Dr.IT.IMT
PROJECT REPORT ON
“Concept of Plastic Money and Consumers Perception Towards it” IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE BACHELOR OF BUSINESS ADMINISTRATION (PUNJAB TECHNICAL UNIVERSITY JALANDHAR)
DR IT Institute of Management And Technology, BANUR 2008-2011
PROJECTGUIDE:RACHANA
BHATIA
SUBMITTED BY:RAJESH KUMAR
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ROLL NO80907320022 BBA 6TH SEM.
ACKNOWLEDGEMENT
With the deep sense of gratitude, I feel obliged to Miss RACHANA BHATIA my project guide for his guidance and help which he willingly provided at every step of my project. I would like to express my sincere thanks to god, without whom this project would never have been completed and our Managing Director Mr. P.P. ARYA who has been a constant source of inspiration. I am also indebted to all the customers without whose cooperation the project would not have been possible. Last but not least I am indebted to my family for the moral support and well wishes
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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. Rajesh kumar
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TABLE OF CONTENTS Chapter – 1 1.1 History 1.2 Introduction Chapter-2 2.1 Objective of the study 2.2 scope of Study Chapter- 3 3.1 Limitation Chapter – 4 4.1Research Methodology Chapter – 5 5.1DataAnalysis Chapter – 6 6.1Findings 6.2 Conclusion 6.3 Recommendation ANNEXURE I Rajesh kumar
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DR.IT.IMT. - REFERENCES ANNEXURE II - Questionnaires
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 Rajesh kumar
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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. Rajesh kumar
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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. MasterCard's credit card base touched 80 million during the period.
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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 traceable. online creditcard dealings however, are
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detectable and carry an audit trail as well.
Most times, people find using online creditcard their way out of an otherwise hopeless situation. Several people found themselves purchasing Rajesh kumar
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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 Rajesh kumar
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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.
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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.
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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.
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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 - 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 to rob you of control over your impulses or your money.
Credit card - credit yourself with sense - and use them to your advantage.
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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/-
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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.
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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 prepaid 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/- .
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 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.
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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.
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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 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.
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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 Rajesh kumar
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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.
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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. Rajesh kumar
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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.
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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. Rajesh kumar
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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
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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
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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 .
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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.
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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 Rajesh kumar
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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 Rajesh kumar
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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
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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. 4.
CLASSIC CARDS: OUR PRODUCTS TRUSTED BY MANY Silver Credit Card Choose our Internationally accepted Silver Credit Card and enter a world of privileges and savings. SPECIAL BENEFIT CARDS: FOR THOSE WITH SPECIAL NEEDS Value Plus Credit Card A true value card that enables you to avail 5% cash back on all your purchases. Health Plus Credit Card Cashless Mediclaim, discounts at participating hospitals, extra protection for your family. You can rest assured with the Health Plus Credit Card. PREMIUM CARDS: MUCH MORE THAN JUST SNOB VALUE
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Gold Credit Card 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. Titanium Credit Card Limited Edition card with 24X7 concierge services, zero surcharge on fuel and accelerated two-tier rewards programme. Woman's Gold Card Enjoy the benefits of the best premium card made specifically for women. Apply for HDFC Bank Woman's Gold credit card. Corporate Credit Card It's Not just a card, It's a designation. HDFC Bank Corporate card comes with a unique 24x7 Expense management solution called SMART DATA ONLINE, powered by Mastercard International.
FEATURES : A Credit Card combined with all the conveniences Rajesh kumar
A power packed Credit card with a host of
A Credit Card that takes care of your financial
A Credit Card which introduces you to a
A special Gold card exclusively for Women with all the powerful benefits of HDFC Bank 33
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unmatched features that provides your family with true Value and savings.
health as well whole new as your life of family's privileges. health & fitness.
Gold Credit card, and much more.
BENEFITS : Reward points. Cash Back Of Cashless Up to 5%. Mediclaim.
Special offers on air and train tickets purchase.
5% cash back on Grocery/supermarket spends, leading department stores and on mobile bills*.
No liability on lost card.
Children's Future Secured.
Discounts at hospitals*.
Discounts on hotel tariff.
Discounts on hotel tariff.
Wide acceptance.
House hold Insurance.
Extra Redemption Accelerated reward protection for of points. family. accumulated reward points against airmiles, gifts, GVs etc.
Cash Advance. Cash Advance.
Interest free credit period.
