A

Research proposal on

“Relevance of Plastic money over Paper

money In the Economy”

In partial fulfillment for the requirements of Research Methodology course

in the Two Year Full-time Master of Business Administration Program,

Gujarat Technological University.

N R INSTITUTE OF BUSINESS MANAGEMENT, AHMEDABAD

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Preface

As a part of the course curriculum, the First year M.B.A students are required to prepare a project report. The main objective of preparing this project report is to explore the practical aspects of management subjects and apply the theory.

We have tried to study various aspects of consumer behavior through different surveys. This project is compiled on the basis of the facts and findings noted during the field survey and the information provided by the respondents. Also, references are taken from secondary data available from books, journals and other sources.

The scope of the project report is limited to a study of Relevance of plastic money over paper money. The project is restricted to the selected areas of Ahmedabad city covered under the survey.

Our work, in this project, is therefore, a humble attempt towards this end. We have made sincere efforts to make this project accurate and comprehensive. In spite of our best efforts, there may be errors of mission and commission which may please be excused.

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Acknowledgement:

We present this project report on “Relevance of plastic money over the paper money” with a senseof great pleasure and satisfaction. We undersign with pleasure to take thisopportunity to thank all those related directly or indirectly in preparation ofthis project report.We express our sincere thanks to Prof. AmitSonifor his support & guidance.

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Executive summary:

The recent growth in the use of plastic money mainly credit and debit cards has been phenomenal. There are hundreds of millions of credit cards in circulation today; these little rectangular pieces of polymerized substance have become a way of life. India alone is home to millions of them. Initially positioned as a status symbol these plastic cards have caught on in a big way amongst the educated population of the country.

Spending pattern through plastic money will change drastically. Traveling, dining and jewelry are the top three purchases that Indians make through credit cards. Two years ago, it was jewelry and apparel purchases that formed the largest chunk of purchases through plastic money. Fuel accounts for a very small portion of credit card purchases as these are largely paid through debit cards.

This growing trend will soon rise up to the point where the plastic money will completely replace the need for carrying cash.

Will this change be for good or bad only the future will decide.

Plastic Money business is definitely going big time. In a country where a decade back people have hardly heard the word plastic money or credit card. It has been estimated that there are likely to be around half million potential card users in the near future. This forecasting derives credibility from the fact that more and more local and international financial institutions are exhibiting enthusiasm in this direction. This in turn reflects prospects in India market in accommodating numerous credit card competitors operating on the circuit, ensuring healthy and competitive card business deals.

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Contents1. Research Methodology........................................................................................7

i. Objectives.........................................................................................................7

a) Primary objectives........................................................................................7

b) Secondary objectives....................................................................................7

ii. Research problem statement............................................................................7

a) Research problem..........................................................................................7

iii. Research objectives..........................................................................................8

iv. Research Design...............................................................................................8

v. Sample unit......................................................................................................8

vi. Sample size......................................................................................................8

vii. Sampling technique.......................................................................................9

viii. Data sources..................................................................................................9

a) Primary Sources............................................................................................9

ix. Survey Method.................................................................................................9

ii. Secondary Sources........................................................................................9

x. Literature review..............................................................................................9

xi. Importance of plastic money..........................................................................12

xii. Importance of paper money........................................................................13

2. Introduction of the Industry..............................................................................14

i. Banking industry overview:...........................................................................14

ii. Historical background:...................................................................................14

iii. General banking scenario in India:................................................................15

Structure of banking industry in India:......................................................................16

3. Introduction of the Company............................................................................17

i. State bank of India (Sbi)................................................................................17

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ii. Bank of baroda...............................................................................................18

iii. Bank of India..................................................................................................19

iv. Citibank..........................................................................................................19

4. Detailed Discussion on the scope of the project...............................................20

Cross tabulation....................................................................................................45

Hypothesis:...........................................................................................................50

5. Key findings......................................................................................................54

i. Limitation.......................................................................................................54

ii. Major findings................................................................................................54

iii. Suggestion......................................................................................................54

iv. Conclusion.....................................................................................................54

v. Bibliography...................................................................................................54

Annexure.................................................................................................................55

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1. Research Methodology

i. Objectives

It is rightly said the plastic money is need of hour. People are using these cards on a vast scale. But after considering the review of literature it is seen the whole payment process of processing these cards is not safe and customer are facing many problems relating to plastic money. That’s why study is focused on consumer perception regarding the plastic money.

Need of the study is to get to know about the comparative analysis of plastic money. There are many ethical issues and challenges in the market of plastic money which is required to be studied. This study is concerned with the Seven perks of plastic money Convenience, Budgeting technology, Reputation boosting, Corporate might, Cops and robbers, the float, Openness to negotiations.

a) Primary objectives

To know the perception of people towards plastic money over paper money.

b) Secondary objectives

To know the importance of plastic money in the daily life of consumers’ W.R.T credit and debit cards.

To study the benefits of debit card and credit cards.

To find out the market leader among the various banks/companies issuing credit and debit cards

To know the problems faced by respondents using plastic money.

To study the satisfaction level of consumers towards plastic money.

ii. Research problem statement

a) Research problem

Spending through credit cards rose by 30% year-on-year to Rs22,128 crore during the April-June quarter of 2011-12 against Rs16,948 crore last year, according to data released by the Reserve Bank of India (RBI). Spending through debit or ATM cards, increased by 45% year-on-year to Rs11,691 crore during the April-June quarter compared to Rs8,065 crore last year.

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“It’s a natural progression for country like India, which is growing rapidly and more people availing banking facilities,” said AnandSelvakesari, country business manager, global consumer group, Citibank. “However, there is still much potential left as penetration of plastic money in India is less than countries such as the US and China.”

However, the total number of credit cards in the country witnessed a marginal fall as total outstanding credit cards at the end of June 2011 declined 6% to 1.8 crore from 1.9 crore at the end of June 2010. On the contrary, the number of debit cards rose 25% to 24.0 crore at the end of June 2011 compared to 19.0 crore at the end of June 2010.

“The growing number of point-of-sale terminals in the country have also helped in increasing payment through credit and debit cards,” said M Narendra, chairman, Indian Overseas Bank.

However, bankers are likely to be cautious in selecting their customers for credit cards due to the uncertainty in the global economy. “We will continue expanding our cards base in India, but will select customers cautiously.

Therefore, the statement of the problem would be,

1. How can plastic cards usage be increased?

2. How can a country like India make maximum use of plastic cards?

iii. Research objectives

To identify the factors affecting the usage of plastic money.

To understand the future of plastic money in India.

iv. Research Design

The research will be exploratory followed by descriptive because the entire project is based on questionnaire and analysis so that the detailed description will be there in the project, so this will be descriptive design.

