Banon high-value notes to curb unaccounted cash, will hurt education institutions that charge capitation fees for admissions
A Study Report with Concern by: Harbans S Nagokay.
ammu, November 19
The queues before banks will ease in a few days, but; currency note ban seen hurting education institutes charging capitation fee. Accepting capitation fees will become difficult because of the demonetization drive, say industry insiders and experts. The centre’s decision to withdraw high-value bank notes to curb unaccounted cash will hurt education institutions that charge capitation fees for admissions.
Capitation fee is widely accepted in two segments of the education system, nursery admissions and professional higher education. “For the first time, it is going to get impacted in a big way,” said a school master from remote area of R.S. Pura. According to majority of middle class academics, this move is expected to make education affordable to praiseworthy students akin to what it will do with the real estate market,and institutions will find it difficult to sell the so-called management quota seats, now on-ward. And, otherwise also the so-called high profile tutorials (running a chain of obligatory-required tutorials)duly meant as major part for well-off section from urban areas,it is said that the government move will impact thisexceptional sector, where 9th -12th class students being charged from Rs. 2 – 4 lacs packages, may also face inquiries very soon.
Then, may not become possible for many parents to educate their wards by paying bundles of black money as white channels will be made them accountable now.Everyone knows, that the key takeaway from this demonetization move is that there is a formal plan to curb the Indian theory ‘you can buy everything for cash’ and education sector was not immune to it.
Yes! According to experts, certainly there will be some change that definitely take place in our country, where academic seats are being sold for Rs2 lakh to Rs2 crore, depending on the streams and specializations, while an MBBS seat goes for between Rs40 lakh to Rs 1 crore (major part in cash) in some medical colleges, a MD (doctor of medicine) seat has a price that ranges up to Rs2 crore. Similarly, engineering and management stream seats have a rate between Rs2 lakh and Rs10 lakh each, reports however, exposed that “some in the education sector believe that there is a cost to what has happened but its impact may be temporary may be for a year or two.”And after that? “Those who believe in black money will find some other means. Gold may replace cash in the capitation fee market,” sources revealed. Overall, the sector will feel the heat and may control fee by states and no capitation fee may create a situation where the quality of institutions may suffer as-well.
The flow of Indian students to foreign countries may also dwindle in the coming months because black money is also used to fund student expenses when they are studying abroad. There is a panic among money making brokers, those might be receiving several queries from aspirants on the issues and high net worth individual clients are more worried than normal middle class families, said an education consultant of Jammu, who declined to be named. A section of students also revealed that the move may also impact the US and the UK education market as these are top destinations for rich Indians, and the fees are relatively high. The unaccounted cash is largely used for living cost abroad and this move will impact the decision of some,then, 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.Some embassies in New Delhi are closely monitoring the development. “Indian students in the US was at a record high in 2015-16. Students are going to US because they see value there. The demonetization issue is now talk of the country and we are observing the space,” revealed Matthew Asada, First Secretary for Exchanges and Education, at US embassy in New Delhi.
Any way; at the end, as there is chaos and turmoil in other parts of country due to demonetisation of `500 and `1,000 notes, people in Kashmir have remained mostly unaffected and no long queues are being witnessed at banks or ATMs. People in Kashmir are exchanging the old notes at bank branches with ease and without having to face any inconvenience. And, big news is that ‘Kashmir witnessed a Normal’ Weekend after Nearly Four Months as separatists had announced a two-day relaxation in the strike in Kashmir beginning today.