Indian Spokesman Correspondent
HAMILTON: The demonetisation has affected International student’s recruitment from India since there are maximum daily limits for banks to exchange money, which is creating delays in student loan processing for international students, and the international agencies including Immigration Australia, and Immigration New Zealand’s ability to verify financial documents and process visas.
Study abroad for Indian students has become relatively more cost effective as the Indian rupee has dropped more against the Euro and USD than the NZD and AUD.
As part of an anti-corruption drive, the Indian Government announced in early November that it was replacing 500-rupee notes (approximately NZ$10) and removing 1,000-rupee notes ($NZ20) from circulation. Together, these account for approximately 86 per cent of Indian rupees in circulation.
The government has implemented a deadline of 30 December for people to exchange the old currency notes at banks.
According to Education New Zealand (ENZ), the supply of ‘grey money’ to finance significant purchases will be reduced, including for education which may affect study abroad numbers. “However, student loan costs may fall as a reduction in overall money supply (some grey money will not be exchanged) will reduce loan interest rates and inflation. It’s too soon to tell the significance of these impacts, but it’s more likely that rural and agricultural cash-based regions such as the Punjab will be affected,” adds Education New Zealand (ENZ)
ENZ’s Regional Director South, Southeast Asia and the Middle East, John Laxon, said the repercussions of this change are still playing out.
“The changes are likely to result in some delays in Indian student applications over the next few months for all countries, while any significant longer-term impacts are still to be worked through,” said Laxon.
“We have provided an update to education agents to keep them informed of New Zealand’s student visa approach. We will monitor visa numbers with INZ and keep education providers updated,” added Laxon.