• Akshay.K
• Sidharthan
• Ciril Ando
• Asarali.S

One of the key advantages of demonetisation is that it can create a level-playing field for aspiring and deserving students, who are unable to pay capitation fee (donations), which has been prevalent in the Indian private education system. Money in the education ecosystem flows in many forms. Imagine a student paying the fee to an institute. This fee has multiple components—admission fee, tuition charges, transportation charges, hobby activities fee, money for uniform, to name a few. The aggregated amount paid by parents is disbursed in different bank accounts based on the various fee elements mentioned herewith. This payment by parents is in part cheque or demand draft or digital, and in part cash. Here upon, with the demonetisation of Rs 500 and Rs 1,000 bank-notes last month, a lot of hassles will get sorted for both the institutes as well as parents. On parts of both ends, the cash management gets eliminated and there is total management system accountability for the money trails. Auto debit to the payer account and credit to the receiver account ensures that there are no chances of any revenue leakage in the system. In addition, it will ensure that capital expenditure and operational expenditure accountabilities are assigned to the right heads rather than facing issues of reconciliation. One of the key advantages of the demonetisation step is that it will create a level-playing field for aspiring and deserving students, who are unable to pay capitation fee, which has been widely prevalent in the Indian private education system. Capitation fee is a transaction whereby an institute that provides educational services collects a fee that is more than what is approved by regulatory norms. In simple words, this is the money paid to the educational institute by parents of such students who have underperformed in their academics, but who get admission based on capitation fee. It is commonly called donation, and some times the amount is more than 100% of the usual fee.

Indian private education system, digital payment system

"IMPACT OF DEMONETISATION IN EDUCATION SECTOR", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 3, page no.229-236, March-2019, Available :http://www.jetir.org/papers/JETIRAT06031.pdf

"IMPACT OF DEMONETISATION IN EDUCATION SECTOR", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 3, page no. pp229-236, March-2019, Available at : http://www.jetir.org/papers/JETIRAT06031.pdf