Accidental Death cover
Redemption of accumulated reward points against airmiles, gifts, GVs etc. Interest free credit period.
Interest rates applicable on Revolving credit: 2.95% per month & 35.4% annually
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2.95% per month & 35.4% annually
2.95% per month & 35.4% annually
2.95% per month & 35.4% annually
2.95% per month & 35.4% annually
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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-based banking solutions. 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. PNB INTERNATIONAL CREDIT CARD 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 leading financial instititutions. PNB International Credit Card is an unique and a world-class payment 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
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Nationals who have either their residence or office in any of the undernoted 23 cities, in India:
Mumbai
Thiruvanthapuram
Hyderabad
Ahmedabad
Bangalore
Pune
New Delhi
Vishakhapatnam
Kochi/Cochin
Gurgaon
Chandigarh
Jalandhar
Calcutta
Ludhiana
Ghaziabad
Chennai
Amritsar
NOIDA
Jaipur
Coimbatore
Vadodara/Baroda
Faridabad
Indore(Recently launched)
Product features of PNB International Credit Card: Acceptance at over 22 million establishments. Worldwide ATM access for credit card accountholders at over 6,00,000 ATMs. Free credit period of up to 48 days. At new reduced fee rates, one can have the PNB International Card for Rs. 350/- only. For details one can contact any PNB branch in the 22 cities where the card can be obtained. Rewards programme earn points that can be redeemed against renewal fees, gift vouchers etc. Free remittance at PNB branches for remittances from cardholder’s savings bank account up to Rs. 10,000/- once a month 2.5% discount on basic domestic air fares and 3.5% on international air tickets with specified travel agents. Rajesh kumar
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No surcharge on purchase of petrol ranging Rs 400/- to 2500/- pm from any petrol pump having EDC terminal accpeting accepting credit card.
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Insurance Benefits Classic Card Rs.15 lacs Rs.1.5 lacs Rs.20,000 Rs.30,000 USD 600
Air accident Other accident Credit Shield Purchase protection Baggage insurance Enhanced Travel Insurance Cover for Delayed baggage Cover for loss of travel documents Cover for hijack insurance -
Gold Card Rs.40 lacs Rs.4 lacs Rs.40,000 Rs.50,000 USD 1,200 USD 300 USD 500 USD 250(>12 hours<36 hours)
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 service. These services are initially being provided at 22 cities viz.
Mumbai
Thiruvanthapuram Hyderabad
Ahmedabad
Bangalore
Pune
New Delhi
Vishakhapatnam
Kochi/Cochin
Gurgaon
Chandigarh
Jalandhar
Calcutta
Ludhiana
Ghaziabad
Chennai
Amritsar
NOIDA
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Jaipur
Coimbatore
Vadodara/Baroda
Faridabad Pre-approved Credit Card will be issued to customers maintaining a prescribed 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 card to Home Loan Customers for 1st year.
All applicants whose names appear in any blacklist or defaulter list referred to by PNB/ HSBC will not be issued a Card. Annual income The minimum annual income requirement for applying under the two categories of the PNB Credit Card are as under: PNB Gold Card - Rs.1, 75,000/- p.a. PNB Classic Card -- Rs.72, 000/- p.a.
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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.
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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.
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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. Type of Research:This research is Descriptive in nature. Descriptive research is used to describe something – usually market characteristics , functions behavior .
• Research Plan
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DR.IT.IMT. 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 Primary data has been collected with the help of Questionnaires. •
Secondary data
The secondary data was gathered from the websites.
• Questionnaire structure For the research multiple choice type of questions were prepared to collect primary data from the respondents.
• Sampling Plan The plan includes the following-:
Sampling units
Sampling units consist of all kind bank customer. Sample Size:
I have covered 150 bank customers in Patiala. Population:- The population for the research includes bank’s customers.
Types of Data: Rajesh kumar
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DR.IT.IMT. 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 gathered through questionnaire.
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QUESTIONNAIRE ANALYSIS :Q 1:- Are you aware of Plastic money?
Yes
127
No
23
No 15%
Yes 85% Yes No
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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
Any Other 7% Friends/Relative s 28%
Newspaper 9%
Bank Employee 18%
Media 38% Bank Employee Media Newspaper Friends/Relatives Any Other
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DR.IT.IMT. Q. 3:- While opening an account, would you prefer the facility of plastic money?
