Starting from January 1 2024, the GIC amount required for international students in 2024, including those from India, will be CA$ 20,635 (₹ 12.83 lakhs) which is 2x the previous amount of CA$ 10,000 (₹ 6.22 lakhs).
Here is a communication ExTravelMoney received from one of our Canadian GIC partners;
This change has already been implemented and new students to Canada are now sending the increased GIC amount.
So what is GIC in Canada for students?
GIC stands for Guaranteed Investment Certificate. With respect to students, it is an account where they deposit money for their stay in Canada for a year and every month they'll get money from that account to meet their living expenses. The money deposited in the GIC account is treated as proof of funds.
Also Read:
All you need to know about GIC account in Canada for Indian Students
Below is a sample of a student payment for a CIBC GIC Account made in January 2024;
$ 20,635 (GIC Amount) + 196.03 (CIBC’c Program Fee) = CA $20, 831.03 (Total Payable Amount)
Take a look at how the new GIC amount of $20,635 works per year in the image below (CIBC)
Initial deposit in your Canadian bank account = $6190.50
12 monthly payments = ~ $1204 per month.
If you’d like to open a GIC Account, ExTravleMoney can help you with that;
(compare & choose from Canada’s top banks)
Why GIC Amount Increased in 2024 To $20,635?
The old minimum GIC amount of CAD 10,000 was fixed in the early 2000’s. During those times, $10,000 was sufficient for a student for a year.
Since then the cost of living in Canada has risen quite a lot.
In 2023, as per the Government of Canada, the Low Income Cut-Off (LICO) was $27,514.
This figure is considered as the poverty line in the urban areas of Canada. The new GIC amount is actually 75% of the 2023 LICO figure.
Thus taking into account the rising cost of living and considering 75% of the LICO figure, the GIC amount was increased in 2024 from $10,000 to $20,635.
When the GIC amount was $10,000;
- Students would receive $2000 in the 1st month
- $667 in the subsequent months.
As you can see, that’s much too low to meet the basic monthly cost of $1025 required for a student.
Now, the GIC amount is $20,635;
- Students would receive $6190.50 initial deposit (CIBC)
- $1204 per month in the first year in Canada (CIBC)
This would help them meet their living expenses without burdening them or affecting their studies in Canada.
Impact of GIC Increase on Indian Students
The increased financial requirement, colloquially known as “show money”, poses a new challenge for Indian students and their families.
1. Decrease in students to Canada
The increase in GIC is an added burden on the ever-increasing cost of international education.
Also, this development comes against the backdrop of recent diplomatic tensions between India and Canada.
These factors are likely to decrease the number of Indian students to Canada in 2024.
Also Read: A-Z Guide To Indian Students For Canadian University Admissions
2. Increase in cost of Canadian education
The doubling of the GIC amount is going to cost students Rs 6 lakhs extra for their studies.
The most affected will be those planning to pursue one-year PG diploma courses. The new total cost, including tuition and the increased GIC amount, can range from Rs 15 lakh to Rs 18 lakh compared to the earlier Rs 9 lakh to Rs 12 lakh. This is a 50 – 67% increase, which is quite steep.
In contrast, undergraduate students, already facing tuition fees of around Rs 15 lakh per year, will see a less drastic change, with total costs rising from Rs 66 lakh to Rs 72 lakh. This is just a 9.1% increase.
3. Paying more tax on money transfers abroad (TCS)
Previously, the GIC amount was under Rs 7 lakhs, which meant that Tax Collected at Source (TCS) was not applicable to these financial transactions. However, with the revised GIC amount crossing Rs 12 lakhs, Indian students and their families will now be subjected to TCS on the transfer of GIC funds.
| To know more about TCS on study abroad remittances, read our article; Foreign Remittance Gets Costlier: 20% TCS Applicable |
TCS on New GIC Amount of CA$ 20,635
Tax Collected at Source (TCS) on foreign remittance is applicable for all money transfer abroad transactions from India. Here are the TCS rates for education-related remittances.
| Education Remittance | TCS |
| Below Rs 7 Lakhs | 0% |
| Above Rs 7 Lakhs | 0.5% (if the source of funds is an education loan) else 5% |
Earlier, a student needed to show CA$ 10,000, but now, it’s a whopping CA$ 20,635. This increase has a significant financial impact on TCS paid by Indian students.
