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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
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
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,
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had become very popular, especially in the financial services, banking, healthcare,
during 2001 was a further indication of the fact that the Indian market had finally
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,
universal merchant acceptance. Visa's card base increased significantly through the
decades and reached the one billion mark in 2000. MasterCard International was
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. In 2000, Visa debit cards reached the 48 million mark in the Asia
Pacific region, while the MasterCard debit card base touched the 37 million mark.
2
3
INTRODUCTION
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
payment option to pay for our many purchases. Imagine stashing money in all
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
traceable. online creditcard dealings however, are detectable and carry an audit
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trail as well.
Most times, people find using online creditcard their way out of an
tickets on-line, reserving a hotel room, or renting a car. Then again, there are times
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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
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
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
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.
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Several online creditcard have travel insurance (that is, insurance to cover
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
when abroad - and this whenever you don`t wish to avail of your prepaid visa
out-of-country transactions. Therefore, when you find yourself strapped for money
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or travelers` checks you can bank on your charge cards as a fallback option. With
convenience that you cannot (rather mustn`t) avoid. Indeed, online credit card is
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TYPES
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
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.
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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
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
watch over your bank account. What is the income as compared to the
o Why not stop impulsive buying? Unless you have an accommodating bank
balance - you're really throwing away your precious money on things you
don't really want or need. Resist from online shopping - it has a tendency
Credit card - credit yourself with sense - and use them to your advantage.
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Handy Gift Cards
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 Rupee denominated Gift Card can be purchased over the counter for a
o The Gift Card is valid for a period of one year from the date of issue.
customer appreciation and more, the gift card is a practical and convenient
There have been many occasions when we have received gifts that are not really
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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.
So what do you think, readers? Convenience goes plastic and elastic to suit the
world of today.
Good or bad? Have your say too. Right here in the space below.
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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
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
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
13
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
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
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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
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
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
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their bills on time. These banks were not so concerned with collecting
commissions from shops but were thriving on high interest income from those
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
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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)
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
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
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Foreign banks with the advantage of technology and industry experience are
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.
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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.
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
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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.
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
credit and debit cards in 2004. Debit and credit card volumes also increased from
However, 80% of card volumes from ATM cash withdrawals, predominantly with
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Debit cards are still largely used for cash withdrawals at ATMs. This is a natural
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
ATM cards would be converted to debit cards with added functionality for point-
Electronic payments can help reduce the size of the informal economy. When cash
capital to the economy are diminished. Bringing cash into the banking system
consumption.
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Even if it is 10% of the total government expenditure, it amounts to Rs 47,425.5
like tax collection and other administrative processes may facilitate more effective
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
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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
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
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
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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
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
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
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,
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
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BEST OUT OF YOUR PLASTIC MONEY
For most of us, Credit Card means "Plastic Money" which is not only very
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
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,
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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
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
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
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
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CLASSIC CARDS: OUR PRODUCTS TRUSTED BY MANY
Choose our Internationally accepted Silver Credit Card and enter a world of
A true value card that enables you to avail 5% cash back on all your purchases.
family. You can rest assured with the Health Plus Credit Card.
27
A card to match your lifestyle with features like International Business Travellers'
Club (IBTC) membership, special offers on air tickets and rewards redemption for
air miles.
Limited Edition card with 24X7 concierge services, zero surcharge on fuel and
Enjoy the benefits of the best premium card made specifically for women. Apply
It's Not just a card, It's a designation. HDFC Bank Corporate card comes with a unique
Mastercard International.
FEATURES :
A Credit Card A power A Credit Card A Credit Card A special Gold card
combined with packed Credit that takes which exclusively for Women
all the card with a care of your introduces with all the powerful
conveniences host of financial you to a benefits of HDFC Bank
offered by a unmatched health as well whole new Gold Credit card, and
bank. features that as your life of much more.
provides your family's privileges.
family with health &
true Value and fitness.
28
savings.
BENEFITS :
Reward points. Cash Back Of Cashless Special offers 5% cash back on
Up to 5%. Mediclaim. on air and Grocery/supermarket
train tickets spends, leading
purchase. department stores and
on mobile bills*.
No liability on Children's Discounts at Discounts on Discounts on hotel
lost card. Future hospitals*. hotel tariff. tariff.
Secured.
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Keeping with its long tradition of sound banking and innovativeness, PNB has
entered the card business. At a time when new payment systems are becoming
popular in the country, PNB has joined the ranks of banks that are offering card-
PNB International Credit Card is available in two variants, viz. Gold Card and
Classic Card. Our Credit card has much more than just credit facilities.
Punjab National Bank is happy to launch its co-branded international credit card
with Hongkong & Shangai Banking Corporation Ltd. (HSBCL), one of the world's
proposition. It is set to bring about a revolution in retail banking and offers value
to customers.
