PROJECT REPORT on

CUSTOMERS PERCEPTION FOR CARDS UNDER SBI

BACHELOR OF BUSINESS MANAGEMENT

UNDER THE GUIDANCE OF SUBMITTED BY:

GUIDE CERTIFICATE

This is to certify that has prepared his project report entitled ‘CUSTOMERS PERCEPTION FOR CARDS UNDER SBI’, Patna under my supervision. To the best knowledge he has exposed his good effort to make his project more analytical and purposeful.

His attitude and interest shown in the completion of project report is highly appreciable.

I wish him success in all his future endeavors.

PROJECT –IN-CHARGE

STATE BANK OF INDIA

INTRODUCTION OF PROJECT:-

PROJECT TITLE:- “Concept of Plastic Money

and Consumers Perception Towards it”

PROCEDURE USED FOR CARRYING OUT THIS PROJECT:

This project was carried out by on the basis of questionnaire,to

know

Consumers Perception Towards plastic money.

TABLE OF CONTENTS

INTRODUCTION

OBJECTIVE OF THE STUDY

SCOPE OF STUDY

RESEARCH METHODOLOGY

SBI PROFILE

DATA ANALYSIS

FINDINGS

CONCLUSION

RECOMMENDATION

SBI AN INTRODUCTION

COMPANY’S PROFILE :

1) State Bank of India (SBI) is the largest bank of India.

2) The State bank of India is the 29th most reputed company in the world according to Forbes.

3) It has a market share among Indian commercial banks of about 20% in deposits

and advances, and SBI accounts for almost one-fifth of the nation’s loans.

4) The State Bank Group, with over 16000 branches, has the largest branch network in India.

STATE BANK OF INDIA

TypePublic (BSE, NSE:SBI) & (LSE: SBID)

Founded Kolkata, 1806 (as Bank of Calcutta)

Headquarters

Corporate Centre,

Madam Cama Road,

Mumbai 400 021 India

Key people Om Prakash Bhatt, Chairman

Industry Banking, Insurance, Capital Markets

Revenue▲ Rs. 1,135.36 billion (2009) (US$ 24.57

billion)

Net income▲ Rs. 109.98 billion (2009) (US$ 2.38

billion)

Total assets▲ Rs. 11,880.60 billion (2009) (US$ 257.18

billion)

Total equity▲ Rs. 659.12 billion (2009) (US$ 14.26

billion)

Employees 205,896

The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 21000 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

The bank is also looking at opportunities to grow in size in India as well as Internationally. It presently has 173 foreign offices in 33 countries across the globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme.

OBJECTIVES

Our main objective is to make home loans customer friendly. Other objectives are as follows:

1. SBI sole purpose is to target customers of all segment of the society. It

performs this function by its varieties of home loan products.

2. SBI home loan is introduced for stimulating growth in housing industries

and has received an overwhelming response from the market. Intense

initiatives have enabled SBI to occupy the leadership place in home loan

industry.

3. The basic need for providing home loans by SBI is to facilitate basic need

and necessity for very individuals. As India is a developing country,

people of different and varied income group exist, and it is clear that

everyone cannot afford the home for oneself. Therefore, to satisfy the

purpose, SBI offers various categories of home loan products and also

help the citizens by offering nominal interest on home loans.

4. SBI facilitate the transactions by availing different products to the

customers which is suitable for them and tell them to invest so that they

can be benefited in the near future. This generally applies to the rule of

financial management.

5. Home loans mostly cover ideal principle of financial management. It

includes how the finance resources can be best utilized or managed in

the best optimum possible way. Different types of Individual are

6. eligible for different product. And which product is most suitable for

them, is conveyed to the customers by SBI in the best possible way.

7. How finance would be managed effectively? This is answerable through

the fact that, SBI has the major objective of retaining leadership through

continuous product and process. Innovation has been decided to give

incessant services to the customers.

8. As with a view of stimulating growth, in residential real estate and

related sectors in the economy, it has been decided to provide and

enable the genuine needy buyer to buy the different home loan

products.

MISSION, VISION AND VALUES

MISSION STATEMENT:

To retain the Bank’s position as premiere Indian Financial Service Group, with world class standards and significant global committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development banking rule.

