Know the Impact of Demonetization on Higher Education
  • Home
  • Latests
  • Know the Impact of Demonetization on Higher Education

Know the Impact of Demonetization on Higher Education

Know the Impact of Demonetization on Higher Education

Right from the date when the Government of India announced on the demonetization of Rs.500 and Rs.1000 notes on the 8th of November 2016, the merits and demerits of the move are being highly evaluated by professionals from different sectors. Without any doubt, the cessation of the usage of these notes has brought about an impact on the daily life of common people. It has without any doubt affected the retail business and trade and even many other sectors in the nation.

Impact on the Higher Education Sector:

When talking about the impact of demonetization on different sectors, it becomes important to evaluate its impact on the higher education sector, which is one of the major sectors contributing towards the country’s economy. Let us now explore the impact of demonetization in the higher education sector:

Capitation Fee:

The Dean of Welingkar Institute of Management, Ms Madhavi Lokhande has shared that capitation fee is widely accepted in two segments in the country. They are the nursery admission and in professional higher educations. She added that for the first time, there is going to be a great impact on the capitation fee due to demonetization. It is further added that higher education institutions will find it hard to sell the so-called management quota seats.

Affordable Education to Meritorious Students:

As a positive outcome of demonetization towards higher education, it is expected that higher education is going to become affordable for meritorious students, which is very much similar to that of impact of demonetization on real estate market. It is something good and inviting, such that meritorious students are not denied of higher education just because they do not have money.

Professional Higher Education Institutions to Face Impact:

From the words of the chairman of Kerala-based Holy Grace Academy that runs a number of professional colleges Mr Raju Davis, it was stated that this move of government is surely having an impact on the higher education sector. He further added that seats are being sold at Rs.2 lakhs to even Rs. 2 crores, based on the streams chosen by students. For instance, while an MBBS seat costs between Rs.40 and Rs.60 lakhs in some higher education institutions, the PG in medicine MD seats costs around Rs.2 crores. In a similar manner, in the case of management quota seats for engineering courses, the cost is between Rs.2 and Rs.10 lakh. However, he further added that this impact on the fee collected will be on a temporary basis and will recover in the next couple of years. This means that meritorious students have better opportunities to get a seat in professional colleges in the next couple of years or so.

Impact of low or no Capitation Fee:

When the higher education institutions cannot collect any capitation fee, they cannot provide better quality infrastructure to students. Even there are chances that they cannot pay better salary to their professors, which can also have a negative impact on the quality of education.


From the overall picture, it is believed that demonetization will be beneficial for meritorious students, while it will be a negative thing for higher education institutions as they cannot fill up their management quota seats by collection a huge fee.

Ask our Counsellors


0 # Yash Gupta 2017-02-23
Now india will get educated
And illteracy will decrease
Thankyou modiji
Reply | Reply with quote | Quote
0 # Surbhi Jain 2017-02-14
No Comments!!!
Reply | Reply with quote | Quote
+1 # Shyam Older than three months
I am sure in next 2 years, fake admissions will reduce and general person can go for Medical, Engg etc without paying additional fee in cash other than Education Fee. Thanks Modi Ji
Reply | Reply with quote | Quote

Newsletter Subscription

way2college logo