The US embassy on Tuesday announced scrapping of visa issuance fee for students, reduction of such charges for other categories and adjustment in consular exchange rate - all to be effective from October 11.

The US embassy and the Consulates General in the country will no longer collect issuance fees for students, exchange visitors, transit and crewman visas issued to Indian nationals, an American embassy release in Delhi said.

Fees for issuing other visitor and business visas will drop from $75 to $50 per visa. At the same time, an adjustment to the consular exchange rate used will further reduce all rupee denominated costs of applying for visas and passports at the US missions.

It was made clear that application fee was not being eliminated and must still be paid for all visa applications that currently required the payment of an application fee. These include applications for students, exchange visitors, transit and crewmen visas and most other non-immigrant visas.

The US consular sections will also adjust the exchange rate used for consular transactions from Rs 49 to Rs 46 to the dollar. This adjustment will lower the rupee price of all consular transactions, including services for American citizens.

From October 11, the $100 visa application fee will require a bank draft amounting to Rs 4600 made out to the US embassy or the Consulate General.

The American embassy clarified that applicants for visas that still required an issuance fee should also submit a second demand draft (of Rs 2,300) made out to the embassy or Consulate General to cover the $50 issuance fee.

However, applicants for student, exchange visitor, transit and crewman visas no longer need to submit this second bank draft.

US passport applications for children under 16 will decrease to Rs 3,220 and adult passport renewal applications will cost Rs 2,530 while first time adult passport applicants will have to pay Rs 3,910. A single notary seal will cost Rs 1,380.

US law requires virtually all visa applicants to pay a non-refundable $100 application fee.

The fee reductions announced on Tuesday are being made to bring US visas in line with the $150 visa fee charged to US citizens by the Indian government. Since India does not charge more than $100 for student visas and for other categories, the issuance fee was being eliminated.