A day scholar is a student who comes to the institution for classes during the day and returns home afterwards, as opposed to a boarder (or hosteller) who lives on campus. The term is used by schools and colleges that offer both options, often with different fee structures for each. 'Day scholar' simply describes where the student stays, not how they are taught.
In Indian schools
Whether a student is a day scholar or a boarder usually changes their fee structure and sometimes their transport, so it is a useful attribute to hold on the student record. RaivatEdu can carry that on a custom field and attach the right fee plan, keeping day scholars and boarders billed correctly.