A

WINTER PROJECT REPORT

ON

PERCEPTION OF PEOPLE TOWARDS PLASTIC

MONEY

Submitted By:
PALSANA BHAKTI
13BBA070

Guided By:
Dr. GOVIND DHINAIYA

BBA PROGRAMME
(YEAR 2015-16)

SHREE J D GABANI COMMERCE COLLEGE &

SHREE SWAMI ATMANAND SARSWATI COLLEGE
OF MANAGEMENT, SURAT
 COLLEGE CERTIFICATE

This is to certify that the winter Project report has been prepared by
PALSANA BHAKTI M. (13BBA070), under my guidance and supervision.
This project embodied the result of her work and standard expected from a
candidate for the degree of BBA.

This report submitted towards the partial fulfillment of the requirement for
the degree of BBA has been found satisfactory.

FACULTY GUIDE I/C PRINCIPAL

Dr. Govind Dhinaiya Dr. P.R.Patel

Date:
Place: Surat.

I
 DECLARATION

I hereby declare that summer project report submitted to SHREE J. D.

GABANI COMMERCE & SHREE SWAMI ATMANAND SARSWATI
COLLEGE OF MANAGEMENT Surat, in the fulfillment of BBA (Bachelor
of Business Administration) degree. The project is result of my work carried
out during January- February 2016.

This project report is entirely an outcome of my own efforts and has not
been previously submitted to any other university or institute for any other
examination and for any other purpose by any other person.

DATE: PALSANA BHAKTI

PLACE: SURAT 13BBA070

II
 ACKNOWLEDGEMENT

I would like to thanks to Veer Narmad South Gujarat University to include

this winter report in the curricular of B.B.A. program.

I feel great pleasure to express my feeling of gratitude to our principle

Dr.P.R.Patel and also thankful to my academic guide Dr. Govind Dhinaiya
for giving the valuable guidance and suggestion for successful completion
of this dissertation.

I am also indebted to all the respondents without whose cooperation the

project would not have been possible.

My special thanks to one and every faculty member of S.A.S College and
my relative and friends who had helped me in the successful completed of
this project.

III
 EXECUTIVE SUMMERY

Plastic money or polymer money, made out of plastic, is a new and easier
way of paying for goods and services. Plastic money was introduced in the
1950s and is now an essential form of ready money which reduces the risk
of handling a huge amount of cash. It includes debit cards, ATMs, smart
cards, etc. The plastic note are same as paper money but the only
differences is that they are made of plastic and more secured but in
traveling and shopping people used to carry huge cash which was very
unsecured and also increasing crime rate.

The winter research report is preparing with the help of primary data. This
report includes following chapters.

The first chapter is introduction. This chapter involves introduction of

plastic money.

The second chapter is theoretical framework. This chapter involves history

of plastic money, types of plastic money, list of Indian banks providing
plastic money facility, credit card definition, types of credit card, major
banks issuing credit card in India, advantages and disadvantages of credit
card, debit card definition, types of debit card, major bank issuing debit
card in India, advantages and disadvantages of debit card, plastic fraud.

The third chapter is literature review for deals with the problem that has
been already studied in the past by different research scholars and their
conclusions & recommendations have been mentioned here.

The fourth chapter is research methodology it provide information about

need for the research, problem statement, research objective, research
design, variables under study, tools and technique for data collection,
sampling design, tools for data analysis and limitation of study.

IV
The fifth chapter is data analysis which shows the analysis for the
collection data and its interpretation through tables and chats. Analysis
also helps for the conclusion and findings.

The sixth chapter is finding from data analysis; it shows the specific result
for the analysis made.

The seven chapter is conclusion of the whole report, it states the final
decision determination or result from which the answer problem for whole
research has been made in obtained.

V
 TABLE OF CONTENTS

SR NO. TOPIC PAGE

NO.

01 INTRODUCTION 1

02 THEORITICAL FRAMEWORK 3

03 LITERATURE REVIEW 23

04 RESERCH METHODOLOGY 28

05 DATA ANALYSIS 31

06 FINDING 48

07 CONCLUSION 50

08 BIBLIOGRAPHY

09 ANNEXURE

VI
INRODUCTION
The plastic money began to be widely used only after 1970, when the
specific standards for magnetic strip where set. In the late 1990s, plastic
card become very common and by 2001, plastic money had become an
essential form of “ready money” the global card market is dominated by
two US-based players, Visa and Master card. Visa introduced its first credit
card, Bank America in 1958, which went on to become a great success
acquiring universal merchant acceptance. Visa’s card base increased
significantly through the decades. Master card International was
established in the 1970s. The first Master card was issued in 1988, in
Soviet Union.

It’s 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 busy
with different types of cards ranging from gold, silver, global, co-branded
credit cards, smart to secure, the list is endless.

Plastic money is a term that is used predominantly in reference to the hard

plastic cards we use every day in place of actual bank notes. They can
come in many different forms such as cash cards, credit cards, debit cards,
pre-paid cash cards and store cards.

The Plastic Money is generally a card with a magnetic strip offered by

banks and financial organization for withdrawals, payments and
purchases. People carry them in their wallets and purses and can use it
where they want. Such cards generally contain name of card holder, card
number normally of 16 digits, and validity end date, issuer's name,
signature, magnetic strip and a PIN.

Plastic Money is a term used for all types of bank's cards such as Credit
cards, Debit cards and all types of Smart cards for E-Payments. These are
of alternative to cash or standard 'money'. Plastic Money refers to credit
cards or debit cards that can be used to make purchases anywhere and
anytime. In other words Plastic Money is a term refers to hard plastic cards
1
which can be used as actual bank notes. These are of different types such
as credit cards, debit cards, cash cards, pre-paid cash cards, ATM cards
and store cards. Electronic facilities and equipment’s are provided by
banks for using such cards.

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.

MEANING:

Plastic money is also known as polymer money. Plastic money refers that,
we use plastic money whenever you want and pay later (with interest, of
course). It makes it too easy for people to buy things they normally could
not afford, which makes it easier to get into debt. Plastic money is the
alternatives to the cash or the standard money.

