Money has a vital role to play in the education sector. From paying fees to the institute, admission fees, transportation charges and much more. However, with the incoming of demonetization policy, money transfer activities have been sorted to a major extent. In addition, the system no more has to engage with cash management as online and machine transfer has made significant space in this demonetization phase. The demonetization is making a significant impact on the education sector in the following ways:
- The biggest noticeable impact being transparency in the admission process. Demonetization has made it difficult for the educational institutes to accept cash donations.
- Fall of interest rate in banks was a huge matter of concern and thus, making educational loans cheaper in comparison to earlier.
- Apparently, private tuitions or coaching centers use to prefer tuition fees in cash. However, demonization drive has forced them to accept payments in digital payments and other forms.
- Some of the expensive education can be made more affordable without the capitation fee.
Demonetization is a definitely to bring the most consistent use of payment through the banking system and increase in tax collection by India’s population. Hence, the tax collection should result in better infrastructure, increase in teacher’s salaries and overall lift in the education sector.