The nature of the study is statistical pertaining actual environmental conditions (field conditions).The reason for choosing this type of data is, qualitative research provides insights and understanding of problem setting while quantitative research seeks to quantify the data and typically applies some form of statistical analysis.

v. Sample unit

Individuals who are salaried people and students of various colleges.

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vi. Sample size

Total Sample size: 60

vii. Sampling technique

The sampling method used will be Non probability convenience sampling and random sampling.

viii. Data sources

a) Primary Sources:This data include both qualitative and quantitative data. Data are generated through questionnaire as a research instrument.

ix. Survey Method

Research Instrument:

i. Questionnaire

Types of Questionnaire:

Structured non-disguised,

Type of Questions:

Open-ended Close-ended questions

ii. Secondary Sources:This data will be collected from journals, internet, reports and Industrial publications.

x. Literature review

1) In this paper, we revisit the contents and method of Keynes’s Indian Currency and Finance(1971a). By focusing on the rationale of his proposal for a new international monetary system combining cheapness with stability, we argue that Keynes’s analysis of monetary developments in Asia in the first years of the twentieth century may provide useful hints for an overall rethinking of the major faults of today’s Bretton Woods II system. (2010–11)

2) The article reports on the problem regarding fake currency in India. It is said that the country's battle against fake currency is not getting easier and many fakes go undetected. It is also stated that counterfeiters hitherto had restricted printing facilities which made it easier to discover fakes. According to chief economist Soumendra K. Dash, the solution

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to the problem is to provide people incentive to use plastic cards and make cashless transactions. (3/8/2009)

By: Alvares, Cliford

3) The article reports on the plan of the Indian government to introduce plastic currency that will have enhanced security features to counter the growing problem of counterfeiting in the country. (Sep2012)

4) Reports on the use of polymers for currency as an alternative to paper money. Conversion of all of Australia's circulating notes; Marketing of the polymer bank note substrate by Securency Pty Ltd.; Use of the polymer for commemorative issues; Advantages offered by plastic bills.( Dec99)

5) The article offers tips on the use of credit and debit cards overseas. One should use credit or debit card to make purchases and debit card to get cash when one needs it. Both Visa and MasterCard charge currency-conversion fees on credit-card purchases. One can minimize fees by using the right card. HSBC, Washington Mutual and most credit unions don't add a surcharge. Withdrawing cash from an overseas ATM not part of one's bank network could cost $5 or more on top of the conversion fee. INSET: CREDIT CARDS.(9 Jun2006)

By: Goldwasser, Joan

6) Presents highlights of the report `Plastic Cards in Japan,' by Steve Worthington and Ronald Brown. Focuses on the development of a `smart' card in Japan, which looks like plastic credit cards but contain a microchip; Sophisticated and diverse applications for the card; Future forecast for the cards in the world market. (May/Jun91)

7) The article reports that paying cash is better for the environment than using a credit card. Credit cards, made of plastic, take decades to decompose, the computers that effect credit card transactions consume large amounts of energy, and most people in the U.S. still receive paper credit card statements. Bills, however, are made largely of materials like cotton, which creates less carbon emissions than paper when harvested. Also, bills stay in circulation for up to five years. (12/1/2008)

By: Stone, Daniel

8) This article discusses the competitive advantage held by conventional credit card issuers and what steps they can take in order to maintain their market share against online upstarts that offer lower interest rates. The article describes the fierce competition online to offer low interest rates and attract credit card applicants. The article states that incumbent credit card companies need to establish strong online presences and cut costs. The article suggests cutting costs by offering online account services and distributing advertising and customer acquisition costs over numbers of new accounts. (2000)

By: D'Silva, ViJay,Stephenson, Jack, Waitman, Robert M.

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9) The article offers pieces of advice on credit card use for college students in the U.S. from the Certified Public Accountants (CPAs). According to various surveys, reliance on credit card spending presents problems to college students. CPAs addressed the credit crisis through financial literacy and education programs for college students. One form is through accounting programs on college campuses with interaction to CPA firms. Increased awareness could be achieves through AICPA websites and financial literacy workshops. (Sep2008)

By: Hoffman, Michael J. R., McKenzie, Karen S.2, Paris, Susan3

10) The article presents credit cards as the best payment option for entrepreneurs. Paying by credit card is convenient, it allows business owners to maximize their cash flow, and it offers the accumulation of rewards or points that can add up to thousands in free services. For regularly recurring bills, however, nothing beats the convenience of automatic bill payment, the kind typically offered online through consumer and business checking accounts. Paying recurring bills automatically by credit card, which offers the best of both worlds, is catching on big with small businesses. (Jan2005)

By: Prince, C. J.

11) The article focuses on electronic transactions which are cheaper and more secure for businesses, reducing the possibility of employee theft and other concerns. Moreover, retailers favor debit cards because the fee charged by banks to process the transaction, typically 2 percent, is less than that on a credit card purchase. Personal finance experts say that the trend towards cashless living offers both peril and opportunity for consumers. For businesses, the trend means new opportunities to capture customer loyalty. Traditional credit card companies like VISA, which also issue debit cards, offer premiums based on the amount of spending cardholders do.(12/9/2003)

By: Bongiorni, Sara

12) The article offers tips on the use of credit and debit cards overseas. One should use credit or debit card to make purchases and debit card to get cash when one needs it. Both Visa and MasterCard charge currency-conversion fees on credit-card purchases. One can minimize fees by using the right card. HSBC, Washington Mutual and most credit unions don't add a surcharge. Withdrawing cash from an overseas ATM not part of one's bank network could cost $5 or more on top of the conversion fee. INSET: CREDIT CARDS. (Jun2006)

By: Goldwasser, Joan

13) Presents highlights of the report `Plastic Cards in Japan,' by Steve Worthington and Ronald Brown. Focuses on the development of a `smart' card in Japan, which looks like plastic credit cards but contain a microchip; Sophisticated and diverse applications for the card; Future forecast for the cards in the world market. (May/Jun91)

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14) The article focuses on the growth of debit cards for health savings accounts in the U.S. The cards can be used by patients to pay for their pharmaceuticals, medical equipment and hospital expenses, among others. According Jody Dietel of WageWorks, a debit card is the easiest and most cost-effective method for accessing their funds for health care. Despite the market exit of some players, the future of the debit cards is still optimistic for industry observers. (Oct2009)

BySHEPHERD, LEAH CARLSON,

15) In today's busy world, nobody has the time to withdraw money from the bank account for shopping. Everybody is interested in carrying the plastic money (credit card and debit card) in their wallet for shopping as it gives convenience, safety, easiness and even style. In this cutthroat competition, banks have to work hard to gain market share and to meet the expectations of customers so that they can delight their customers. This study is carried out to identify customer preferences and expectations from credit/debit card services. The main objective is to identify the factors that influence the choice of credit cards, customer satisfaction, and consumer behavior regarding the credit card in Tier-III cities. Primary data was collected from 200 respondents by the questionnaire method. Results show that the choice of credit card depends upon income, gender and profession of the respondent. Customer satisfaction depends upon income, frequency of usage in a month and amount of usage per month. (Feb2011)

By: Khurana, Sunayna1,Singh, S. P.