DEFINATION:

According to Basel (1998) plastic/electronic money refers to “stored value”

or prepaid payment mechanisms for executing payments via point of sale
terminals, direct transfers between two devices, or over open computer
networks such as the internet. Stored value products include “hardware”
or “Card-based” mechanisms (also called “electronic purses”), and
“Software” or “network-based” mechanisms (also called “digital cash”).
Stored value cards can be “single – purpose” or “multi-purpose”. Single-
purpose card (e.g. telephone cards) are used to purchase one type of good
or services, or products from one vendor, multi-purpose cards can be used
for a variety of purchases from several vendors.

2
THEORITICAL
FRAMEWORK
HISTORY OF PLASTIC MONEY:-

Paper money was first used in china around the seventh century AD, only
to be out lowed in 1455. The use of folding currency re-emerged in England
in 1694. The biggest problem which was occurring with the paper note is
the wear; the paper note was very small life due to shifting of ownership
by time to time and their usage.

Firstly Australia was the first who develop the plastic note which have
longer life but after wore they are recycled for further utilizing. The plastic
notes also secure the government for copying because paper note easily
copied but plastic note cannot be copied.

The plastic money note are some as paper but the only difference is that
are made of plastic and more secured but in travelling and shopping people
used to carry huge cash which was very unsecured and also increasing
crime rate. Then the cards are introduced in the world to resolve the issue
of carrying huge cash then card is known as plastic money.

The usage of plastic money has increased in the mode of payment of huge
amount and time by time there are lots of different types of plastic money
has introduced which enhanced the features of plastic money like we can
use

It to anywhere in the world. Now the world is becoming globalize so every

card is accepted everywhere with the power of VISA which interconnect the
different countries.
TYPE OF PLASTIC MONEY:-

1. Credit card:

Many people enjoy the convenience and

protections it offers, such as the ability
to defer payments and keep records of
purchases. A credit card generally
works by giving its holder an immediate
authority to purchase services and
goods such as travel and hotel reservations as well as shopping for
merchandise in and outside your own country.
All the credit card comes with a credit limit, a predetermined amount of
money which its lender is offering as credit to a credit card holder to spend
wherever he wants to. Before issuing a credit card to an individual, the
bank or the financial institution has a look at his/her credit rating
alongside verifying his/her credit history.

2. Debit cards:
Debit cards are electronic current account
cards that offer a safe, convenient alternative
to cash and cheque when you wish to make
payments. Unlike a credit card, these cards
are linked to your current account and you
can only spend money that you have;
regardless of the type of transaction you make using your card, the funds
are always deducted from your current account balance. Debit cards can
be used to purchase goods and services in shops, restaurants, garages and
supermarkets, as well as online. Debit cards can also be used at
Automated Teller Machines (ATMs) to withdraw cash from your account
for most transactions that you make, you will not be charged for using
your debit card. However, if you use your debit card abroad, or withdraw
cash from certain cash machines, there may be a small percentage fee.
 3. Charge cards:
When use a charge card, it could be
used as the payment implement of a
trade transaction of product or the
service. Then the cardholder has to set
off the entire outstanding amount fully
at the end of that month or in the
following month with or without the additional charges and fees.
Normally, the charge card don’t have the provisions of the credit limit and
card holder has to do full payment of all the transactions before the next
statement and without used percentage the interest, but card holder not
paid full outstanding amount then he has to pay an additional charge
called delay fine for his next statement. A charge card carries all the
features of credit cards. However, after using a charge card you will have
to pay off the entire amount billed, by the due date.

4. Amex card:
Amex stands for American Express and is
one of the well-known charge cards. This
card has its own merchant establishment
tie-ups and does not depend other Network
of MasterCard or Visa. This card is typically
meant for high-income group categories
and companies and may not be acceptable at many outlets. There are a
wide variety of special privileges offered to Amex cardholders.

5. Smart card:
A smart card contains an electronic chip
which is used to store cash. This is most
useful when you have to pay for small
purchases, for example bus fares and
coffee. No identification, signature or
payment authorization is required for
using this card. The exact amount of purchase is deducted from the smart
card during payment and is collected by smart card reading machines. No
change is given. Currently this product is available only in very developed
countries like the United States and is being used only sporadically in
India.

6. Global cards:
Global cards allow you the flexibility and
convenience of using a credit card rather
than cash or travelers cheque while
traveling abroad for either business or
personal reasons.

establishment tie-ups and does not depend on the network of MasterCard

or Visa. However, since this card is typically meant for high-income group
categories, it may not be acceptable at many outlets. It would be a good
idea to check whether a member establishment does accept the card or not
in advance.

8. Co- branded card:

Co-branded cards are credit cards
issued by card companies that have tied
up with a popular brand for the purpose
of offering certain exclusive benefits to
the consumer. For example, the Citi-
Times card gives you all the benefits of a
Citibank credit card along with a special discount on Times Music
cassettes, free entry to Times Music events, etc.

9. Master card:

MasterCard and Visa are global non-

profit organizations dedicated to promote
the growth of the card business across
the world. They have built a vast network
of merchant establishments so that
customer’s world-wide may use their
respective credit cards to make various purchases.

10. Photo card:

Global cards allow you the flexibility

and convenience of using a credit card
rather than cash or travelers checks
while travelling abroad for either
business or personal reasons.

List of Indian banks providing plastic money facility:

 Allahabad bank
 Canara bank
 Dena bank
 India overseas bank
 State bank of India
 State bank of Patiala
 State bank of Hyderabad
 Axis bank
 HDFC bank
  ICICI bank
 Punjab national bank
 Industrial development bank of India
 Kotak Mahindra bank
 Union bank
 Yes bank

Most popular cards in India credit card and debit card:-

CREDIT CARD:-

Introduction:-

A is a small plastic card issued to users as a system of payment. It allows

credit credit’s holder to buy goods and services based on the holder's
promise to pay for these goods and services. The issuer of the card grants
a line of credit to the consumer or the user) from which the user can borrow
money for payment to a merchant or as a cash advance to the user.