Always
97
Most Likely
21
Sometimes
6
Never
3
Sometimes 5% Most Likely 17%
Never 2%
Always 76%
Always Most Likely Sometimes Never
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Q 4:- Do you have?
Debit Card
41
Credit Card
52
Both
7
None
27
None 21%
Debit Card 32%
Both 6%
Credit Card 41%
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Debit Card Credit Card Both None
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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
All of above 6%
Any other 2%
Safety Solution 19%
Fast Transaction 31% Handling Solution 23% Convinient 19%
Safety Solution Handling Solution Convinient Fast Transaction All of above Any other
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Q 6:- How often do you use your card?
Daily
5
Weekly
59
Monthly
36
Monthly 36%
Daily 5%
Weekly 59% Daily Weekly Monthly
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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
Public Sector Bank 31%
Private Sector Bank 69% Private Sector Bank Public Sector Bank
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Q. 8:- For which purpose do you use your card ? Cash Withdraw
39
Shopping Bill
24
Travelling
11
Dining Bill
18
Any Other
8
Dining Bill 18%
Travelling 11%
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Any Other 8%
Shopping Bill 24%
Cash Withdraw 39%
Cash Withdraw Shopping Bill Travelling Dining Bill Any Other
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Q. 9:- Do you agree that plastic money reduces Harassment and time ? Strongly Agree
11
Agree
23
Sometimes
48
Disagree
13
Strongly Disagree
Disagree 13%
5
Strongly Disagree 5%
Strongly Agree 11% Agree 23%
Sometimes 48%
Strongly Agree Agree Sometimes Disagree Strongly Disagree
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DR.IT.IMT.
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
Sometimes 15%
Never 9%
Always 19%
Most Likely 57%
Always Most Likely Sometimes Never
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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 Disagree 20%
Strongly Agree 31%
Disagree 12% Sometimes 15%
Agree 22%
Strongly Agree Agree Sometimes Disagree Strongly Disagree
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Q. 12:- Your opinion about your plastic card ?
Good
41
Average
29
Satisfied
19
Poor
11
Poor 11% Satisfied 19%
Good 41%
Average 29%
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Good Average Satisfied Poor
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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.
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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.
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41 % of the bank customers response that their opinion about the plastic card is good, 29 % say average, 19 % satisfied and the rest 11 % go for poor.
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 money provided by various banks like HDFC and PNB Bank.
● 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.
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DR.IT.IMT. ● 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.
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• 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 benfits of plastic money.
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● 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
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● http://economictimes.indiatimes.com/Money_Matters/Credit_Cards/ News/Plastic_money_use_gains_pace_in_India/articleshow/msid1268620,curpg-2.cms ● http://www.cinechance.com/a/how-to-get-best-out-of-your-plasticmoney.html
● RESEARCH METHODOLOGY ,MOHIT GUPTA,NAVDEEP AGGARWAL
QUESTIONNAIRE Dear respondent, I am a student of BBA,affiliated to Punjab Technical University Jalandhar 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. ____________________________________________________________________ Q 1:- Are you aware of Plastic money? Yes
No
Q 2:- If Yes, how did you come to know about plastic money? Bank employee Rajesh kumar
Media 63
DR.IT.IMT. Newspaper
Any other please specify ____________
Friends/Relatives Q. 3:- While opening an account, would you prefer the facility of plastic money ? Always
Most likely
Sometimes
Never
Q 4- Do you have? Debit card Both
Credit card None
Q 5:- Reasons for which you have opted for card? Safety solution
Handling solution
Convenient
Fast transaction
All of above
Any other specify________________
Q 6:- How often do you use your card? Daily
Weekly
Monthly Q. 7 :- Your card belongs to which bank Private sector Bank
1…………… 2…………………..
Public sector Bank
1…………………
2……………………..
Q. 8. :- For which purpose do you use your card? Cash Withdraw
Shopping Bill
Traveling
Dinning Bill
Any Other
Please
Specify ...................................................... Q. 9:- Do you agree that plastic money reduces Harassment and time ? Strongly Agree
Agree
Sometimes
Disagree
Strongly Disagree Rajesh kumar
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DR.IT.IMT. 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
_____________________________________________
Contact No.
_____________________________________________
AGE
18-25
25-40
SEX
Male
Female
QUALIFICATION OCCUPATION
Under graduate Self employed
ANNUAL SALARY/INCOME
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40 & above . Graduate
Post graduate
salaried <1 LAC
professional 1-5 LAC
>5 LAC
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