IUP Journal of Bank Management; Feb2011, Vol. 10 Issue 1, p71-87, 17p, 31 Charts

16) The article offers information regarding the increasing trend of using debit cards instead of cash amongst youth of the U.S. It states that spenders between 18-25 years of age prefer to swipe their debit cards even for petty expenses. It states that convenience and speed of such transactions are the factors responsible for the trend, however, those who don't keep a track of their bank balances face financial crisis. (6/17/2007)

By: Olson, Elizabeth

xi. Importance of plastic money Purchasing Power: Credit or Debit cards made it easier to purchase things. Now we

don’t have any need to carry hard cash in a large amount. Plastic money is accepted everywhere, anytime.

Time Saving: Through a credit card or debit card you can purchase anything from anywhere without spend money on fare or cash transition. Just provide your card details to seller store or companies and finalize your order. Now you don’t have need to worry about time wastes. Use internet for minimum time consuming.

Extra Safety: While you are not carrying cash, how can it be lost? But if your card has lost, just contact to your bank or financial institution, which provide you cards. It will block the account and nobody can draw a single coin without your permission. So it is 100% safe without any tension.

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Credit Limits: You get an extra amount to spend with your card. This extra spent money you can return before a fix time schedule or you will have to pay a little interest. So there is no problem to having less money. Just use money without any tension and

A need of emergencies: Think, that you have no time to go to bank or someone to get money, what will you do? Definitely you will use your credit or debit card which will give you confidence for your difficult time. We can say it a true friend which help us in need.

Additional features: Mostly credit card offer additional benefits, as discount from some particular stores, bonus in airline fare, free insurance policies and much more. This discounts and bonus encourages you to purchase more things as it is good for you.

xii. Importance of paper money It is economical. Paper is much cheaper than any other metal. It economizes the use of valuable metals, like gold and silver. There is no depreciation of metals in system 6f paper money. It is convenient to carry paper money from one place to the other. It is easy to store large amounts of paper money in a small vault. It can be easily replaced. Changes in the supply of money can be easily made in accordance with the requirements

of the economy.

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2. Introduction of the Industry

i. Banking industry overview:The banking industry in India has a huge canvas of history, which covers the traditional banking practices from the time of Britishers to the reforms period, nationalization to privatization of bank sand now increasing numbers of foreign banks in India. Therefore, Banking in India has been through a long journey. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. The majority of the banks are still successful in keeping with the confidence of the shareholders as well as other stakeholders. However, with the changing dynamics of banking business brings new kind of risk exposure.In this paper an attempt has been made to identify the general sentiments, challenges and opportunities for the Indian Banking Industry. This article is divided in three parts. Firstpart includes the introduction and general scenario of Indian banking industry. The second part discusses the various challenges and opportunities faced by Indian banking industry. Third part concludes that urgent emphasis is required on the Indian banking product and marketing strategies in order to get sustainable competitive edge over the intense competition from national and global banks. This article is a small seed to existing branch of

knowledge in banking industry and is useful forbankers, strategist, policy makers and research.

ii. Historical background:Bank of Hindustan was set up in 1870; it was the earliest Indian Bank. Later, three presidencybanks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank ofMadras were set up, which laid foundation for modern banking in India. In 1921, all presidencybanks were amalgamated to form the Imperial Bank of India. Imperial bank carried out limitednumber of central banking functions prior to establishment of RBI. It engaged in all types ofcommercial banking business except dealing in foreign exchange.Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted asan apex body without major government ownership. Banking Regulations Act was passed in1949. This regulation brought RBI under government control. Under the act, RBI got wide rangingpowers for supervision & control of banks. The Act also vested licensing powers & the authority toconduct inspections in RBI.In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State Bank ofIndia. In 1959, SBI took over control of eight private banks floated in the erstwhile princely states,making them as its 100% subsidiaries.

It was 1960, when RBI was empowered to force compulsory merger of weak banks with thestrong ones. It significantly reduced the total number of banks from 566 in 1951 to 85 in 1969. InJuly 1969, government nationalized 14 banks having deposits of Rs. 50 crores& above. In 1980,government acquired 6 more banks with deposits of more than Rs.200 crores. Nationalization ofbanks was to make them play the role of catalytic agents for economic growth. The NarasimhaCommittee report suggested wide ranging reforms for

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the banking sector in 1992 to introduceinternationally accepted banking practices. The amendment of Banking Regulation Act in 1993saw the entry of new private sector banks.Banking industry is the back bone for growth of any economy. The journey of Indian BankingIndustry has faced many waves of economic crisis. Recently, we have seen the economic crisisof US in 2008-09 and now the European crisis. The general scenario of the world economy isvery critical.It is the banking rules and regulation framework of India which has prevented it from the worldeconomic crisis. In order to understand the challenges and opportunities of Indian BankingIndustry, first of all, we need to understand the general scenario and structure of Indian BankingIndustry.

iii. General banking scenario in India:The general banking scenario in India has become very dynamic now-a-days. Before pre-liberalization era, the picture of Indian Banking was completely different as the Government ofIndia initiated measures to play an active role in the economic life of the nation, and the IndustrialPolicy Resolution adopted by the government in 1948 envisaged a mixed economy. This resultedinto greater involvement of the state in different segments of the economy including banking andfinance.The Reserve Bank of India was nationalized on January 1, 1949 under the terms of the ReserveBank of India (Transfer to Public Ownership) Act, 1948. In 1949, the Banking Regulation Act wasenacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect thebanks in India." The Banking Regulation Act also provided that no new bank or branch of anexisting bank could be opened without a license from the RBI, and no two banks could havecommon directorsBy the 1960s, the Indian banking industry had become an important tool to facilitate the speed ofdevelopment of the Indian economy. The Government of India issued an ordinance andnationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Asecond dose of nationalization of 6 more commercial banks followed in 1980. The stated reasonfor the nationalization was to give the government more control of credit delivery. With the seconddose of nationalization, the Government of India controlled around 91% of the banking businessof India. Later on, in the year 1993, the government merged New Bank of India with PunjabNational Bank. It was the only merger between nationalized banks and resulted in the reductionof the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalizedbanks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.In the early 1990s, the then NarasimhaRao government embarked on a policy of liberalization,licensing a small number of private banks.The next stage for the Indian banking has been set up with the proposed relaxation in the normsfor Foreign Direct Investment, where all Foreign Investors in banks may be given voting rightswhich could exceed the present cap of 10%, at present it has gone up to 74% with somerestrictions.The new policy shook the Banking sector in India completely. Bankers, till this time, were used tothe 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this ledto the retail boom in India. People not just demanded more from their banks but also receivedmore.