VISION STATEMENT:

¨ Premier Indian Financial Service Group with prospective world-class

Standards of efficiency and professionalism and institutional values.

¨ Retain its position in the country as pioneers in Development banking.

¨ Maximize the shareholders value through high-sustained earnings per

Share.

¨ An institution with cultural mutual care and commitment, satisfying and

Good work environment and continues learning opportunities.

VALUES:

¨ Excellence in customer service

¨ Profit orientation

¨ Belonging commitment to Bank

¨ Fairness in all dealings and relations

¨ Risk taking and innovative

¨ Team playing

¨ Learning and renewal

¨ Integrity

¨ Transparency and Discipline in policies and systems.

STATE BANK INTERNATIONAL ATM-CUM-DEBIT CARD

Eligibility:

All Saving Bank and Current Account holders having accounts with networked branches and are:

18 years of age & above Account type: Sole or Joint with “Either or Survivor” / “Anyone

or Survivor”

NRE account holders are also eligible but NRO account holders are not.

Benefits:

Convenience to the customers traveling overseas Can be used as Domestic ATM-cum-Debit Card

Available at a nominal joining fee of Rs. 200/-

Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or equivalent at Point of Sale (POS) terminal for debit transaction

Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to Rs. 2,00,000/-

Charges for usage abroad: Rs. 150+ Service Tax per cash withdrawal Rs. 15 + Service Tax per enquiry.

HISTORY

In the late 1990s, the plastic cards market in India, comprising

credit cards, smart cards, debit cards, charge cards, stored

value cards and others, picked up momentum like never

before, growing at an annual rate of 25%. Analysts attributed

this growth largely to the rapidly increasing user base of debit

cards.

Though initially, there were only two players, (HDFC and

Citibank), the debit card market base grew considerably

through 1999 and reached the 3 million mark in March 2000.

The usage figures indicated a very healthy growth of the

market in future, as seven out of 10 cardholders were

reportedly using their card regularly. The annual spending

through debit cards in India reached over Rs 5 billion.

The growth of debit cards was all the more impressive

considering the fact that credit cards, introduced in the country

in the early 1980s, had managed to reach the 10 million-user

base level only in 2000.

Thus, the debit card user base had reached one-third of the

credit card user base in just around one-tenth of the time. Also,

smart cards introduced in the late 1990s, had become very

popular, especially in the financial services, banking,

healthcare, transport and telecommunication businesses. The

demand for co-branded cards during 2001 was a further

indication of the fact that the Indian market had finally realized

the potential of plastic money.

ABOUT CREDIT CARDS & DEBIT CARDS

The evolution of plastic money dates back to the 1920s,

when the first payment card was introduced in the USA. Diners

Club and American Express launched the world's first plastic

card in the USA, in 1950. The first credit card was introduced by

Diners Club in 1951. The global card market is dominated by

two US-based players, Visa and MasterCard. Visa introduced its

first credit card, BankAmericard in 1958, which went on to

become a great success acquiring universal merchant

acceptance. Visa's card base increased significantly through

the decades and reached the one billion mark in 2000.

MasterCard International was established in the 1970s.

In the 1990s, having covered a majority of US and European

markets, Master Card and Visa shifted their focus to the East,

especially the Asia Pacific region. By 2000, MasterCard and Visa

had established their debit cards as well in the Asia Pacific

region.

INTRODUCTION

Plastic cards, or what is described as plastic money,

happen to be the best-known method of payment in this day

and age. Most of us did not grasp how quickly that little piece of

plastic took its place in our lives. creditcards online will

continue to be used for the multiple advantages they offer us.

We realize all too well that online creditcards work as an

expedient payment option to pay for our many purchases.

Imagine stashing money in all your pockets as against merely a

little plastic rectangle.

Additionally, at present going around with a large quantity of

cash on you is not a wise choice in terms of safety. The safety

issue assumes even greater significance when you are visiting

someplace far. Money is easy to spot and pick-pockets and

thieves are able to use nicked money equally easily because

these funds are not

Most times, people find using online credit card their way

out of an otherwise hopeless situation. Several people found

themselves purchasing airline tickets on-line, reserving a hotel

room, or renting a car. Then again, there are times when you

require some more ready money at once. In these kinds of

emergency situations, you can switch to using credit by using

your creditcards online. Generally, credit card online give a

maximum of fifty days of interest free use of your credit.