Definition:-

The credit card can be defined as “A small plastic card that allows its holder
to buy goods and services on credit and to pay at fixed intervals through
the card issuing agency

Meaning:-

A credit card is a card or mechanism which enables card holder to

purchase goods, travels and dine in a hotel without making immediate
payments. The holders can use the cards to get credit from banks up to 45
days.
The credit card relieves the consumers from the botheration of carrying
cash and ensures safety. It is a convenience of extended credit without
formality. Thus credit card is a passport to, “safety, convenience, prestige
and credit.

Types of Credit Cards offered by Indian Banks:

 Silver Cards:

Silver credit cards rank lowest among the metal named cards, and,
because of lower prestige when compared to gold and platinum cards, are
commonly known as basic and standard credit cards. Silver credit cards
come with advantages such as lower annual membership fees if there is
any, and a lower threshold salary which banks use to evaluate your
application in case you should apply.

Silver credit cards will provide you with almost the same credit limit as
other cards provided you have a good credit history. You can also avail of
0% interest balance transfer schemes which are made available for a period
of 6-9 months for silver card holders.

There are also some disadvantages to using silver credit cards. One would
be the lower cash advance limits, less rewards and promotional packages,
and less travel perks compared to gold and platinum cards. HDFC Bank,
ICICI offer silver credit cards through their HDFC Bank Silver cards and
ICICI Sterling Silver credit card

 Gold and Platinum Cards:

Gold and platinum credit cards are a status symbol for any credit card
holder, bringing prestige since getting gold and platinum cards usually
require that you have good credit rating and a higher income levels. Gold
and platinum cards offer higher limit for cash advance withdrawals and
sometimes can provide higher credit limits as compared to standard or
silver cards.

If you have a gold or platinum card, you also get better perks and privileges
such as travel insurance, extended warranties for appliance purchases
and special deals on specific products, and purchase protection insurance.

You can also engage in some loyalty schemes that are offered for gold and
platinum credit card holders which can sometimes involve cash back
promos and reward points systems.

Some popular gold and platinum cards available are the American Express
Gold card, and the ICICI Solid Gold Credit Card.

It is not possible to cover them the exact offerings of these cards but I will
highly advice you to check all these websites of the banks to get all the info
about the credit cards they are offering. Also try to talk to your friends who
are having credit cards to get more info.

Major 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
 ABN AMRO credit card
 Standard Chartered credit card
 HSBC credit card
 Citibank Credit Card
ICICI Bank

ICICI Bank Credit Cards give you the facility of cash, convenience and a
range of benefits, anywhere in the world. These benefits range from life
time free cards, Insurance benefits, global emergency assistance service,
discounts, utility payments, travel discounts and much more.

Types of cards

 Premium Cards
 Classic Cards
 Value for Money Cards
 Co-Branded Cards
 Affinity Cards
 EMI Card

HDFC Bank

HDFC bank credit card provide a facility of easy availability of cash and
convenience to the cardholder.

Types of credit cards of HDFC bank

 Silver Credit Card

 Value plus Credit Card
 Health plus Credit Card
 Gold Credit Card
 Titanium Credit Card
 Platinum Plus Credit Card
 Visa Signature Credit card
The following are some of the varieties of credit cards in India

 ANZ - Gold
 ANZ - Silver
 Bank Of India – India card
 BOl - Taj Premium
 BOl - Gold
 BOB - Exclusive
 BOB - Premium
 Canara Bank – Can card
 Citibank - Gold
 Citibank - Silver
 Citibank WWF Card
 Citibank Visa Card for Women
 Citibank Cry Card
 Citibank Silver International Credit Card
 Citibank Women's International Credit Card
 Citibank Gold International Credit Card
 Citibank Electronic Credit Card
 Citibank Maruti International Credit Card
 Citibank Times Card
 Citibank Indian Oil International Credit Card
 Citibank Citi Diners Club Card
 HSBC - Gold
 HSBC - Classic
 ICICI Sterling Silver Credit Card
 ICICI Solid Gold Credit Card
 ICICI True Blue Credit Card
 SBI Card
 Stanchart - Gold
 Stanchart - Executive
 Stanchart - Classic
 Thomas Cook Standard Chartered Global Credit Card
Advantages of credit card:

 The risk factor of carrying and storing cash is avoided. It is

convenient for him to carry credit card and he has trouble free travel
and may purchase his without carrying cash or cheque.
 Months purchases can be settled with a single remittance, thus,
tending to reduce bank and handling charges.
 The card holder has the period of free credit usually between 30-50
days of purchase.
 Cash can usually be obtained with the card, either on card account
or by using it as identification when encasings a cheque at the bank.
 The credit card saves trouble and paper work to traveling business
man.
 The card holder has the option of taking extended credit up to a pre-
arranged limit without reference to anyone, in additional to an initial
credit and interest free period. Future, revolving credit becomes
automatically available as the outstanding balance is reduced.
 It provides a proof of spending through banking channels to
strengthen his position in case of disputes with sellers.

Disadvantages of credit card:

 Some credit card transactions take longer time than cash

transactions because of various formalities.
 The customer tends to overspend out of immerse happiness.
 Discounts and rebates can rarely be obtained.
 The cardholder is responsible for charges due to loss or theft of the
card and the bank may not be party for loss due to fraud or collusion
of staff, etc.
 Customers may be denied cash discount for payment through card.
 It might lead to spending habits and cardholders may end up in big
debts
  Avoid the entire cost and security problem involved in handling cash.
 Losses to bad debts and reduced an additional liquidity.
 It also allows him to delegate spending power to add on members

DEBIT CARD:-

A debit card (also known as a bank card or check card) is a plastic card
that provides the cardholder electronic access to his or her bank account/s
at a financial institution. Some cards have a stored value with which a
payment is made, while most relay a message to the cardholder's bank to
withdraw funds from a designated account in favor of the payee's
designated bank account. The card can be used as an alternative payment
method to cash when making purchases. In some cases, the cards are
designed exclusively for use on the Internet, and so there is no physical
card.

Debit cards may also allow for instant withdrawal of cash, acting as the
ATM card for withdrawing cash and as a cheque guarantee card.
Merchants may also offer cash back facilities to customers, where a
customer can withdraw cash along with their purchase.

Types of Debit Cards in India

1. Visa Debit Cards

These debit cards are issued with the bank’s tie-up with VISA payment
services providing the Verified by Visa (VBV) platform for online
transactions.