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Structure of banking industry in India: Banking Industry in India functions under the sunshade of Reserve Bank of India - the regulatory,central bank. Banking Industry mainly consists of:

1) Commercial Banks2) Co-operative Banks

The commercial banking structure in India consists of: Scheduled Commercial BanksUnscheduled Bank. Scheduled commercial Banks constitute those banks which have beenincluded in the Second Schedule of Reserve Bank of India (RBI) Act, 1934.RBI in turn includes only those banks in this schedule which satisfy the criteria laid down videsection 42 (60) of the Act. Some co-operative banks are scheduled commercial banks althoughnot all co-operative banks are. Being a part of the second schedule confers some benefits to thebank in terms of access to accommodation by RBI during the times of liquidity constraints. At thesame time, however, this status also subjects the bank certain conditions and obligation towardsthe reserve regulations of RBI.For the purpose of assessment of performance of banks, the Reserve Bank of India categories them as public sector banks, old private sector banks, new private sector banks and foreignbanks.

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3. Introduction of the CompanyMajor Banks Issuing Credit Card In India

State Bank of India credit card (SBI credit card) Bank of Baroda credit card or BOB credit card ICICI credit card HDFC credit card IDBI credit card Citibank credit card

i. State bank of India (Sbi)

State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. Government of India nationalised the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians(NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country.

SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.

The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

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ii. Bank of baroda

Bank of Baroda (BoB) is an Indian state-owned banking and financial services company headquartered in Baroda, or Vadodara. It offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates in the areas of retail banking, investment banking, credit cards, and asset management. Its total global business was   8,021 billion as of 31 March 2013, making it the second largest Bank in India after State Bank of India.In addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in the BandraKurla Complex in Mumbai.

Based on 2012 data, it is ranked 715 on Forbes Global 2000 list. BoB has total assets in excess of   3.58 trillion (short scale),  3,583 billion (long scale), a network of 4283 branches (out of which 4172 branches are in India) and offices, and over 2000 ATMs.

The bank was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat.[7]The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).

Industrial credit and Investment Corporation of India

ICICI Bank is an Indian multinational bank and financial services company headquartered in Mumbai. Based on 2013 information, it is the second largest bank in India by assets and third largest by market capitalisation. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 3,350 branches and 10,486 ATM's in India, and has a presence in 19 countries.

ICICI Bank is one of the Big Four banks of India, along with State Bank Of India, Punjab National Bank and Canara Bank.

The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany.

In March 2013, Operation Red Spider showing high-ranking officials and some employees of ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank suspended 18 employees and faced penalties from the Reserve Bank of India in relation to the activity

Housing development finance corporation

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HDFC Bank Limited  is an Indian financial services company based in Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth largest bank in India by assets and the largest bank by market capitalization as of 1 November 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on August 2013, HDFC Bank has 3,119 branches and 11,088 ATMs, in 1,891 cities in India, and all branches of the bank are linked on an online real-time basis. As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5167.07 core (US$790 million), up 31.6% from the previous fiscal.

On 14 March 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high ranking officials and some employees of HDFC bank willing to turn black money into white which is violation of Money Laundering Control Act. Following this the government of India and RBI have ordered an inquiry. The enquiry confirmed violation of KYC (Know Your Customer) norms by HDFC Bank. A penalty of Rs 45 million was imposed on the bank by RBI.

iii. Bank of India Bank of India (BoI) is an Indian state-owned commercial bank with headquarters

in Mumbai, Maharashtra, India. Government-owned since nationalisation in 1969, It is India's 4th largest PSU bank, after State Bank of India, Punjab National Bank and Bank of Baroda. It has 4322 branches as on 8 August,2013, including 54 branches outside India, and about ATMs.BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services. The Bank completed its first one hundred years of operations on 7 September 2006.

iv. Citibank

Citibank is the consumer banking division of financial services multinational Citigroup. Citibank

was founded in 1812 as the City Bank of New York, Citibank India is an Indian private sector

bank headquartered in Mumbai, Maharashtra. It is a subsidiary of Citigroup,

a multinational financial services corporation from Manhattan, US.

Established in 1902 in Calcutta (Kolkatta), Citibank has a long history in India. Currently it is the

largest foreign direct investor in financial services in India with a total capital commitment of

approximately US$ 4 Billion in its onshore banking and financial services business and its

principal and alternate investment programmes.

It operates 41 full-service Citibank branches in 40 cities and over 700 ATMs across the country.

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4. Detailed Discussion on the scope of the project

Basic Information:

1. Gender

Statistics

NValid 60

Missing 0Mean 1.4500

Median 1.0000Mode 1.00

Std. Deviation .50169

Gender

Frequency Percent Valid Percent

Cumulative Percent

Valid

Male 33 55.0 55.0 55.0

female 27 45.0 45.0 100.0

Total 60 100.0 100.0

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Interpretation:The survey conducted on the plastic money, where majority of the 33 males are using plastic money which is comes to 55%. And 27 females are using plastic money which comes to 45% out of the total.

2. Age:Statistics

NValid 60

Missing 0

Mean 1.9500

Median 2.0000Mode 1.00Std. Deviation 1.04840

Age

Frequency Percent Valid Percent

Cumulative Percent

Valid

18-25 27 45.0 45.0 45.0

25-35 15 25.0 25.0 70.0

35-50 13 21.7 21.7 91.7

above50 4 6.7 6.7 98.3

5.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

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Interpretation:

The survey conducted on the plastic money, where majority of the age group are from the 18-25

which shows the major acceptance of plastic money in the youngsters.Out of the people who

were surveyed 45% of the people were in the age group of 18-25. And then comes 25% of the

ratio as the people in the age group of 25-35. Then 21.7% people were from the age group 35-50.

At last only 6.7% people participated in the survey were from the age group 50 and above.

