It has been two years since Narendra Modi's bold move, demonetisation, starting from the midnight of November 8, 2016, after making a surprise announcement on television that INR 1,000 and INR 500 currency notes would no longer be a legal tender. The change was much needed for a developing country like India and people have accepted it with a kind heart, though they experienced heavy jostling during the times when they faced a cash crunch.
Apart from people, many industries and sectors also became victims of demonetisation and registered a sluggish growth, specifically during the cash crunch. The education sector also experienced both pros and cons during the cash crunch. Let's explore some of the positives that took place during demonetisation.
Keeping Capitation Fee At Bay
The most important positive impact with the demonetisation was the reduction of the capitation fee for admission. During demonetisation, it becomes extremely difficult for educational institutes to collect the capitation fee.
Transparency In Transactions
The cash crunch during demonetisation drove people to transfer tuition fee through online banking, DD or cheque which helped the education sector to turn transparent. After two years of demonetisation, many decided to prefer this mode of payment.
Multiple Ways To Support Tuition Fee
With the impact of demonetisation, many students and their parents started exploring multiple ways to finance the study. This opened doors for the post-education payment option which is similar to education loan. The banks also reduced the student loan rates during this period and continue the same after two years of demonetisation.
Importance Of Scholarships
Demonetisation has emphasized the importance of scholarships for students during the exchange of high-denomination notes. With the impact of the cash crunch, many students opted for scholarships and started giving importance to it.
Increase In Job Opportunities
The demonetisation move had benefited the e-commerce industry more. The e-commerce companies recorded a steep increase in growth rate during demonetisation and expanded its human resource. Apart from e-commerce companies, many start-ups related to digital marketing also registered a positive growth and provided employment.
The Prime Minister's intention behind demonetisation is to keep the counterfeit currency notes, black money and corruption at bay. To fight against these hindrances, the decrease in unemployment and quality education are the most important weapons to reach success.
These were some of the positives impacts of demonetisation on the education sector and we prepared the list based on what we heard during the exchange of high-denomination notes. We welcome you to share your opinions on demonetisation in our comment box.