The PNB Credit Card will be issued in two variants – Gold and Classic Card
(MasterCard/ Visa). The credit Card is being offerred to resident Indian Nationals who
have either their residence or office in any of the undernoted 23 cities, in India:
30
New Delhi Vishakhapatnam Kochi/Cochin
Indore(Recently
Faridabad
launched)
31
Insurance Benefits
Eligibility
PNB International Credit Card will be issued only to customers who have either
their residence or their office in one of the cities where PNB will provide the
32
Jaipur Coimbatore Vadodara/Baroda
Faridabad
minimum balance in their Savings Fund account and availed Housing/Car loan
from PNB, without any proof of income documents, as a special case.Free credit
All applicants whose names appear in any blacklist or defaulter list referred to by
Annual
income
The minimum annual income requirement for applying under the two categories of
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OBJECTIVES OF STUDY
To study the reasons why consumer like to opt for plastic money
SCOPE OF STUDY
The study can be useful to bank customers who are using plastic money as
The study can be of great importance to the bank customer for the use of plastic
34
LIMITATIONS OF STUDY
workforce.
3. The Bank Customers hesitate disclosing the true facts of plastic money
35
RESEARCH METHODOLOGY
For achieving the objectives of study, survey was conducted. For survey,
was selected as the mode of survey to make the study more meaningful & so that
The bank customers was interviewed on various aspects likely to have impact
Problem definition:-
Concept of Plastic Money and Consumers Perception Towards it.
Type of Research:-
Research Plan
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Research planning is the process of developing the most efficient plan for gathering the
needed information.
Data source
The major source of data is Primary but Secondary data is also used for making the
project.
Primary data
Secondary data
Questionnaire structure
For the research multiple choice type of questions were prepared to collect primary data
from the respondents.
Sampling Plan
Types of Data:
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I have used printing as well as secondary data. Some data is been taken
from internet, some from HDFC Bank and PNB Bank literature and some is
38
QUESTIONNAIRE ANALYSIS :-
Yes 127
No 23
39
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
40
Q. 3:- While opening an account, would you prefer the facility of plastic money?
Always 97
Most Likely 21
Sometimes 6
Never 3
41
Q 4:- Do you have?
Debit Card 41
Credit Card 52
Both 7
None 27
42
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
43
Q 6:- How often do you use your card?
Daily 5
Weekly 59
Monthly 36
44
Q. 7 :- Your card belongs to which bank
45
Q. 8:- For which purpose do you use your card ?
Cash Withdraw 39
Shopping Bill 24
Travelling 11
Dining Bill 18
Any Other 8
46
Q. 9:- Do you agree that plastic money reduces Harassment and time ?
Strongly Agree 11
Agree 23
Sometimes 48
Disagree 13
Strongly Disagree 5
47
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
48
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
49
Q. 12:- Your opinion about your plastic card ?
Good 41
Average 29
Satisfied 19
Poor 11
50
FINDINGS
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
76 % of the respondents responds that they always want the facility of plastic
41 % have credit card, 32 % have debit card, 21 % have none and the rest 6 %
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
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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.
33 % are strongly agree that the next generation is “No Currency but Plastic
Money”, 22 % are agree, 20 % are strongly disagree, 15 % say sometimes and the
rest 12 % disagree.
41 % of the bank customers response that their opinion about the plastic card is
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CONCLUSION
● Many of the respondents or the bank customer are aware of plastic money.
Media and friends/relatives are the main sources to know about the plastic
● 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
● 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
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DEBIT CARDS ARE HERE TO STAY
Most of the bankers expressed the view that issuance of debit cards would
It is still a new concept combined with the fact that there are only a few
Any person who has a bank account can be issued a debit card. There are
In case of debit cards frauds are hardly possible, hence the banks have no
customer base.
The Indian psyche is credit averse especially the older generations. The so
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
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SUGGESTIONS
● Banks have to put more efforts so that every bank customer will avail the
● 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
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,
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generation of plastic money with full understanding and consequences of
plastic money.
● 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
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QUESTIONNAIRE
Dear respondent,
I am a student of BBA, Dhirendra Mahila P.G College Sunderpur, Varanasi As a part
of my course, I am working on the project “Concept of Plastic Money and Consumers
Perception Towards it” kindly spare few minutes to fill this questionnaire.
____________________________________________________________________
Yes No
Q 2:- If Yes, how did you come to know about plastic money?
Q. 3:- While opening an account, would you prefer the facility of plastic money ?
Always Most likely
Sometimes Never
Q 4- Do you have?
Daily Weekly
Monthly
Q. 7 :- Your card belongs to which bank
Q. 10 :- Have you ever felt that plastic money is are much safer then holding money in Pocket ?
Always Most likely
Sometimes Never
Q.11:- Will you see the next generation as “no currency but plastic money” ?
Strongly Agree Agree
Sometimes Disagree
Strongly Disagree
Q. 12:- Your opinion about your plastic card ?
Good Average
Satisfied Poor
NAME _____________________________________________
58
Contact No. _____________________________________________
AGE 18-25 25-40 40 & above
SEX Male Female
QUALIFICATION Under graduate . Graduate Post graduate
OCCUPATION Self employed salaried professional
ANNUAL SALARY/INCOME <1 LAC 1-5 LAC >5 LAC
59