Ever since the Government of India announced the demonetisation of Rs 500 and Rs 1000 banks notes on November 8, 2016, the pros and cons of this move by the government has been the sole topic of discussion to most of us.
Ceasing the usage of these notes as a form of legal tender has surely affected our daily routine. It has most definitely has had huge impact on businesses, trade, and many more sectors of the country. The effects of demonetisation cannot be understated.
One of the main question unaddressed by many was the impact of demonetisation on the education sector of the country!
We at Careerindia have put together some interesting views on the effects of this bold move of demonetisation of higher value currency on education. Read the complete story below.
Positive impacts on education sector:
- The decision of the central government to withdraw high-value bank notes to curb unaccounted cash will hurt education institutions that accept donations or capitation fees for admissions.
Negative impacts on the education sector:
- However, some in education sector feel that this effect on capitation will linger may be only for a year or two. After that black money hoarders will find one way or the other like Gold to launder their money into education sector.
Impact on higher education overseas
- Since some parents use black money to fund student expenses for those who are studying abroad, the flow of Indian students to foreign countries may also dwindle.
Some aspirants are of the view that the situation will settle down in six months and if that does not happen, the foreign education plan may get affected for a segment of aspirants. Since unaccounted cash is largely used for living abroad, the situation will worsen if the current atmosphere prevails even after six months.
Education-related overseas expenditure was $1.98 billion in 2015-16, according to Reserve Bank of India data and more than 250,000 Indian students were studying abroad at any given point of time.
That is it for the education sector. This is how we think demonetisation will affect education system in the country and those who are aspiring to study abroad. Let us know your thoughts in the comments section below.