Demonetisation hits fee collection in private schools


Managements of private schools are a worried lot following demonetisation as it impacted payment of salaries to their staff.

Due to restriction in withdrawal of funds from bank accounts, many parents had not paid school fee, which had put the managements in a quandary as they were unable to take up maintenance of schools and pay salaries.

The salaries to school teachers were paid before the announcement of demonetisation on November 8. Till date, majority of schools have not paid salaries to their teachers due to non-collection of fees from the students.

Some corporate schools with a number of branches had paid two months’ advance salaries to their staff with old currency notes in November itself.

Majority of the school managements complain that they were unable to run the schools as they were not getting fees from the students in spite of repeated reminders. “We are unable to get private loans also to give salaries to the teaching and non-teaching staff and others following demonetisation. We are unable to pay monthly rentals for school buildings, power bills and clear property taxes”, said a school correspondent (manager) in Karimnagar town.

Vivekananda Vidyanikethan educational institutions chairman S Komuraiah said they were pleading with the parents to pay at least monthly fees instead of term fees, but in vain as they do not have adequate cash. The situation is even worse in residential schools as the management was struggling hard to provide quality food to hostellers due to cash crunch and are buying essential commodities and vegetables on credit, he complained.

Only a few private schools, who have bank accounts and showing Income Tax returns were accepting cheques and introduced swiping machines for collection of fees. Most of the private schools without bank accounts and do not show IT returns are a worried lot over the collection of fees from parents.

Telangana Recognised Schools Management Association (TRSMA) state general secretary and correspondent of a private school Y Shekhar Rao said that private schools are facing crisis due to demonetisation as they were not getting fees in cash. As most of the private schools do not have Income Tax assessment and bank accounts in their name, TRSMA is requesting school managements to open bank accounts and show income tax returns to avoid problems in collection of fees.

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Printable version | Jan 23, 2020 9:59:13 AM |

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