2. Visa Electron Debit Cards

Visa Electron debit cards are very similar to Visa debit cards but these
cards do not provide the overdraft feature.
3. MasterCard Debit Cards
A MasterCard Cirrus Card or a MasterCard Maestro Card gives
customers access to their funds worldwide and they can perform online
transactions using their bank accounts on the MasterCard Secure Code
platform.

4. Contactless Debit Cards

Customers can make payments with just a tap or wave of their
contactless debit cards near POS terminals, with the cards working on
Near Field Technology (NFC) thereby making electronic payments safer.

5. Rupay Debit Cards

Introduced as a domestic card scheme by the NPCI, Rupay debit cards
facilitate online purchases and transactions on the Discover network and
ATM transactions under the National Financial Switch network.

6. Maestro Debit Card

Founded in 1992, Maestro from MasterCard is a premier, international
debit card service that has been popularly adopted at over 13 million
locations spread across 100+ countries around the world. Maestro, as
easily identified by the signature logo on all partner cards, helps the
customer gain immediate access to his/her money through a robust,
international network of compatible ATMs, POS outlets and online
resources

Top bank issuing debit card in India

 State bank of India

 HDFC bank
 ICICI bank
 Axis bank
 Punjab national bank
  Canara bank
 Bank of India
 Bank of Baroda
 Union bank of India
 Syndicate bank
 HSBC bank
 Indusland bank
 Citi bank
 Yes bank

ICICI

Combining the wide acceptability of a credit card and the thoughtful

prudence of an ATM card, the ICICI Bank Debit Card is the most
convenient accessory. No more fear of overspending. No more searching for
the nearest ATM. Only more comfort and convenience in the debit cards
provided by ICICI.

Various Products

 The ICICI Bank Private Banking Debit Card

 The ICICI Bank Gold Debit Card
 The ICICI Bank HPCL Debit Card
 The ICICI Bank Ncash Silver Card
 The ICICI Bank Ncash Debit Card

HDFC

HDFC BANK Debit Cards give you complete and instant access to the
money in Accounts without the risk or hassle of carrying cash.
Types of debit cards

 Easy Shop International Debit Card

 Easy Shop International Gold Debit Card
 Easy Shop International Business Debit Card
 Easy Shop Woman's Advantage Debit Card
 Kisan card

Advantages of Debit Card:

 Debit cards are a convenient alternative to cash. They are easy to

carry and can be handled easily. Since you do not have carry cash
or cheque book if you have a debit card, it is a safe option when
travelling.
 Debit cards can be used to withdraw cash from an ATM and also for
merchant transactions at Point of Sale (POS) terminals. A debit card
ensures instant transfer of funds and receipts of services.
 With banks offering exciting features like bonus points, cash back
offers, free insurance coverage and an array of redeeming options for
accumulated points, debit cards will make your whole purchase
experience more rewarding.
 Debit cards encourages a habit of responsible spending since the
cardholder can only utilize their own money within account limits.
It also helps in better budgeting and money management since the
transactions are recorded.
 A debit card offers greater security and thus decreases the chances
of fraud, theft and misuse.
 You can easily keep tracks of your spends with features like email
and SMS alerts that contain details of transactions done using the
debit card. Many banks also allow you to customize the add-on
benefits to gain the maximum from your debit card.
Disadvantages of Debit card:

 Some banks are now charging over limit fees or non-sufficient funds
fees based upon pre-authorizations, and even attempted but refused
transactions by the merchant (some of which may not even be known
by the client).
 Many merchants mistakenly believe that amounts owed can be
"taken" from a customer's account after a debit card (or number) has
been presented, without agreement as to date, payee name, and
dollar and cent amount, thus causing penalty fees for overdrafts,
over-the-limit, amounts not available causing further rejections or
overdrafts, and rejected transactions by some banks.
 Debit cards offer lower levels of security protection than credit cards.
Theft of the users PIN using skimming devices can be accomplished
much easier with a PIN input than with a signature-based credit
transaction.
 A thief who obtains or clones a debit card along with its PIN may be
able to clean out the consumer's bank account, and the consumer
will have no recourse.
 When a debit purchase is made, the consumer has spent his/her
own money, and the bank has little if any motivation to collect the
funds.

ADVANTAGES OF PLASTIC MONEY:

Plastic Money is a must need of our busy life. Today it is very easy to carry
money without having a lot of cash or gold. Keep Credit or Debit cards and
forget the cash money. This is a new idea of present lifestyle which has
made money transition so easy that anybody can carry it with him or her
in a pocket. Today plastic money is the best alternative of the cash.
It gives you also better option as extra purchasing capacity, protection of
money and much more. Likewise advantage plastic money has
disadvantages also. Now we would study of following advantages as well as
disadvantages,

1) 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.

2) 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.

3) 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.

4) 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.
5) 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.

6) 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 us now we can see the importance of credit cards and debit
cards as plastic money. Plastic money has made life easier, simpler and
fast then before.

DISADVANTAGES OF PLASTIC MONEY

We can’t ignore the necessity of plastic money in our life. This is the one
among most important needs of our life. Plastic money or credit/debit card
was a new idea in its starting but it was welcomed by the people because
of its usability and benefits. Here we will read about disadvantages of
plastic money.

1. Over Budget:

Plastic money gives us an easy and extended purchasing capacity which

results in an extra and unwanted buying. These cards give us discounts
and bonus also on particular stores or items, which encourage us to get
them and we use our hard earned money for a non-required thing, which
affects our budget and we can’t handle our monthly budget system.
2. Increased Debt and High Interest Rates:

Credit Card provider financial institutions and companies charge high

interest rates (may be 10% to 25%) on extra money if you fail to pay off up
to the fix date of the month. This interest is their earning, for which they
give you extra buying limits then your money. This is not a good idea that
you owe loan on high interest rates and spend it in unnecessary things or
purchasing. This is complete money wastages.

3. Fraud:

Credit cards can be stolen. A thief may be use them directly or to get their
information (which is required in money exchange). In today’s technical
intelligence it is also possible to get a clone of any credit card or debit card,
which works like original and they can be give you a heavy financial loss.
So be aware from credit cards fraud as they are like stolen your money
from your pocket without your information.