3. ProfessionStatistics

NValid 60

Missing 0Mean 2.4500

Median 2.0000

Mode 1.00

Std. Deviation 1.41930

Profession

Frequency Percent Valid Percent

Cumulative Percent

Student 22 36.7 36.7 36.7

Business 10 16.7 16.7 53.3

Service 16 26.7 26.7 80.0

Govt. employee 3 5.0 5.0 85.0

Others 9 15.0 15.0 100.0

Total 60 100.0 100.0

Interpretation:

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The survey conducted on the plastic money, where majority are from the student and second are the people who are from the service background who generally prefer to use the plastic money instead of the paper money due to the convenience. Out of the people who were surveyed 36.7% are the students, 16.7% are from the business background, 26.7% people are from the service background, 5% of the people are the government employee and the remaining 15% people are the other who use plastic money.

4. Annual income:Statistics

NValid 60

Missing 0

Mean 1.4833

Median 1.0000

Mode 1.00

Std. Deviation .74769

Annual income

Frequency Percent Valid Percent

Cumulative Percent

Valid

0-180000 39 65.0 65.0 65.0

180000-300000 14 23.3 23.3 88.3

300000-500000 6 10.0 10.0 98.3

above500000 1 1.7 1.7 100.0

Total 60 100.0 100.0

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Interpretation:

The survey conducted on “paper money and plastic money” was then bifurcated in the area of

annual income.The people who were surveyed were from the annual income as, 65% people are

having less than 2lacs income, 23.3% people are having 2-5 lacs income,10% people are having

3-5lacs income and at last remaining 1% people are having above 5 lacs income. This shows that

people are having less income are very often using the plastic money which show growth in

using plastic money over the paper money.

5. Marital status:Statistics

NValid 60

Missing 0

Mean 1.5000

Median 1.5000

Mode 1.00a

Std. Deviation .50422

Marital status

Frequency Percent Valid Percent

Cumulative Percent

24 | P a g e

Valid

Single 30 50.0 50.0 50.0

married 30 50.0 50.0 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on plastic money, where the percentage that we have got after the analysis of the respondent was the same. Half of the respondent are single who are using the plastic money and half of the respondent are married who are using the plastic money instead of the paper money.

6. No of family members:Statistics

NValid 60

Missing 0Mean 1.7500Median 2.0000Mode 1.00Std. Deviation .79458

No of family membersFrequency Percent Valid

PercentCumulative

Percent

Valid upto4 27 45.0 45.0 45.0

4to6 22 36.7 36.7 81.7

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above6 10 16.7 16.7 98.3

4.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:

The survey conducted on the plastic money, where majority of family having member of 4

people i.e., 45% of total respondent and 36.7% of the respondents are having the 4 to 6 member

in the family, 16.7% of the respondents are having the above 6 members in the family.

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Question: 1. Do you have idea about plastic money? which?Statistics

NValid 60

Missing 0Mean 2.5833Median 3.0000Mode 3.00Std. Deviation .76561

Do you have idea about plastic money?which?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Creditcard 10 16.7 16.7 16.7

Debitcard 5 8.3 8.3 25.0

ATM card 45 75.0 75.0 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the plastic money, where we asked the question that do you have any idea about the plastic money and which? The entire respondents are having idea about the plastic money and we live at the age of plastic money, and according to the survey people are now much aware about the plastic money and their usage. Most popular among the ATM, Debit, Credit, is the ATM card.

27 | P a g e

Question: 2. Do you have plastic money?

Statistics

NValid 60

Missing 0Mean 2.5333Median 3.0000Mode 3.00Std. Deviation .79119

Do you have plastic money?

Frequency Percent Valid Percent

Cumulative Percent

Valid

credit card 11 18.3 18.3 18.3

debit card 6 10.0 10.0 28.3

ATM card 43 71.7 71.7 100.0

Total 60 100.0 100.0

Interpretation:As per the survey the awareness of the ATM card is considerable among the people. Which is of 71.4% out of the total respondents, so the direct variation is, as the awareness for the ATM card is much among the people is the preference for the ATM card and 18.3% respondents are having the credit card. And the remaining 10% are having the debit card.

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Question: 3. According to you which are the most convenient way to pay?Statistics

NValid 60

Missing 0Mean 1.8000Median 2.0000Mode 1.00Std. Deviation .77678

According to you which are the most convenient way to pay?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Cash 25 41.7 41.7 41.7

Card 22 36.7 36.7 78.3

Both 13 21.7 21.7 100.0

Total 60 100.0 100.0

Interpretation:As per the survey on “paper money and plastic money”, when it was surveyed on the topic as the most convenient way to pay, people still prefer paper money i.e., cash over the plastic money. 41% are preferred to pay the bill by cash. Other 36% are preferred to pay the bill is through card And there are the people who prefer both way for the convenient payment which is 21%.

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Question: 4. How do you prefer to pay your utilities bills?Statistics

NValid 60

Missing 0Mean 1.5333Median 1.0000Mode 1.00Std. Deviation .96492

How do you prefer to pay your utilities bills?

Frequency Percent Valid Percent Cumulative Percent

Valid

Cash 43 71.7 71.7 71.7

Card 6 10.0 10.0 81.7

ECS 8 13.3 13.3 95.0

Cheque 2 3.3 3.3 98.3

DD 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:

Paper money that is cash is the most acceptable option for the payment of the billswhich is

71.7% out of the total respondents. Then the bills are paid by the cards i.e. by any card whether it

is debit card or credit card or the ATM 10% of the total respondents are prefer to paythe bills.

The payment of bills also does through cheques which is 3.3% of the total respondents. Then

comes the ECS (electronic clearance system) which is 13.3% of the total respondents. The least

payment of bills is done through DD (demand draft) which is 1.7% of the total respondents. It is

used when individual’s wants to make transfer payments from one bank account to that of other

account.

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Question: 5. How do you make payment for purchases of household consumables?

Statistics

NValid 60

Missing 0Mean 1.467Median 1.000Mode 1.0Std. Deviation .8727

How do you make payment for purchases of household consumables?

Frequency Percent Valid Percent

Cumulative Percent

Valid

cash 46 76.7 76.7 76.7

card 1 1.7 1.7 78.3

cheque 12 20.0 20.0 98.3

ECS 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the “plastic money and paper money “where the most of the respondents are making their payment for the household is through cash which is 76%., the other most frequently use for the payment is through cheque which is 20%. And the remaining way of payment modes are card and the ECS which are having least important than the other way of the payment. That whole thing will indicate that people are still not ready to use the plastic money over the paper money for the household consumable.

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Question: 6. How do you make payment for purchases of luxury and durable

goods?Statistics

NValid 60

Missing 0Mean 2.0333Median 1.5000Mode 1.00Std. Deviation 1.16396

How do you make payment for purchases of luxury and durable goods?