Likewise, some merchants state, in their product promotion,

that you have the ability to get yourself a high-priced article

( e.g. USD 6,000) today and pay for it in a particular number of

even installments. Accordingly, you can handle your finances

efficiently so as to remit your periodic payments and do so

without any additional charges for interest.

A lot of individuals look at your credit report (which lists

your credit history and is created and updated using

information from banks, merchants and other creditors) to

evaluate you, consequently it`s crucial that your credit report is

as good as possible. Potential employers, insurance

establishments, mortgage organizations, and several other

institutions will attempt to get an idea of your character by

going through this factual data. Possessing a creditcards online

and availing of it wisely will help create a positive credit history.

There`s no need to get anxious over whether you`ve adequate

money on your person or whether you don`t. Nor do you need

to use up large chunks of your time waiting in lengthy queues

in a bank branch, or spend time drawing money from an

automatic teller machine when instead you can always take

your credit card wherever you go, and that takes care of all

your financial needs.

Several online creditcard have travel insurance (that is,

insurance to cover problems associated with traveling) built

into them as an inherent function. Consequently, if you are

among those that are often on the move, this feature might be

a tangible plus point. Even so, you must make sure to confirm if

this travel insurance provides adequate coverage for you. In

addition, carefully go over the terms and conditions that come

with such insurance. Misplaced baggage is something which is

almost always taken care of with such insurance.

You may treat your online creditcards as an additional

supplier of money when abroad - and this whenever you don`t

wish to avail of your prepaid visa mastercard as your first

source of funds, in order to avoid paying commission on out-of-

country transactions. Therefore, when you find yourself

strapped for money or travelers` checks you can bank on your

charge cards as a fallback option. With such a plethora of

useful features when you`re under financial stress, it is a

convenience that you cannot (rather mustn`t) avoid. Indeed,

online credit card is really an essential commodity in today`s

global environment.

TYPES

Credit card debt

Credit cards are a boon - they give us so much financial

freedom and help us keep our options open. But they can also

work as a double-edged sword. Credit card debt can bring you

to ruin - even as you lead an affluent lifestyle. Rolling credit - if

you get entangled in it - it can pull you down under. If you're

already caught in the mesh - get out of it as soon as possible -

even if you have to deny yourself every single luxury for the

next few months. If you're on the verge of getting into a credit

card debt trap - avoid it at all costs.

o Keep an account of all your bills. Do they tally with the

statement send by the credit card company? You'll be

amazed at how many indiscretions and mistakes can take

place at this level. Always check and double-check your

statement.

o Take a good look at your bills. Where is it that you're

overspending? What are the items you would have

resisted from buying if you would have had to pay cash?

Give it serious thought - should you be indulging in them

when you can't afford them?

o Resorting to pay the minimum amount due is okay at a

time of need - but certainly not something to be done

regularly. The interest you will need to be pay is

exorbitant - and by the time you're done settling your

debt you would have paid twenty to twenty five times

more than if you had paid cash in the first place.

o Inculcate a financial discipline. Make a budget, and stick to

it. Keep a watch over your bank account. What is the

income as compared to the outgoing money? Be your own

accountant - and be a good one.

o Why not stop impulsive buying? Unless you have an

accommodating bank balance

Handy Gift Cards

A convenient alternative to Gift Vouchers/Gift Certificates, the

Gift Card can be used more than once at various merchant

establishments, which means the recipient can shop at various

outlets until the specified rupee amount has been spent.

o The Gift Card can be used more than once. The person

you are gifting it to can keep making purchases till the

specified value on the card has been spent.

o The card is available to idbi bank and non-idbi bank

customers.

o The Rupee denominated Gift Card can be purchased over

the counter for a minimum limit of Rs.500/- or a maximum

limit of Rs. 20,000/-

o The Gift Card is valid for a period of one year from the

date of issue.

Perfect for birthdays, graduations, anniversaries, holidays,

employee rewards, customer appreciation and more, the gift

card is a practical and convenient solution to gift giving,

eliminating the chances of giving an unwanted gift.

