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,

1
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. 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.

2
3
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 detectable and carry an audit

4
trail as well.

Most times, people find using online creditcard 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
5
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.

6
 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
7
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.

8
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.

9
 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 - 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.

10
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

11
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/- .

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.

12
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.

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

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.

14
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

15
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.

16
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.

17
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.

18
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.

19
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.

20
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.

21
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.

22
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

23
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.

24
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,
25
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. 4.

26
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

Gold 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.

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 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.

Wide House hold Extra Redemption Accelerated reward

acceptance. Insurance. protection for of points.
family. accumulated
reward points
against
airmiles, gifts,
GVs etc.

Cash Advance. Cash Interest free Redemption of

Advance. credit period. accumulated reward
points against airmiles,
gifts, GVs etc.

Accidental Interest free credit

Death cover period.
Interest rates applicable on Revolving credit:
2.95% per 2.95% per 2.95% per 2.95% per 2.95% per month &
month & month & month & month & 35.4% annually
35.4% 35.4% 35.4% 35.4%
annually annually annually annually

29
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 Nationals who

have either their residence or office in any of the undernoted 23 cities, in India:

Mumbai Thiruvanthapuram Hyderabad

Ahmedabad Bangalore Pune

30
 New Delhi Vishakhapatnam Kochi/Cochin

Gurgaon Chandigarh Jalandhar

Calcutta Ludhiana Ghaziabad

Chennai Amritsar NOIDA

Jaipur Coimbatore Vadodara/Baroda

Indore(Recently
Faridabad
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.
No surcharge on purchase of petrol ranging Rs 400/- to 2500/- pm from
any petrol pump having EDC terminal accpeting accepting credit card.

31
Insurance Benefits

Classic Card Gold Card

Air accident Rs.15 lacs Rs.40 lacs
Other accident Rs.1.5 lacs Rs.4 lacs
Credit Shield Rs.20,000 Rs.40,000
Purchase protection Rs.30,000 Rs.50,000
Baggage insurance USD 600 USD 1,200
Enhanced Travel Insurance
Cover for Delayed baggage - USD 300
Cover for loss of travel documents - USD 500
Cover for hijack insurance - 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

32
 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.

33
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.

34
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.

35
 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

36
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:

37
 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.

38
QUESTIONNAIRE ANALYSIS :-

Q 1:- Are you aware of Plastic money?

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

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

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

Private Sector Bank 69

Public Sector Bank 31

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

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.

51
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

good, 29 % say average, 19 % satisfied and the rest 11 % go for poor.

52
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.

● 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.

53
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.

54
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.

● 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

55
 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

56
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.
____________________________________________________________________

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 Media

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 Credit card

Both None

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

57
 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

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