Frequency Percent Valid Percent

Cumulative Percent

Valid

cash 30 50.0 50.0 50.0

card 7 11.7 11.7 61.7

cheque 14 23.3 23.3 85.0

ECS 9 15.0 15.0 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the plastic money and the paper money where we are studying the making payment for the luxury and the durable goods. So for the result came out that 50% of the total respondents are making payment through the cash, 11.7% are making payment through the cards, 23.3% are making the payment through the cheques, 15% are making the payment through the ECS for the luxury and durable goods.

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Question: 7. While travelling, according to you which is the preferred way of payment?

Statistics

NValid 60

Missing 0Mean 1.2833Median 1.0000Mode 1.00Std. Deviation .64022

While travelling,according to you which is the preferred way of payment?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Cash 49 81.7 81.7 81.7

Card 5 8.3 8.3 90.0

travellers cheque

6 10.0 10.0 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the plastic money and paper money, where we find that 81.7% respondents are prefer to their bill while travelling through the cash, where there is only 8.3% respondents are making their payment through card. and remaining 10% are wito pay their bill through the travelling cheques. At last all of the options such as paper money i.e. cash, plastic money i.e. card credit card, debit card, ATM), TC (travelers cheque), cheque, DD (demand draft) is preferred.

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Question: 8. Do you find use of credit card/plastic money to be safest modes of transaction?

Statistics

NValid 60

Missing 0Mean 1.3000Median 1.0000Mode 1.00Std. Deviation .61891

Do you find use of credit card/plastic money to be safest modes of transaction?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Yes 47 78.3 78.3 78.3

No 8 13.3 13.3 91.7

no comments 5 8.3 8.3 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the plastic money and paper money where 78.8% respondents are saying yes that plastic money is better mode of transaction compared to other mode and only 8.3% are saying no that plastic money/card is not safest mode of the transaction.The people are now being getting more aware for plastic money and its usefulness and hence they have started preferring plastic money.

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Question: 9. Why do you not prefer paper money?

Statistics

NValid 60

Missing 0Mean 1.3000Median 1.0000Mode 1.00Std. Deviation .56148

Why do you not prefer paper money?

Frequency Percent Valid Percent

Cumulative Percent

Valid

fear of theft 45 75.0 75.0 75.0

increasing duplicity 12 20.0 20.0 95.0

wear and tear of paper money

3 5.0 5.0 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on plastic money and paper money, where 75% respondents are having fear of theft while making payment through paper money. And 20% respondents are having doubt that there is chance of duplicity of paper money and the remaining 5% are having fear and wear of the paper money that’s why now a days plastic money’s use is increasing day by day.

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Question: 10. Do you find credit card to be an expensive as many other

chargers are charged on it?Statistics

NValid 60

Missing 0Mean 1.3667Median 1.0000Mode 1.00Std. Deviation .48596

Do you find credit card to be an expensive as many other chargers are charged on it?

Frequency Percent Valid Percent

Cumulative Percent

Valid

yes 38 63.3 63.3 63.3

no 22 36.7 36.7 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on the plastic money and paper money where we have surveyed that do you fine credit card to be an expensive as compare to other so nearly 63.3% respondents are saying yes for the same and remaining 36.7% saying no for the same.

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Question: 11. Do you find it cheaper and beneficial as if gives you one month credit for payment?

Statistics

NValid 60

Missing 0Mean 1.4167Median 1.0000Mode 1.00Std. Deviation .53016

Do you find it cheaper and beneficial as if gives you one month credit for payment?

Frequency Percent Valid Percent

Cumulative Percent

Valid

yes 36 60.0 60.0 60.0

no 23 38.3 38.3 98.3

3.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on plastic money and paper money where we have asked that do you find credit card as cheaper and beneficial mode 60% of the respondents are saying yes it is cheaper mode for the payment and the remaining 38.3% respondents are saying no for the same.

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Question: 12. Which you consider more reliable and secured?Statistics

NValid 60

Missing 0Mean 2.0000Median 2.0000Mode 2.00Std. Deviation .84372

Which you consider more reliable and secured?

Frequency Percent Valid Percent

Cumulative Percent

Valid

paper money 19 31.7 31.7 31.7

plastic money 24 40.0 40.0 71.7

Both 15 25.0 25.0 96.7

no comments 2 3.3 3.3 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on plastic money and paper money where we have asked which of the mode you consider as reliable and secured and as the result we find that 31.7% respondents are saying paper money is the reliable and secured mode for the payment, 40% respondents are saying that plastic money is the better as compared to other and remaining 25% are agreed on the both statement and only 3% are having no comment regarding this statement.

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Question: 13. Which can be carried and kept easy and has more life?Statistics

NValid 60

Missing 0Mean 1.6833Median 2.0000Mode 2.00Std. Deviation .50394

Which can be carried and kept easy and has more life?

Frequency Percent Valid Percent

Cumulative Percent

Valid

paper money 20 33.3 33.3 33.3

plastic money 39 65.0 65.0 98.3

3.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:The survey conducted on plastic money and paper money where we asked that which can be easy to carry and has more life and as result we get that 65% are favor of plastic money as it is easy to carry and has long life and only 33.3% respondents are in favor of the paper money.

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Question: 14. Due to duplicity of paper money are you shifting to plastic money?

Statistics

NValid 60

Missing 0Mean 1.5500Median 1.5000Mode 1.00Std. Deviation .62232

Due to duplicity of paper money are you shifting to plastic money?

Frequency Percent Valid Percent

Cumulative Percent

Valid

yes 30 50.0 50.0 50.0

no 28 46.7 46.7 96.7

3.00 1 1.7 1.7 98.3

4.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:

A survey conducted on the plastic money and paper money where we have asked that due to

duplicity of the paper money are you shifting to plastic money and as result we get that 50%

respondents are saying yes and 46% are saying no for the same.

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Question: 15. Which type of security measurement you expect for stepping

misuse of plastic money?Statistics

NValid 60

Missing 0Mean 2.4667Median 3.0000Mode 3.00Std. Deviation .94719

Which type of security measurement you expect for stepping misuse of plastic money?

Frequency Percent Valid Percent

Cumulative Percent

Valid

password 15 25.0 25.0 25.0

photo card 6 10.0 10.0 35.0

PIN 35 58.3 58.3 93.3

biological imprints 4 6.7 6.7 100.0

Total 60 100.0 100.0

Interpretation:A survey conducted on plastic money and paper money where we have asked that which type of security measurement you expect for stopping misuse of plastic money, so as a result we get that 25% respondents are saying that they want password security, 10% respondents are saying that they want photo card, 58.3% respondents are saying that they want PIN for the security and remaining 6.7% respondents are saying that they want biological imprints for the security.