There have been many occasions when we have received gifts

that are not really suitable for our taste or lifestyle. There

surely have been occasions when we have a hard time picking

the perfect gift. This is where this unique gifting concept will

come in handy.

One of the most desirable benefits for the customers is

convenience and quick availability at any idbi bank branch.

With the tie-up with VISA International, the Gift Card can used

to make purchases at over 50,000 establishments in India.

This is good news for the festive season. Mr.Vijay of Customer

Support of one of the chennai Branches says that this unique

and convenient concept of a pre-paid card that has 'Visa power'

will enable the receiver to get what they like, when they like.

The process is simple. Pay at an IDBI counter and get the card

on demand. Minimum value would be Rs.500/- and maximum

Rs.20,000/- .

Petro Card

A Petro Card is a credit card-size plastic card that

allows you to pay for fuel with a card. The Petro Card is a

variation of the Smart Card. It has an embedded

microprocessor chip, which keeps track of the money you load

on your card and the balance available on the card.

How it works?

You can get your Petro Card after you enrol into the PetroBonus

programme of a company selling petrol and other fuel. To

initialise this card, you have to first take it to a participating

PetroBonus dealer. You will pay a sum of money to the dealer

who will issue you a Petro Card. Then the card will be placed on

a 'reader'. You have to enter the pin code given and lo and

behold! Loaded onto the card will be the sum of money that

you want.

Once the card is loaded, you can use it to buy petrol, diesel,

lubricants or any other product or service available at the

pump. Usually the initial loading has to be for a minimum

amount of Rs.500 and in multiples of Rs.100 thereof. You will

also be given a receipt for the amount loaded.

AGE OF PLASTIC MONEY

Banking has evolved a long way from the days of the medieval

moneylenders counting coins on the bench to the present

scenario, where it is hard to trace the trail of money from the

beginning to the end.

The trail starts right from the small saver leaving a few rupees

in his local bank to the billions of rupee loans raised by a

syndicate banks and financial institutions, capable of financing

projects in any country in the world. Still, these banking majors

are heavily dependent upon their retail home base of savers

and borrowers. Most of the bankers began focusing on this

retail market segment as global competition intensified in late

seventies and early eighties.

Credit cards, one of the banking products that cater to the

needs of retail segment has seen its number grow in geometric

progression in recent years. This growth has been strongly

supported by the development in the field of technology,

without which this could not have been possible.

The history of phenomenal growth in the credit card segment

traces way back to in 1950, the time when ‘Diners Club’ was

established. The card provided select members with credit at

22 restaurants in New York and collected a commission for

paying the bills promptly. The credit card industry got a further

boost with the arrival of American Express in the arena in 1958.

American Express began selling their card as a prestige to

hotels, restaurants, shops or airlines in America and slowly

expanded the network across the world.

The success of these two players attracted many other banks

to join the credit card business. The entire breed of new players

saw a fresh opportunity of granting unsecured loans at high

interest rates to those credit cardholders who did not pay their

bills on time. These banks were not so concerned with

collecting commissions from shops but were thriving on high

interest income from those who did not pay their bills on time.

Starting from ‘Diners Club’, some 50 years ago, the card

industry has been growing with a rapid pace world over and so

has been the growth in the domestic card industry. With only

two players in domestic card industry, HSBC and Citibank in the

early 80s, the number swelled to over 25 in the year 2001.

Credit cards in India, made their debut in 1981, and are on the

verge of an unprecedented boom. Between 1987 and 2001, the

market has virtually grown to over 4 million cards with over 25-

30% of compounded annual growth in new cardholders base.

Its not that only the card numbers have increased, but even the

types of cards on offer have seen a surge. Today the domestic

card industry is flooded with different types of cards ranging

from gold, silver, global, co-branded credit cards, smart to

secure, ….the list is endless. Foreign banks have shouldered

the major responsibility of increasing the card base and adding

value-added services to the card products in the past. This is

also evident from the fact that the market share of these

foreign banks is estimated to be well over 70%. But the

scenario has changed dramatically in the last of couple of years

with the entry of State Bank of India (SBI), a domestic major in

the banking sector. More and more nationalised banks and

private sector banks like ICICI and HDFC Bank are aggressively

launching credit card with value added features.