PLASTIC FRAUD:-

State-of-the-art thieves are concentrating on plastic cards. In the past, this

type of fraud was not very common. Today, it is a big business for
criminals. Plastic cards bring new convenience to your shopping and
banking, but they can turn into nightmares in the wrong hands. This
pamphlet describes credit and debit cards and some common schemes
involving card fraud with tips to help you avoid them the following are the
types of frauds,

1. Stolen Cards at the Office

2. Extra Copies of Charge Slips
3. Discarded Charge Slips
4. Unsigned Credit Cards
5. Loss of Multiple Cards
6. Strange Requests for Your PIN Numbers
7. Legitimate Cards
8. Altered Cards
9. Counterfeit Cards

Plastic card protection:

Identity, allowing them to illegally purchase items or obtain credit. By

following these simple guidelines, your potential for loss due to identity
theft can be greatly reduced.

Tips for protecting yourself against identity theft

1. Check your credit report on a regular basis to ensure the information

is correct.

2. Immediately tear up (using a shredder is even better!) unsolicited

credit card offers.

3. Never give personal information over the phone unless you initiated
the phone call.

4. Never give a credit card number over the phone unless you have
initiated the phone call.

5. Always be familiar with financial accounts that you currently

maintain. Verify statements and other information sent by your
financial institution for accuracy.
LITERATURE REVIEW
George (1995), title “The card majors lead the way” shows that VISA
and MasterCard play a major role in any international payment system.
Both VISA and Master Card act also as franchisers, lending their names
to member banks’ card and acting as guarantor of payment to merchants
willing to accept the cards. For this and for handling transactions, VISA
and Master card charge a fee which varies from country to country, but is
approximately 3 cents (90 paisa) per transaction. They are card clearing
agencies. VISA and Master card each have nearly 22000 banks all over the
world as their members and handle several million transactions each day.
This gives them a transaction handling capability unmatched by any
individual bank. They are not credit card companies but function on the
line to provide a global network that allows authorization, clearing and
settlement of card transactions, both of credit and debit cards.

Radhakrishan (1996) study on “DEBIT CARDS” shows that the debit

cards also have found wide acceptability than credit cards because of
assurance of payments to retailers, switching of cardholders to debit card
because of using interest free period to avoid high interest cost, annual
charges as compared to debit cards etc. The study shows that the growth
of service industry in the country, electronic fund transfer, point of services
offer a large potential for banks to cutting down cost associated with the
paper based clearing and payment services. The introduction of debit cards
can take place subsequently and the objective should be to attain a critical
mass in issuing number of such cards so that the operation becomes cost
effective.

Carow and Kenneth (1999),title “Debit, Credit, or Cash: Survey

evidence on Gasoline Purchases.” analyzed the consumer’s payment
option to use debit, general purpose credit cards, gasoline credit cards, or
cash. Based on the results from a nested multinomial logit model, authors
found consumers are more likely to use cash when they have less
education, lower incomes, are middle-aged and own fewer credit cards.
Debit and credit card users are younger, more educated and hold more
credit cards. Respondents who use their debit card are less likely to use
their gasoline credit card. The result suggests that greater debit card usage
will place the greatest competitive pressure on the gasoline credit card
program.

Bhargava (2004) title “Debit cards: A new generation plastic money”

analyses that debit cards are fast catching up with the customers. A
combination of factors like ease of availability, debit-averse profile of
customer and zero interest rates are propelling the usage of Debit Cards.
The study emphasizes to increase the usage of these cards, bank will need
to improve infrastructure and continues to focus an increasing
installations of point of sale [POS] in smaller cities and on the locations
which are frequently used by cardholders, and to develop new marketing
programmers that educate customers on the benefits of replacing cash
with plastic.

Johnson (2005),title “Recent development in credit card market and

the financial obligation ratio” exhibits that over the past fifteen years,
U.S. household in the aggregates have devoted an increasing share of their
after tax income to the payment of financial obligations. Much of the
increase is attributable to a rise in the level of credit card debt, which has
raised the share of households’ aggregate after tax income that is devoted
to credit card payments. This article argues that three importan t
developments in the credit card market over the period account for most
of the rise in credit card payments relative to income and played a strong
role in the rise of the total financial obligation ratio (FOR). First,
improvements in credit scoring technology and the advent of risk based
pricing of credit card debt have increased the share of house-holds
particularly lower income households with a credit cards. Second, in the
1990’s , credit card interest rate begin to vary with changes in broader
market interest rates, which in turn led to an especially pronounced
decline in credit card interest rates turned sharply lower.
Park and Burns (2005), title “Fashion orientation credit card use, and
compulsive buying.” The study was to identify the direct impact of
fashion-related factors on compulsive buying and the indirect impact of
fashion-related factors on compulsive buying through credit card use. It
was found credit card usage to be the most influential factor followed by
expenditure on fashion goods. Research shows that fashion orientated
consumers are heavy credit card users. Consumers who tend to have
fashion leadership and know the importance of being well dressed might
use their credit card more while those who have anti–fashion attitude are
least likely to use their credit cards. The authors observe that the credit
card is the most significant factor in encouraging compulsive buying and
suggest that since other antecedents of such behavior are hard to pin
down, regulatory action should focus on the control of credit.

Sant (2005), title “Credit cards emerging Trends and Prospects” shows
benefits, Growth/potential growth, usage pattern, technological changes,
delinquency rates, and fraud settlement, by the credit card companies.
Survey shows that spend per card in India are very low at around Rs.
20,000 per year against international average of around $900 (i.e. about
Rs. 40,000) per year per card. Demands have increased for higher quality
and level of services. Major card issuers in India, domestic and foreign, are
currently busy racking their brains in trying to protect their organizations
from frauds. To overcome this problem a new technology i.e. “Smart-Card”
that allows for greater security against fraud. Authors feels that with the
establishment of credit information bureau of India Ltd. (C/B/L) customer
had motivation to maintain good credit history and helps in lowering of
delinquency rates.

