Kotak Mahindra bank in India you need to follow the steps explained below.
How to Open a Blocked Account at Kotak Mahindra Bank
First, you need to choose the branch of the Kotak Mahindra bank in India, where you’re going to apply for opening a blocked account.
Note that this stage is very important in regard to the fact that not every bank branch has its staff trained to understand how German blocked account function and what are the procedures of issuing one to a prospective student. For that, we suggest you always focus yourself on big cities where chances are higher, that the bank’s staff is recruited to understanding frozen accounts.
By the time you go to the Kotak Mahindra bank to initiate a blocked account application, you need to have collected a bunch of necessary documents.
What Are the Required Documents to Open a Bank Blocked Account at Kotak Mahindra
The list of documents you need to provide when applying to open a blocked account in Kotak Mahindra Bank in India are as follows:
Documents of your Savings Account Opening Form and Know Your Customer (KYC)
A copy of your passport.
The University’s Admission Letter.
The email of Indemnity in the bank’s format.
Your request to change your status from resident to non-resident, and your Resident Account to NRO.
Outward Remittance Form – the part about the beneficiary account and account details will be left blank.
IP Cheque for INR value equivalent to €11,208. Notice that this amount exceeds the limit set by the German government to cover any possible change in rate exchange between the time when money is deposited and when you have the right to request a withdrawal in Germany.
Student Request Letter – your declaration to allow Kotak Mahindra Bank to apply a Debit Freeze in your blocked account until permission to withdraw money overseas and sharing your blocked account information when landing in Germany.
Note that during the procedure of applying for a blocked account in Kotak Mahindra Bank, you need to bring an email of indemnity. One of the bank officers there will give you the bank’s format and once you fill it properly, they will put a stamp on it. Its cost varies in regard to stamp duties in different countries and you’re going to use this document in Germany as proof that a third party (in this case the Kotak Mahindra Bank) covers any possible loss throughout the process.
Also, it helps the bank officers in Germany to confirm you have a legal bank account and they can operate with it.
A week later the bank will send you an email to confirm your blocked account is ready and will state the exact amount of money you have deposited.
How Long Does it Take to Open a Blocked Account at Kotak Mahindra Bank?
The whole process of opening your blocked account in Kotak Mahindra Bank is supposed to take around 15 to 20 days.
But, hold on. The process hasn’t yet finished. Once you land in Germany you need to open a bank account in Deutsche Bank using their online application portal. You have to fill an application form properly and upload it along with other required documents as described in the online portal.
As soon as the DB receives your application they will send the IBAN (the number of your bank account) and BIC (equivalent to Swift Code). You can choose to receive these numbers by mail or by post if you have registered the address of your residence in Germany.
After Deutsche Bank confirms the opening of your bank account, you have to request Kotak Mahindra Bank in India to transfer your money to your bank account in Germany and withdraw them as regulated.
Around the time they receive your email, they will reach you over the phone to ask you again about the details of your account so always keep the IBAN, BIC and your passport number close to yourself. Once they collect your information the transfer will be processed. This can account for around 4 to 5 days.