There is immense growth potential in the domestic card

industry. A glance at the Indian population reveals that India’s

middle/upper middle class (target segment) represents a

population of over 10 m. There are only 2 to 3 m cardholders,

each possessing an average of 2 cards. This is a very low figure

given India’s huge middle to upper class population. There is no

doubt that the domestic card industry has to yet to mature and

offers significant long-term growth potential.

Given the lack of maturity of the domestic card industry, its

growth will depend upon building core retail business, with

more sophisticated products. In the expansion of domestic

credit card market, the existing foreign players, SBI, other

nationalised banks and the new domestic private sector banks

are expected to play important role with complementary

strategies.

Foreign banks with the advantage of technology and industry

experience are expected to concentrate on increasing card

spending and customer loyalty in the major cities. SBI, on the

other hand is expected to capitalize its superior distribution

network to expand card acceptance in the smaller towns. The

new private sector banks would have the opportunity to

capture significant market share by combining the strengths of

foreign banks and nationalised bank like SBI.

Although at present the card market is mainly limited to India’s

relatively bigger cities and tourist locations only, there is also a

potential in smaller cities. Domestic banks, owing to their vast

network and reach to smaller cities, can easily tap this

potential. They would be better off, penetrating into smaller

cities and bringing credit card to the masses rather than

cannibalising other foreign banks’ existing cardholder base.

The efforts of these banks to increase the card base is going to

be wholeheartedly supported by the residents of these smaller

cities with their higher disposable income, changing lifestyle,

increasing travel and the growth in the entertainment sector.

PASSION FOR PLASTIC MONEY ON THE RISE, SHOWS

STUDY

When was the last time you used hard cash in a shopping mall

or a grocery store? If you have tickled your grey cells enough,

let me prove India’s renewed passion for the plastic.

Today’s consumers have moved away from using cards only for

big ticket purchases such as travel and entertainment. They are

now shifting daily expenditure such as groceries and other

types of household spending from cash to electronic payments.

A study by Visa International and National Council of Applied

Economic Research (NCAER) reveals segments such as

handicrafts (56%), consumer durables (54%), telecom (53%),

departmental stores (52%), petrol (52%), jewellery (49%) and

supermarkets (49%) have shown highest year on year growth

in card usage.

India’s bank card business has entered a period of rapid

development with a compounded annualised growth rate

(CAGR) of 55% to an estimated 44 million credit and debit

cards in 2004. Debit and credit card volumes also increased

from $23 billion in 2004.

However, 80% of card volumes from ATM cash withdrawals,

predominantly with debit cards, said the study.

Debit cards are still largely used for cash withdrawals at ATMs.

This is a natural consequence of an astronomical growth in

ATMs to 14,000 across the country by December 2004, against

1,100 ATMs in select pockets of metros, three years ago.

Given the cost savings for banks from debit card transactions,

increase in merchant acceptance locations and greater

consumer familiarity, it is expected that most ATM cards would

be converted to debit cards with added functionality for point-

of-sale usage over the next two years.

Electronic payments can help reduce the size of the informal

economy. When cash remains outside the banking system, the

possibilities of supplying productive capital to the economy are

diminished. Bringing cash into the banking system produces an

equal increase in bank reserves, enabling banks to facilitate

more consumer and commercial loans, thereby stimulating

business growth and consumption.

Governments can utilise electronic payments as a channel to

modernising and boosting efficiencies in their respective

economies. Electronic payments can be used to minimise

leakage of government funds, which could otherwise be utilised

to maximise returns through effective resource allocation

within the economy.

Even if it is 10% of the total government expenditure, it

amounts to Rs 47,425.5 crore, in 2002-03, which may be saved

through electronic payments.

The introduction of a payment mechanism and electronic

payment system into government expenditure, for

procurement and purchasing as well as for activities like tax

collection and other administrative processes may facilitate

more effective use of public funds.

However, the total spend in India on a payment card is still less

than 1% of the country’s percentile.

This indicates that the growth potential of the payment card

industry is enormous. Around 30 million people are eligible for

creditcards and 150 million people are eligible for debit cards.