Al-Alawi and Al-Amer (2006), title “Young Generation Attitudes and

Awareness Towards the implementation of Smart Card in Bahrain”: an
exploratory study. The study puts a light on latest advancement and
innovations in the world of information and communication technology by
the way of smart card. A smart card resembles in size and shape to a
normal credit card or bank ATM card, with a microprocessor chip
implanted into card. These cards are used not just as identity cards, but
hold a relatively huge amount of editable information including the
cardholder’s bank data, e-purse, finger print, health record, blood group,
traffic and license details and other vital information. Study present a
general overview history, features application and introduction of
smartcards in the kingdom of Bahrain. A total of 513 questionnaires were
distributed to the students of the University of Bahrain. The questions
asked included question to check the acceptance of the people to replace
their current cards with a smart card and their awareness of the new
National Smartcards in Bahrain.

Worthington (2007) title “The adoption and usage of credit cards by

urban-affluent consumers in China”. The purpose of this paper was to
present exploratory research into the holding and usage of credit cards by
a distinct segment of the Chinese population, who were “early adopters” of
this product. Primary data was collected for taking sample of the urban
affluent population in china to gauge preferences and attitudes towards
the use of credit cards. The sample was drawn from a narrower base than
the actual target population of urban-affluent market but an available and
valid respondent set, which offers insights into the “early adopters” of the
credit card product in china. It was found, that the respondent were
comfortable with the holding and use of credit cards particularly
recognized their value for spending on travel and entertainment.

Devlin (2007) title “An Analysis of main and subsidiary credit card
holding and spending.” This study seeks to examine why most multiple
credit cardholders have “main” card (i.e. a card used more often than
others) and “subsidiary” cards (i.e. cards used less often or only in an
emergency) and the spending pattern associated with main and subsidiary
cards. This study is a qualitative in nature, using a survey which contained
open-ended questions to acquire data. Response were subject to content
analysis to categories the reasons given for having a main and subsidiary
card. Results show that 85 per cent of the 141 respondents indicated that
they had a main card and the most frequently quoted reason for having
such a card was the superior discount and promotions which were offered
by the card issuer. Not surprisingly, main cards were used for the broadest
range of transactions while subsidiary cards were used for a more
restricted range of transactions, a majority saying that their subsidiary
cards were held for “stand by purpose”. The results suggests that
managers who market credit cards should aim to ensure that, in all times,
the discount they offer, the promotions they arrange and their loyalty
schemes are superior to those offered by competitors.
 REASERCH
METHODOLOGY
1. Need for research:

 By studding the perception of plastic money, we come to know its

relatively benefits and risk.
 The researcher shall conduct the study to know the different
purpose of plastic money user.
 In what basis they use plastic money like education, age etc…..

2 Problem statement:

“Perception of people towards plastic money.”

3 Research objective:

1) Primary objective:

 To know perception of people towards plastic money.

2) Secondary objective:

 To study the benefit of plastic money.

 To know the problem faced by the plastic money user.
 To study the satisfaction level of plastic money user.
 To study the opinion regarding plastic card.

4 Research design:

In this study descriptive research design has used because it provide

description of the factor and variables of the research problem and provide
accurate result.

5 Variables under study:

Under that study following variables are,

 Age
 Occupation
 Gender
 Education
 Usability
 Purpose
 Safety
 Price/cost
 Charges
 Convenience
 Facilities

6 Tools/techniques for data collection:

1) primary data:

In that studies, I have used primary data. The primary data is

collected first time. Primary data have been be collected from
direct source of information like customer with the help of
questionnaire survey.

2) secondary data:

Secondary data are also use in that studies. Secondary data are
those which have already been collected by someone. The
secondary data source are,
 websites
 books
 library

7 Sampling design:
 1) Sampling unit:
The researcher has taken as sample unit to those who are using
the plastic money.

2) Sample size:

Sample size refers to the number of respondents to be selected

from the universe to constitute a sample. In that studies sample
size 200 plastic money user in varachha of Surat.

3) Sampling technique:

Non probability convenience sampling has been used because

respondents chosen for filling the questionnaire as per
convenient from varachha in Surat. The questionnaire is
structured.

8 Tools for data analysis:

That studies, data analysis researcher will use,

 Frequencies tables
 Cross tab
 Graphs
 Charts

9 Limitation of study:

 The study is not generalized and applicable because survey

conducted only in the limited area.
 The respondents may be not given accurate answer or willing to
answer.
DATA ANALYSIS
1. Are you aware of plastic money?

Particular No of respondents percentage

Yes 200 100%
No 0 0
total 200 100%

250
200
200
Respondents

150

100

50
0
0
yes No
Awre of plastic money

Interpretation:

From above chart it can be interpreted that, out of 200 respondents all the
respondents are aware of plastic money and they use plastic card and have
knowledge about plastic money.
2. Which plastic card you have?

Particular No of respondents percentage

Credit card 37 18.50%
Debit card 124 62%
Both 39 19.50%
total 200 100%

140
124
120

100
Respondents

80

60
37 39
40

20

0
Credit card Debit card Both
plastic card

Interpretation:

The above chart state that, out of 200 respondent, 37 respondents are use
credit card, 124 respondents are use debit card and 39 respondents are
both use credit card and debit card.
3. Your plastic card belong to which bank?

Particular No of respondents percentage

Private sector bank 137 59.60%
Public sector bank 93 40.40%
total 230 100%

160
137
140
120
Respondents

100 93

80
60
40
20
0
Private sector bank Public sector bank
Bank

Interpretation:

The chart show that, out of total 200 respondents, 29.60% respondents
have plastic card in private sector bank and 40.40% respondents have
plastic card in public sector bank.
4. Reason for which you have opted for plastic card?

Particular No of respondents percentage

Safety solution 54 22.40%
Convenient 30 12.40%
Handling solution 55 22.80%
fast transaction 17 7.10%
All of above 85 35.30%
total 241 100%

90 85
80
70
Respondents

60 54 55
50
40
30
30
20 17

10
0
Safety Convenient Handling fast All of above
solution solution transaction

Interpretation:

The chart gives clear view that, out of total 200 respondents, 22.4%
respondents opted for safety solution, 12.4% respondents opted for
convenient, 22.8% respondents opted for handling solution, 7.10%
respondents opted for fast transaction and 35.3% respondents opted for
safety solution, convenient, handling solution, and fast transaction.
5. How often do you use your plastic card?

