Kotak Mahindra Blocked Account- Opening Procedure in India

If you are an international student planning to study in Germany, one of the essential steps in your visa application process is opening a blocked account. A blocked account is a special type of bank account that allows you to deposit a certain amount of money, which will be accessible to you in monthly installments while you study in Germany. 

Opening a blocked account is a crucial step for international students planning to study in Germany. Kotak Mahindra Bank offers a blocked account service tailored for students heading to Germany, making the process smoother and more accessible. This article will provide an overview of the Kotak Mahindra blocked account, including its purpose, the steps to open one, required documents, and important considerations for students.

A blocked account is a special type of bank account where a specific amount of money is deposited and held for the duration of your studies. This ensures that you have enough funds to cover your living expenses while studying in Germany. The current requirement of blocked account to study in Germany is approximately €11,904 per year, which can be withdrawn in monthly installments of around €992. Kotak Mahindra Bank stands out as a reliable option for opening a blocked account due to its understanding of the requirements for international students and its efficient processes. The bank does not charge any fees for maintaining the blocked account, and the funds remain secure until you need them.

What is a Blocked Account?

Every year, according to the prevailing economic conditions as well as the relevant fees structure, every university would request that a monthly sum be provided for the student to facilitate his living expenses in the country as well as for completing his education, this money is deposited in a Blocked Account. Starting January 1, 2022, this amount has been set at €10,332 for an entire academic year. This amount roughly translates to €861/month. For a student, this amount would cover accommodation, living expenses, and even travel pass costs.

A Blocked Account is a mandatory requirement and simply put, is a closed bank account in a German Bank. It is called closed because it comes with a standing instruction on the maximum amount the student can withdraw on a monthly basis – €992 (as suggested).

Quick links:

Steps to Study in Germany for Free	Options to Study in Germany after Class XII
Student Visa Guide for Study Abroad	Reasons for rejection of Germany Student Visa

How to open a Blocked Account?

A student would need an admission letter from a university in Germany to open their account. While you can open this account in any bank in Germany, in India, the student can open a Blocked Account with any branch of the Kotak Mahindra Bank across the length of India. Once the student travels to Germany, the account is transferred to a local branch near the university. Candidates should keep in mind that this is a mandatory practice applicable to all international students who choose to pursue higher education in Germany.

Quick Facts about your Blocked Account

Here are a few facts for candidates looking to open a Block Account for study in Germany.

• The money deposited in the Blocked Account would be eventually transferred to a local branch near your university – either to a local branch of Deutsche Bank in Germany or any local bank by Kotak Mahindra Bank.
• Though the requisite amount for the Visa Application is €10,332 the Kotak Mahindra Bank might require you to deposit an extra amount as exchange rate and service fee. This, however, is subjective and you are advised to contact the nearest bank branch for clarity.
• A student can only withdraw €861 per month from the blocked account.
• A Blocked Account may take as long as a month at times (during admission season) to open. A student is hence advised to open the same at the earliest.
• Once the account is opened, the bank would send a confirmation mail with the details to the German Embassy/ Consulate. This is essential for the student to get a German National Visa.

Quick links:

Student Loans for Germany: All you need to know	Student Visas for Study Abroad
Study in Germany: Student account of application and admission process	Education Loan for Studying in Germany: Everything You Need to Know

Why Choose Kotak Mahindra Bank?

Kotak Mahindra Bank is one of India's leading private sector banks and offers a reliable and efficient process for opening a blocked account. Here are some reasons to consider Kotak Mahindra for your blocked account:

• Understanding of Requirements: The bank staff is trained to handle blocked accounts and understand the specific requirements for students going to Germany.
• No Maintenance Fees: There are no fees for maintaining the blocked account, and the balance earns interest at prevailing rates.
• Safety and Security: Your funds are secure, and if your visa application is rejected, you can recover your money by providing the necessary documentation.

How to Open a Blocked Account at Kotak Mahindra Bank?

Steps to Opening a Blocked Account with Kotak Mahindra Bank in India – Candidates are informed that a Blocked Account is a necessary criterion for students wanting to pursue higher education in Germany. Here is a step-by-step student guide to opening a Blocked Account with Kotak Mahindra Bank in India. 

Candidates are required to choose a branch of the Kotak Mahindra Bank that is closest and most convenient to them for the opening of their Block Account. Candidates should keep in mind that not all branches are equipped to handle Blocked Account functioning. Hence, it is important that the candidates check with the concerned authorities on whether they deal with such types of bank accounts where the bank employees understand the functioning of a frozen account.

Documents required to open a Kotak Mahindra Bank Blocked Account includes

• University Admit Letter
• Email of Indemnity in bank format.
• Outward Remittance Form
• A copy of your passport
• Documents of your Savings Account Opening Form complete with Know Your Customer (KYC)
• Request to change your status from resident to non-resident, and your Resident Account to NRO.
• IP Cheque for INR value equivalent to €10,332+. Candidates should check this amount as a lot of times other important changes such as conversion rate is applied to this.
• Student Request Letter to open a Blocked Account.

What happens after opening a Blocked Account with Kotak Mahindra Bank in India?

Once the candidate has successfully submitted his documents. The bank would get in touch with him with an email to confirm his bank account and it would also state the fund amount deposited in the account.  Candidates can expect the entire process of opening a Kotak Mahindra Blocked Account to take anything between 15-20 days. This is the entire process of opening a Kotak Mahindra Blocked Account.

Once your account is ready in India with the requisite funds, all the student has to do on landing in Germany is open an account with a local bank preferably Deutsche Bank in Germany and link the two accounts together. On successfully linking the two accounts, Kotak Mahindra would send the funds to the local German bank for you to withdraw as per the rules of the account. The process of transferring your funds from the Kotak Mahindra Bank in India to the local bank in Germany could take up to 4-5 working days.

It’s always good to contact your Kotak Mahindra bank officials for further details on the same. For more information feel free to write to us in the comments below.

Also, read: Scholarships to Study in Germany