PLASTIC MONEY USE GAINS PACE IN INDIA

The plastic money market in India witnessed a quantum growth

in the last one year. India has outperfomed most other markets

in the Asia Pacific region with both retail sales volumes and

card sales volume growing by over 60% in the last one year,

according to Visa International .

For the 12 months ended June ’05, the retail sales volume of

Visa in India rose 66% to $3.8 bn. Retail sales volume refer to

spends by card holders, both debit and credit cards at point of

sales or merchants.

This would mean that more customers have started using their

debit and credit for purchasing goods and for other

transactions. According to the company, it has a 70% share of

the retail sales volume through cards in the country.

Also, the card sales volume (CSV), which includes cash

withdrawals at ATMs, has seen a growth of 76% to $23.8 bn.

CSV would include retail sales volumes and cash withdrawals

from ATMs. Most of the banks in India have converted their ATM

cards to debit cards.

The total number of Visa cards issued in the country saw a

growth of 42% to 30 mn, of which Visa credit cards grew 38%

to 9 mn. The total number of Visa debit cards grew 45% to

21m.

The total number of credit cards in the country is estimated to

be over 15m cards. The company has seen a 77% compounded

annual growth rate in cards in the last four years and a 50%

growth in the retail sales volumes.

India has a higher number of Visa issued cards than in some of

the other South-East Asian countries like Thailand, Indonesia,

Malaysia and Singapore. Compared to 30.18 mn cards in India,

Thailand, which is the second largest market for Visa, has 16.4

mn cards.

However, in card sales volumes, Thailand is a bigger market

than India at $26.07 bn as against $23.81bn. The other

markets, however, have lower card sales volumes than India.

BEST OUT OF YOUR PLASTIC MONEY

For most of us, Credit Card means "Plastic Money" which

is not only very convenient to carry, can be used in millions of

establishments and Banks across the Globe with great ease

for purchasing stuff or withdrawing cash at ATMs.

All Credit Cards carry almost similar features and are

governed by the identical terms and conditions for their use

by the credit card holder. In order to survive in the

competetion, many incentives and exclusive features like

Rewards and Bonus Points on purchases, Insurance Coverage,

Waiver of joining fee,Offer of free additional cards etc. are also

announced by many Banks from time to time. Everything

seems good for the Credit Card user on the face of it.

However, all is not good as it appears to be. Many of us are

not aware of many such things about these Credit Cards which

are not so good. Some of these facts are: *Most Credit cards

charge an interest @2.95% p.m. which works out to around

35% p.a. on the total outstanding of the credit card if the total

payment is not made by the due date. *Even if you pay the

"Minimum Amount "by the due date, you will be charged the

interest on the entire outstanding amount. *Service Tax as

applicable will also be charged on the interest charge which

will make the effective rate of interest on your credit card

around 38% per annum. *Even if your payment is delayed for

a single day, you will be charged a hefty late fee. Even if you

have opted to pay the minimum amount, the late fee will be

calculated on the total amount outstanding in case it is

delayed. It may also happen sometime that as a "Minimum

Amount" you have paid an small amount say Rs.200/- and it is

delayed. You may be charged a late fee of Rs.200/- on

delaying the payment of Rs.200/- by a single day. *Rewards or

Bonus Points accumulated on your Credit Card need to be

redeemed within a specified time limit say within 2 years and

these get lapsed thereafter . In order to get best out of your

Credit Card, what one should do is to follow the few simple

steps which are given below: 1.In case you really do not need

it, do not hold any credit card. 2.In case you think you should

hold a credit card, then make sure that you hold more than

one Credit Card of different issuing banks. 3.Always try to

make the full payment of your total outstanding or get it

converted to EMIs for which all banks charge a concessional

rate of interest around 18% p.a.

OBJECTIVES OF STUDY

To study the awareness of the plastic money.

To study the reasons why consumer like to opt for plastic money

To study the usage of the plastic money

To study the advantages of plastic money

To study the opinion regarding plastic card.

SCOPE OF STUDY

The study can be useful to bank customers who are using plastic

money as they might come to know about the use of plastic money.