Particular No of respondents percentage

Daily 7 3.50%
Weekly 65 32.50%
Monthly 128 64%
total 200 100%

140
128

120

100
Respondents

80
65
60

40

20
7

0
Daily Weekly Monthly

Interpretation:

The chart show that, out of 200 respondents, 7 respondents are using
plastic card at daily basis, 65 respondents are using plastic card at weekly
basis, 128 respondents are using plastic card at monthly basis.
6. Which purpose do you use your plastic card?

Particular No of respondents percentage

Cash withdrawn 158 51.10%
Traveling 46 14.90%
Shopping bill 84 27.20%
Dining bill 21 6.80%
total 309 100%

180
158
160
140
Respondents

120
100 84
80
60 46
40
21
20
0
Cash Traveling Shopping bill Dining bill
withdrawn

Interpretation:

After analysis of the data, 51.10% respondents are use cash withdrawn,
14.9% respondents are use traveling, 27.20% respondents are use
shopping bill and 6.8% respondents are use dinning bill.
7. Do you agree that plastic money reduces harassment and time?

Particular No of respondents percentage

Strongly agree 46 23%
Agree 108 54%
Sometimes 8 4%
Disagree 36 18%
Strongly disagree 2 1%
total 200 100%

120
108

100
Respondents

80

60
46
40 36

20
8
2
0
Srongly Agree Sometimes Disagree Strongly
agree disagree

Interpretation:

The above chart state that, 46 respondents are strongly agree, 108
respondents are agree, 8 respondents are sometimes and 36 respondents
are disagree and 2 respondents are strongly disagree.
8. Will you see the next generation as “No currency but plastic money”?

Particular No of respondents percentage

Strongly agree 45 22.5%
Agree 103 51.50%
Sometimes 4 2%
Disagree 33 16.50%
Strongly disagree 15 7.50%
total 200 100%

120
103
100
respondents

80

60
45
40 33

20 15
4
0
Srongly Agree Sometimes Disagree Strongly
agree disagree

Interpretation:

The chart gives clear view that, 45 respondents are strongly agree, 103
respondents are agree, 4 respondents are sometimes and 33 respondents
are disagree and 15 respondents are strongly disagree
9. Your opinion about your plastic card?

Particular No of respondents percentage

Good 86 43%
Average 60 30%
Satisfied 50 25%
Poor 4 2%
total 200 100%

100
90 86

80
70
Respondents

60
60
50
50
40
30
20
10 4
0
Good Average Satisfied Poor

Interpretation:

The chart show the overall opinion and it state that, 86respondents have
good opinion, 60 respondents have average opinion, 50respondents have
satisfied and 4 respondents have poor opinion about plastic money.
Personal information:

Age of respondent:

Particular No of respondents percentage

18 - 25 73 36.50%
26 - 40 102 51%
41 above 25 12.50%
total 200 100%

120
102
100
Respondents

73
80

60

40
25
20

0
18 - 25 26 - 40 41 above
Age

Interpretation:

In the chart, out of total 200 respondents, 73 respondents are age in 18 -

25, 102 respondents are age in 26 -40 and 25 respondents age in 41 above.
Gender of respondent:

Particular No of respondents percentage

Male 165 82.50%
Female 35 17.50%
total 200 100%

180 165
160
140
Respondents

120
100
80
60
35
40
20
0
Male Female
Gender

Interpretation:

The above chart show that, 200 respondents, 165 respondents are male
and 35 respondents are female.
Qualification of respondents:

Particular No of respondents percentage

under graduate 67 33.50%
graduate 84 42%
post graduate 49 24.50%
total 200 100%

90 84
80
70 67
Respondents

60
49
50
40
30
20
10
0
under graduate graduate post graduate
Qualification

Interpretation:

The chart gives clear view that, 67 respondents are under graduate,
84respondents are graduate and 49 respondents are post graduate.
Occupation of respondents:

Particular No of respondents percentage

business 59 29.50%
service 95 47.50%
retried 4 2%
student 29 14.50%
other 13 6.50%
total 200 100%

100 95
90
80
Respondents

70
59
60
50
40
29
30
20 13
10 4
0
business service retried student other
Occupation

Interpretation:

The chart state that, out of 200 respondents, 59 respondents are in

business, 95 respondents are in service, 4 respondents are retired, 29
respondents are students and 13 respondents are other.
Annual salary of respondents:

Particular No of respondents percentage

No income 35 17.50%
< 1 lac 28 14%
1 - 5 lac 101 50.50%
> 5 lac 36 18%
total 200 100%

120
101
100
Respondents

80

60

40 35 36
28

20

0
No income < 1 lac 1 - 5 lac > 5 lac
Annual salary

Interpretation:

The above chart show that, out of 200 respondents, 35 respondents are o
income, 28 respondents are annual salary is < 1 lac, 101respondents are
annual salary is 1- 5 lac and 36 respondents are annual salary is > 5 lac.
Cross tabulation:-

 Age and types of plastic card use:-

types of plastic card use Total

Credit card Debit card Both
Age 18-25 7 54 12 73
26-40 23 58 21 102
41 above 7 12 6 25
Total 37 124 39 200

Interpretation:

In above cross tab age and types of plastic card use that two variable is
include. The 58 respondent which age in between 26-40 year and they use
debit card. The 7 respondent which age in between 18-25 year and they
use credit card.

 Gender and opinion about plastic card:-

Opinion about plastic card Total

Good satisfied Average Poor
Gender Male 71 45 45 4 165
Female 15 15 5 0 35
Total 86 60 50 4 200

Interpretation:

In above cross tab gender and opinion about plastic card that two variable
is include. 71 male respondents are opinion about plastic card is good and
15 female respondents are opinion about plastic card is good and satisfied.
45 male respondents are opinion is satisfied and average.
  Occupation and types of plastic card use:-

types of plastic card use Total

Credit card Debit card Both
Occupation Business 29 22 8 59
Services 4 68 23 95
Retired 1 2 1 4
Student 3 22 4 29
Other 0 10 3 13
Total 37 124 39 200

Interpretation:

The above cross tab is occupation and types of plastic card use are two
variable are include. The 68 respondents are use debit card and their
occupation is service. 29 respondents are use credit card and their
occupation is business. 2 respondents are use debit card and their retired.