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Question: 16. Do you think that there should be any limit on daily/monthly

transaction value?Statistics

NValid 60

Missing 0

Mean 1.8500

Median 2.0000

Mode 1.00a

Std. Deviation .77733

Do you think that there should be any limit on daily/monthly transaction value?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Yes 23 38.3 38.3 38.3

No 23 38.3 38.3 76.7

no comments 14 23.3 23.3 100.0

Total 60 100.0 100.0

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Interpretation:Among the paper money and plastic money both are preferred as daily/monthly transaction. But for the daily/monthly transaction plastic money is used a bit little more than paper money.

Question: 17. Do you think that plastic money will penetrate in society more

in future?Statistics

NValid 60

Missing 0Mean 1.2500Median 1.0000Mode 1.00Std. Deviation .47389

Do you think that plastic money will penetrate in society more in future?

Frequency Percent Valid Percent

Cumulative Percent

Valid

Agree 46 76.7 76.7 76.7

disagree 13 21.7 21.7 98.3

3.00 1 1.7 1.7 100.0

Total 60 100.0 100.0

Interpretation:

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We live at the age of plastic money. People are now getting aware about the plastic money and

their usage. Majority of the people agreed that plastic money usage will be more in the future. As

we survey and find the result that 76.7% respondents are agree on the statement and the

remaining 24% are disagreed on the statement.Question: 18. Do you think that more credit/debit card transaction in country over cash transaction will help to grab black money circulation in economy?

Statistics

NValid 60

Missing 0Mean 1.8000Median 2.0000Mode 1.00Std. Deviation .85964

Do you think that more credit/debit card transaction in country over cash transaction will help to grab black money circulation in

economy?

Frequency

Percent Valid Percent

Cumulative Percent

Valid

Yes 29 48.3 48.3 48.3

No 14 23.3 23.3 71.7

no comments 17 28.3 28.3 100.0

Total 60 100.0 100.0

Interpretation:

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Proceeded by the increasing use of plastic money i.e. through cards. The circulation of money

increases in the market. So with the increasing cash liquidity in the market there is a major

possibility of the black money circulation in the market. as a result we get that 48.3% respondent

are saying yes for the statement, 23.3% respondents are saying no for the same statement and the

remaining 28.3% respondents are having no comment on this particular topic.

Cross tabulation1). Do you have idea about plastic money? which? Do you have plastic money?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Do you have idea about plastic money?which? * Do you have plastic money?

60 100.0% 0 0.0% 60 100.0%

Do you have idea about plastic money?which? * Do you have plastic money?

Cross tabulationCount

Do you have plastic money? Total

credit card

debit card ATM card

Do you have idea about plastic money?Which?

Creditcard 5 1 4 10

Debitcard 1 3 1 5

ATM card 5 2 38 45Total 11 6 43 60

Interpretation:

Out of 60 respondent 38 have an idea about ATM card as plastic money.

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2). According to you which is the most convenient way to pay?

How do you make payment for purchases of household consumables?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

according to you which is the most convenient way to pay? * how do you make payment for purchases of household consumabels?

60 100.0% 0 0.0% 60 100.0%

According to you which is the most convenient way to pay? * How do you make payment for purchases of household consumables?

CrosstabulationCount

How do you make payment for purchases of household consumables?

Total

cash card cheque ECS

According to you which is the most convenient way to pay?

cash 20 0 5 0 25

card 17 1 3 1 22

both 9 0 4 0 13Total 46 1 12 1 60

Interpretation:Out of 60respondentsaccording to 20 the most convenient way for payment is cash for purchase of household consumables.

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2). According to is the most convenient way to pay?

How do you make payment for purchases of luxury and durable goods?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

According to you which is the most convenient way to pay? * How do you make payment for purchases of luxury and durable goods?

60 100.0% 0 0.0% 60 100.0%

According to you which are the most convenient way to pay? * How do you make payment for purchases of luxury and durable goods?

CrosstabulationCount

How do you make payment for purchases of luxury and durable goods?

Total

cash card cheque ECS

according to you which is the most convenient way to pay?

cash 12 5 4 4 25

card 14 2 3 3 22

both 4 0 7 2 13Total 30 7 14 9 60

Interpretation:

Out of 60 respondents according to 14 cards is the most convenient way to pay for purchases for luxury and durable goods.

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3) Do you find use of credit card/plastic money to be safest modes of transaction?Why do you not prefer paper money?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Do you find use of credit card/plastic money to be safest modes of transaction? * Why do you not prefer paper money?

60 100.0% 0 0.0% 60 100.0%

Do you find use of credit card/plastic money to be safest modes of transaction? * Why do you not prefer paper money?

CrosstabulationCount

Why do you not prefer paper money? Total

fear of theft

increasing duplicity

wear and tear of paper

money

Do you find use of credit card/plastic money to be safest modes of transaction?

Yes 33 12 2 47

No 8 0 0 8

no comments

4 0 1 5

Total 45 12 3 60

Interpretation:

Out of 60 respondents 33 are having fear of theft of the paper money that’s why people are

shifting to plastic money.

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4). Do you have plastic money?Which type of security measurement you expect for stopping misuse of plastic money?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Do you have plastic money? * Which type of security measurement you expect for stepping misuse of plastic money?

60 100.0% 0 0.0% 60 100.0%

Do you have plastic money? * Which type of security measurement you expect for stepping misuse of plastic money?

CrosstabulationCount

Which type of security measurement you expect for stepping misuse of plastic money?

Total

password photo card PIN biological imprints

Do you have plastic money?

credit card 5 1 5 0 11

debit card 1 1 3 1 6

ATM card 9 4 27 3 43Total 15 6 35 4 60

Interpretation:Out of 60 respondent 27 have an ATM card as plastic money and they use it as a security measurement for stepping misuse of plastic money

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Hypothesis:Question: 1. Do you have plastic money?

Null Hypothesis: People do not have plastic money. Alternative Hypothesis: People have plastic money.

One-Sample Statistics

N Mean Std. Deviation

Std. Error Mean

Do you have plastic money?

60 2.5333 .79119 .10214

One-Sample Test

Test Value = 0

T df Sig. (2-tailed) Mean Difference

95% Confidence Interval of the

Difference

Lower Upper

Do you have plastic money?

24.802 60 .000 2.53333 2.32892.737

7

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2. According to you which are the most convenient way to pay? Null Hypothesis: plastic money is not the most convenient way to pay. Alternative Hypothesis: Plastic money is the most convenient way to pay.