The study can be of great importance to the bank customer for the use

of plastic money in shopping, billing, online transactions etc.

LIMITATIONS OF STUDY

1. The information provided by the Bank Customers is

not definitely true.

2. The samples of Bank Customers are not representative

of the total workforce.

3. The Bank Customers hesitate disclosing the true facts

of plastic money in order to secure their income.

4. There is no measure to check out whether the

information provided by the Bank Customers is

correct or not.

RESEARCH METHODOLOGY

For achieving the objectives of study, survey was conducted. For survey, personal

interviews of the bank customers were undertaken. Personal interviews was selected

as the mode of survey to make the study more meaningful & so that maximum

information could be collected. For conducting the personal interviews of the bank

customers, a questionnaire was made. The questionnaire was structured with open

ended & close ended questions.

The bank customers was interviewed on various aspects likely to have impact on

the plastic money and its uses.

Problem definition:-

Concept of Plastic Money and Consumers Perception Towards it.

This research is Descriptive in nature.

Descriptive research is used to describe something – usually market characteristics , functions

behavior .

Research Plan

Research planning is the process of developing the most efficient plan for gathering the needed

information.

Questionnaire structure

For the research multiple choice type of questions were prepared to collect primary data from the

respondents.

QUESTIONNAIRE ANALYSIS :-

Q 1:- Are you aware of Plastic money?

Yes 127

No 23

Yes85%

No15%

Yes

No

Q 2:- If Yes, how did you come to know about plastic money?

Bank Employee 23

Media 49

Newspaper 11

Friends/Relatives 35

Any Other 9

Bank Employee18%

Media38%

Newspaper9%

Friends/Relatives

28%

Any Other7%

Bank Employee

Media

Newspaper

Friends/Relatives

Any Other

Q. 3:- While opening an account, would you prefer the facility of plastic money?

Always 97

Most Likely 21

Sometimes 6

Never 3

Always76%

Most Likely17%

Sometimes5%

Never2%

Always

Most Likely

Sometimes

Never

Q 4:- Do you have?

Debit Card 41

Credit Card 52

Both 7

None 27

Debit Card32%

Credit Card41%

Both6%

None21%

Debit Card

Credit Card

Both

None

Q 5:- Reasons for which you have opted for card?

Safety Solution 19

Handling Solution 23

Convinient 19

Fast Transaction 31

All of above 6

Any other 2

Safety Solution19%

Handling Solution23%

Convinient19%

Fast Transaction31%

All of above6%

Any other2%

Safety Solution

Handling Solution

Convinient

Fast Transaction

All of above

Any other

Q 6:- How often do you use your card?

Daily 5

Weekly 59

Monthly 36

Daily5%

Weekly59%

Monthly36%

Daily

Weekly

Monthly

Q. 7 :- Your card belongs to which bank

Private sector Bank 1………………… 2……………………..

Public sector Bank 1………………… 2……………………..

Private Sector Bank 69

Public Sector Bank 31

Private Sector Bank69%

Public Sector Bank31%

Private Sector Bank

Public Sector Bank

Q. 8:- For which purpose do you use your card ?

Cash Withdraw 39

Shopping Bill 24

Travelling 11

Dining Bill 18

Any Other 8

Cash Withdraw

39%

Shopping Bill24%

Travelling11%

Dining Bill18%

Any Other8%

Cash Withdraw

Shopping Bill

Travelling

Dining Bill

Any Other

Q. 9:- Do you agree that plastic money reduces Harassment and time ?

Strongly Agree 11

Agree 23

Sometimes 48

Disagree 13

Strongly Disagree 5

Strongly Agree11%

Agree23%

Sometimes48%

Disagree13%

Strongly Disagree

5%

Strongly Agree

Agree

Sometimes

Disagree

Strongly Disagree

Q. 10 :- Have you ever felt that plastic money is are much safer then holding money in Pocket ?

Always 19

Most Likely 57

Sometimes 15

Never 9

Always19%

Most Likely57%

Sometimes15%

Never9%

Always

Most Likely

Sometimes

Never

Q.11:- Will you see the next generation as “no currency but plastic money” ?

