The government under the leadership of our honorable Prime Minister Mr. Narendra Modi announced a demonetization move. The move involved stashing out 500 and 1000 rupee notes altogether. The move has come into effect on the 9th of November 2016. About 86% of cash transactions revolve around the 500 and 1000 rupee notes.
Mr. Modi, however, zeroed in on the demonetization move, in order to avoid hoarding of black money and to avoid funding terrorist activities. While the move to convert all money into cleaner notes is still going on in the economy, let us move on, to find out, what is the overall impact of the move on the education system in India.
A typical slow-down in the growth rate of private schools
You need hot currency in order to follow up with the real-estate market. You may want to acquire newer land, in order to expand your school premises. You may want to expand the playing area for the children or expand the width of the swimming pool. Other medium to short term educational plans include those of -
Acquiring regulatory clearances
Investments on fund activities to coordinate co-curricular and extra-curricular activities
Siphoning of money on education
Demonetization can impact these kinds of activities, on the whole
Online payments will be made mandatory
The main objective of demonetization is to head the country into typical cash-less economy. To further reiterate demonetization effects on education in India, one would say that more and more schools will now be making online payments a mandatory process. In other words, you can pay your school fees via online means. You can also purchase books, notebooks, school bags, water bottles and other stationery products through an online portal.
Increased visibility of online tutors, private tuition's, and coaching centers
Running a school is more of a labor-intensive process. You need free-flow cash to carry out day to day activities. However, with the current demonetization move, more and more schools will be converted into online coaching centers. Teachers’ salaries will be credited online itself. Cheque payments or DD’s will be encouraged as against paying the money via cash. Coaching centers which are a parallel USD 23 billion are expected to rise to USD 48 billion, by 2017. The reason is more and more schools will be going online as against the brick and mortar kind of an establishment.
Spending on research activities will reduce considerably
Research activities will definitely be impacted on account of lesser cash flow towards spending on marketing activities. New projects will, therefore, be held back. In fact, all kinds of facile investments will reduce considerably.
Internationally collaborated schools will be on the rise
More and more international money will start flowing into the Indian economy. The deficit inflow of Indian currency will encourage more and more NRI’s and international organizations to collaborate with Indian schools. You can thus conclude that the demonetization impact will facilitate internationally collaborated schools. This is definitely a very good sign, for the Indian economy. As far as the demonetization effects on education in India are concerned, let us look at these from a slightly different point of view.
Demonetization is the move carried out by the ruling Govt. to curb circulation of black currency and to put a full-stop to anti-social terrorist activities from flourishing in India. But what has the black money menace got to do with the educational system in India?
Well, you have got an answer to this. Equate currency in terms of mark sheets or score cards. Yes, 51% of fake score cards or fake certificates around the world were circulated by some of the notorious Indian universities. There is also issuance of fake certificates via websites. How do you curb this?
You can think of making all degree certificates void unless the Universities which have issued the same, themselves certify that the students have earned their degree certificates by fair and just means. Else the universities can conduct digital examinations which can pave way for a better degree of transparency as far as correcting the answer sheets and grading students accordingly, are concerned.We have thus seen several aspects of demonetization impact pertaining to the educational system in India.