 Occupation and Reduce Harassment & time:-

Reduce Harassment & time Total

Strongly Agree Strongly Sometime Disagre
agree disagree e
Occupation Business 10 31 3 15 0 59
Services 29 53 2 10 1 95
Retired 0 1 0 2 0 4
Student 6 13 2 7 1 29
Other 1 9 1 2 0 13
Total 46 107 8 36 2 200

Interpretation:

The above cross tab is two variable occupation and reduce harassment &
time. 53 respondents are occupation is services and they agree that it
reduce harassment & time. 31 respondents are occupation is business and
they agree that it reduce harassment & time. 6 respondents are students
and they strongly agree that it reduce harassment & time.

 Annual salary and opinion about plastic card:-

Opinion about plastic card Total

Good satisfied Average Poor
Annual No income 12 12 11 0 35
salary Less than 1 Lac 14 8 4 2 28
1-5 Lac 48 28 24 1 101
More than 5 Lac 12 12 11 1 36
Total 86 60 50 4 200

Interpretation:

The above cross Tab annual salary and opinion are two variable is include.
The 48 respondents are annual salary is 1-5 lac and they opinion is good
about plastic card.12 respondents are annual salary is more than 5 lac
and they satisfied to the plastic card.
FINDING
The above data analysis of perception of people towards plastic money I
finding the following,

18.5% respondents are use credit card, 62% respondents are use debit
card and 19.5% respondents are both use credit card and debit card. So it
seems that more user of debit card.

59.6% respondents have plastic card in private sector bank and 40.4%
respondents have plastic card in public sector bank.

22.4% respondents opted for safety solution, 12.4% respondents opted for
convenient, 22.8% respondents opted for handling solution, 7.1%
respondents opted for fast transaction and 35.3% respondents opted for
safety solution, convenient, handling solution, and fast transaction. So it
seem that safety solution and handling solution that purpose respondents
use plastic money.

3.5% respondents are using plastic card at daily basis, 32.5% respondents
are using plastic card at weekly basis, 64% respondents are using plastic
card at monthly basis. So it seem that monthly use of plastic money is
more than daily and weekly.

51.1% respondents are use cash withdrawn, 14.9% respondents are use
traveling, 27.2% respondents are use shopping bill and 6.8% respondents
are use dinning bill. So it seem that most of consumer are use plastic
money for cash withdrawn.

23% respondents are strongly agree, 54% respondents are agree, 18%
respondents are sometimes and 1% respondents are disagree and 4%
respondents are strongly disagree. So it seem that most of respondents are
agree that plastic money reduce harassment and time.

48
22.5% respondents are strongly agree, 51.5% respondents are agree,
16.5% respondents are sometimes and 7.5% respondents are disagree and
2% respondents are strongly disagree. So it seem that most of respondents
are agree that next generation as “no currency but plastic money”.

43% respondents have good opinion, 25% respondents have average

opinion, 30% respondents have satisfied and 2% respondents have poor
opinion about plastic money. So it seem that most of respondents having
good opinion while using plastic money.

Plastic money user more male in compare to female.

The most of respondents are graduate. And the many user occupation is
service. In 200 respondents 59 respondents occupation is business and
they use plastic card, 95 respondents occupation is service and they use
plastic card, 4 respondents is retired and they use plastic card, 29
respondents is students and they use plastic card and 13 respondents is
other occupation and they use plastic card.

23 respondents who have credit card and they age is 26-40, 58

respondents who have debit card and they age is 26-40, 12 respondents
age is 18-25 who have both card.

49
CONCLUSION
This research is concluded that, in recent time developing technology and
other media then all the people are aware about plastic money. In that
plastic money user are more use debit card in compare to credit card. The
male plastic money user is more than the female plastic money user.

It also concluded that, the plastic money user main purpose is cash
withdrawn. The plastic money user is agree that plastic money reduce
harassment and time. The good opinion about plastic money user. The
safety solution and handling solution that reason they opted plastic
money. The young plastic money user is more.

50
BIBLIOGRAPHY
Websites:

WWW.wikipedia.com

http://www.scribd.com/doc/44446162/Plastic-Money

http://www.scribd.com/doc/175515152/Plastic-Money

http://www.scribd.com/doc/247083082/plastic-money-docx
ANNEXURE
I’mBhakti Palsana M. student of shree J.D.G. commerce and Shree Swami
Atmanand Saraswati College of management, study in T.Y B.B.A semester-
6. I’m doing research on “perception of people towards plastic money”.
The primary objective of study is to know the perception of people towards
plastic money. This study is only for academic purpose. I promise you that
the information provided by you will never be disclosed to anyone under
any circumstances.

1. Are you aware of plastic money?

Yes No

2. Which plastic card you have?

Credit card
Debit card
Both Both
Others (Please specify) …………………………………………
………………………………………….
………………………………………….

3. Your plastic cards belong to which bank?

Private sector bank

(Please specify the name)
…………………………………………………………..
…………………………………………………………..

Public sector bank

(Please specify the name)
…………………………………………………………
…………………………………………………………
4. Reason for which you have opted for plastic card?

Safety solution
Convenient
Handling solution
Fast transaction
All of above
Any other (please specify) ……………………………………………..

5. How often do you use your plastic card?

Daily
Weekly
Monthly

6. Which purpose do you use your plastic card?

Cash withdrawn
Traveling
Shopping bill
Dinning bill
Any other (please specify) ……………………………………………

7. Do you agree that plastic money reduces harassment and time?

Strongly agree
Agree
Sometimes
Disagree
Strongly disagree
8. Will you see the next generation as “No currency but plastic money?”

Strongly agree
Agree
Sometimes
Disagree
Strongly disagree

9. Your opinion about your plastic card?

Good
Average
Satisfied
Poor

Personal information:-

Name: …………………………………………………………………….
Age:
18 – 25
26 – 40
41 above
Gender:
Male female
Qualification:
Under graduate
Graduate
Post graduate
Occupation:
Business
Service
Retried
 Student

Other
Annual salary:
No income
< 1 lac
1 – 5 lac
> 5 lac

Contact no: …………………………………