Strongly Agree 31

Agree 22

Sometimes 15

Disagree 12

Strongly Disagree 20

Strongly Agree31%

Agree22%

Sometimes15%

Disagree12%

Strongly Disagree

20%

Strongly Agree

Agree

Sometimes

Disagree

Strongly Disagree

Q. 12:- Your opinion about your plastic card ?

Good 41

Average 29

Satisfied 19

Poor 11

Good41%

Average29%

Satisfied19%

Poor11%

Good

Average

Satisfied

Poor

FINDINGS

85 % of the respondents are aware of Plastic Money from which 38 % of the respondents came to know about the Plastic Money from the media, 28 % from Friends and Relatives, 18 % from bank employees, 9 % from the newspaper and the rest 7 % from other resources.

76 % of the respondents responds that they always want the facility of plastic money with the opening of an account. 17 % respond most likely, 5 % sometimes and the rest 2 % never.

41 % have credit card, 32 % have debit card, 21 % have none and the rest 6 % have both credit as well as debit card.

For the reasons for opting card is that 31 % go for fast transaction, 23 % for handling solutions, 19 % for safety solutions and for convenient also, 6 % for all of above and the rest 2% for any other.

59 % have use their card weekly, 36 % use it monthly and the rest 5 % daily. Most of the cards belong to the private banks as they adopt many techniques so that the customers go for the use of plastic money in terms of using credit card and debit card.

39 % of the customers use their card for cash withdrawl, 24 % for the shopping bills, 18 % for the dining bill, 11 % for traveling and 8 % for any other usage regarding sale and buying in the market and on the internet also.

48 % of the bank customers use Plastic Money to reduce harassment and time, 23 % are agree, 13 % are disagree, 11 % strongly agree and the rest 5 % are strongly disagree.

According to the 57 % of the bank customers, plastic money is are much safer then holding money in Pocket, 19 % says always, 15 % go for sometimes and the rest 9 % for never.

CONCLUSION

● When the bank customer going to open the account in a bank they always want the facility of plastic money. Most of the bank customers have credit as well as debit card and they need it for the fast transaction and handling solutions.

● Most of the bank customers use the card weekly and that too for cash with drawl and shopping purpose as according to them plastic money is are much safer then holding money in Pocket.

● Many of them consider the point that the next generation is “No Currency but Plastic Money” and their opinion regarding the plastic money is good enough to promote it for the future.

DEBIT CARDS ARE HERE TO STAY

Most of the bankers expressed the view that issuance of debit cards would grow at a faster rate:

It is still a new concept combined with the fact that there are only a few players right now.

Any person who has a bank account can be issued a debit card. There are few norms to be complied with for issuance of debit cards.

In case of debit cards frauds are hardly possible, hence the banks have no problems in issuing the debit cards.

Debit cards are more looked by banks as an incentive to increase their customer base.

The Indian psyche is credit averse especially the older generations. The so called ”udhari„ is something that is avoided.

One of banks also put forth the fact that in credit cards there is always a problem of recoveries which is not there in case of debit cards. The bank felt that there is more scope for the debit card industry to grow if they are launched in a co-branded form.

SUGGESTIONS

● Banks have to put more efforts so that every bank customer will avail

the facility of plastic money

● In doing this, they too have to minimize the amount charge to avail

credit or debit cards.

● Banks have to provide full information to their customers for proper

using and the benefits of plastic money.

● Bank customers have to come forward to understand the advantages of

using plastic money and remain free from having bulky purse in the

pockets.

● ]In countries like India, the usage of having plastic money is too low,

thereby making such consideration we have to move towards next

generation of plastic money with full understanding and consequences

of plastic money.

BIBLIOGRAPHY

● www.onprepaidcard.com/24775/

● http://en.wikipedia.org/wiki/Money

● http://www.financialexpress.com/fe_full_story.php?content_id=80188

● http://economictimes.indiatimes.com/Money_Matters/Credit_Cards/

News/Plastic_money_use_gains_pace_in_India/articleshow/msid-

1268620,curpg-2.cms

● http://www.cinechance.com/a/how-to-get-best-out-of-your-plastic-

money.html

● RESEARCH METHODOLOGY ,MOHIT GUPTA,NAVDEEP AGGARWAL