- Earlier Requirement (CA$ 10,000):
- Typical Bank Rate: Rs 64.65 per CAD
- Total Cost: Rs 6,46,500
- TCS (below Rs 7 lakhs): Rs 0
- New Requirement (CA$ 20,635):
- Typical Bank Rate: Rs 64.65 per CAD
- Total Cost: Rs 13,34,053
- TCS (0.5% with study loan): Rs 3170
- TCS (5% without study loan): Rs 31,702
As you can see, taking a study loan will slash your TCS liability by 90%!
So another added effect of GIC being increased is that more Indian students will opt for study loans to fund their education in Canada.
How ExTravelMoney Can Help With Your GIC
1. Assistance in GIC account opening with Canadian banks
We can open a GIC account for you in a reputed Canadian bank of your choice from India itself.
Our experienced team offers guidance and support, ensuring a smooth and successful account opening experience.
Also Read: GIC Comparison; Which Bank is Best For Indian Students in Canada?
2. Save money on GIC transfers with “wholesale” exchange rates
| Date | Google Rate | Average Indian Bank Rate | ExTravelMoney.com Rate |
| 02 Jan 2024 | 63.01 | 64.65 | 63.51 |
| Total | $20,635 | Rs 13,34,052 | Rs 13,10,528 |
| With ExTravelMoney.com you save more than Rs 23,000 on your GIC money transfer | |||
As Canada increases the GIC amount, ExTravelMoney offers a solution by providing “wholesale” exchange rates cheaper than your average Indian bank rates.
We can help with both your GIC fund transfer and Canadian University Fee Payment.
3. Minimized risk of GIC rejection
At ExTravelMoney, we understand the intricacies of the GIC account opening process and the challenges it can present. Our seasoned team specializes in navigating these challenges, significantly minimizing the risk of GIC rejection.
We stay updated on the latest banking regulations and requirements for GIC accounts in Canadian banks, ensuring that all applications are accurately filled and submitted.
Also Read: 5 Reasons for Canada Student Visa Rejection & How To Avoid It
4. Expert guidance on RBI compliance, KYCs & TCS
When you do a money transfer abroad from India, no matter which service you choose, even your own bank, you’ll have to adhere to RBI’s remittance rules, KYC compliance and pay applicable TCS.
We provide unparalleled expertise in ensuring full compliance with RBI guidelines and KYC (Know Your Customer) requirements. Moreover, we assist you in obtaining the TCS paid certificate. It allows you to claim back the TCS amount or adjust it against your tax liabilities (if any) when filing IT returns. Our experienced executives offer personalized assistance to simplify these processes for you.
5. Superior customer service for smooth money transfers
ExTravelMoney prides itself on providing customer service that exceeds what banks typically offer. Our team is dedicated to assisting you through every step of the money transfer process, ensuring a hassle-free experience.
You can read more about what our customers say;
In conclusion, while Canada’s decision to double the GIC amount in 2024 from $10,000 to $20,635 presents new hurdles for Indian students, the right financial partners and strategies can help navigate these challenges effectively. With companies like ExTravelMoney offering tailored solutions, the dream of studying in Canada remains within reach, despite the increased financial demands.
Also Read: The Complete Guide For First Time Indian Students In Canada
Subhash is the head of content at Extravelmoney.com. Subhash’s contributions to content involve demystifying complex financial topics like currency exchange and international money transfers, making them accessible and engaging for a wide audience. His efforts are integral to ExTravelMoney’s mission of providing transparent and convenient financial solutions.