One-Sample Statistics

N Mean Std. Deviation

Std. Error Mean

According to you which is the most convenient way to pay?

60 1.8000 .77678 .10028

One-Sample Test

Test Value = 0

T Df Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower Upper

According to you which is the most convenient way to pay?

17.949 59 .000 1.80000 1.5993 2.0007

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3. Do you find use of credit card/plastic money to be safest modes of transaction? Null Hypothesis: Plastic money is not the safest modes of transaction. Alternative Hypothesis: Plastic money is the safest modes of transaction.

One-Sample Statistics

N Mean Std. Deviation

Std. Error Mean

Do you find use of credit card/plastic money to be safest modes of transaction?

60 1.3000 .61891 .07990

One-Sample Test

Test Value = 0

T df Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower Upper

Do you find use of credit card/plastic money to be safest modes of transaction?

16.270 59 .000 1.30000 1.1401 1.4599

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4. Which type of security measurement you expect for stopping misuse of plastic money?

Null Hypothesis:People do not want the security measurement for stopping misuse of plastic money.

Alternative Hypothesis: People do want the security measurement for stopping misuse of plastic money.

One-Sample Statistics

N Mean Std. Deviation

Std. Error Mean

Which type of security measurement you expect for stopping misuse of plastic money?

60 2.4667 .94719 .12228

One-Sample Test

Test Value = 0

T Df Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower Upper

Which type of security measurement you expect for stepping misuse of plastic money?

20.172 59 .000 2.46667 2.2220 2.7114

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5. Key findings

i. Limitation1) Due to lack of time, manpower and money we could collect the information from only 60

people.2) If we would be able to inquire more people, then results would be more accurate.

ii. Major findingsCitibank is the largest issuer of credit cards in India commanding over 50% of the marketshare.

1) India’s credit cards base was around 8.5 million in 2002. The potential is estimatedaround 128 million

2) Total card spend grew by 75% from 2002 to 2006 reaching 1.5$ million in 20063) Card spending is expected to zoom at an annual rate of 50% over 2006-07 driven by

25-30% annual growth rate in both cardholders and per head spending.4) More than 57% of the cardholder avails for travel and entertainment.

iii. Suggestion1) For healthy existence in competitive card market bank should concentrate

oncustomer satisfaction by way of extra service.2) The market has a very wide scope and hence banks should innovate and

developspecialized products to suit customer requirement.3) Public banks should tie up with technologically strong banks, which will go a

longway in providing economies of scale.4) Banks should become more vigilant towards frauds by adopting fraud

controllingsystem, educating their employees on techniques of preventing frauds and creatingcustomer awareness.

5) Merchant establishments should be encouraged to accept credit cards on routineSystem.

iv. ConclusionFrom the above analysis we can conclude that the use of plastic money is increasing day by day. People think that plastic money is more safe and convenient to use. The study also highlights the role of these cards as electronic payment tool to be used by customers and discusses clearing and settlement process of these cards. Some future plans made by various banks and institutions are also summarized in a way that it depicts the picture of its future growth and prospects in India.

v. Bibliography www.docstoc.com www.freepatentsonline.com

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http://www.economicsandpublicpolicy.uci.edu

AnnexureQuestionnaire on “Relevance of Plastic

money over Paper money In the Economy”

SR. NO. ______

Dear Sir/Madam,

We are the Students of N R institute of business management and we are conducting a survey for doing research regarding the preference of people over using plastic money or paper money in their day to day transaction. Your valuable opinion and co-operation will help us a lot in our research.

N.B. We assure you to that the data given by you will be only used for academic and research purpose and will be kept confidential.

Basic Information

1) Name:- ________________________________________________________________2) Contact number:- _______________________________________________________3) Gender :- Male Female4) Age :- 18-25 yrs 25-35 yrs

35-50 yrs above 50 yrs

5) Profession:- Student Business Service

Government Employee others, specify _______________

6) Annual income: - 0- 180,000 Rs. 180,000 – 300,000 Rs.

300,000 – 500,000 Rs. 3 above 500,000 Rs.

7) Marital status:- Single Married

8) No of family members:- up to 4 4 – 6 above 6

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Please Tick ( √ ) in the box given below the questions to answer :-

Q1.Do you have idea about plastic money? Which?

Credit card Debit card

ATM card others

Q2.Do you have plastic money?

Credit card Debit card

ATM Card Specific Outlet card

Q3. According to you, which is the most convenient way to pay?

Cash card

both NO comments

Q4. How do you prefer to pay your utilities Bills?

Cash Card ECS

Cheque DD Others

Q5. How do you make payment for purchases of household consumables?

Cash Card

Cheque ECS

Q6. How do you make payment for purchases of luxury and Durable goods?

Cash Card

Cheque ECS

Q7.While travelling, According to you which is the preferred way of payment?

Cash Card Traveller’s cheques

Cheque DD

Q8. Do you find use of credit card/Plastic money to be safest modes of transaction?

Yes No No comments

Q9. Why you do not prefer plastic money? [Answer this question only if answered “No” in Question 8]

Instable income lack of knowledge

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Malpractices by outlet owners Mal practices by Bankers

Lack of Trust Misuse by other

Q10. Why you do not prefer Paper money [answer this question only if answered “Yes” in Question. 8]

Fear of Theft Increasing Duplicity

Wear And Tear of paper money

Q11. Do you find Credit Card to be expensive as many other charges are charged on it?

Yes No

Q12.Do you find it cheaper and Beneficial as if gives you one Month Credit for Payment?

Yes No

Q13.Which you consider more reliable and secured?

Paper money Plastic Money

Both No comments

Q14.Which can be carried and kept easy and has more life?

Paper money Plastic money

Q15. Due to Duplicity of Paper money are you shifting to Plastic Money?

Yes No

Q16. Which Type of security measurement you expect for stepping misuse of Plastic Money?

Password Photo card

PIN Biological Imprints

Q17. Do you think that there should be any limit on daily/monthly transaction value?

Yes No No comments

Q18. Do you prefer any add-on-cards on your credit/debit card?

Yes No

If Yes then in who’s Name:-

Spouse Major Son or Daughter Parents

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Q19. Do you Think that plastic money will penetrate in society more in future?

Agree Disagree

Q20. Do you think that more credit card/Debit card transaction in country over cash transaction will help to crab black money circulation in economy?

Yes No No comments

Q21. If you are financial minister of the country, what would you prefer on higher proportion?

Paper money Plastic money

Both in equal ratio

Q22. Where do you see the Future of Cash & Credit card/Debit card?

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Thank you for your precious time and Positive response

Date:-____________

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