Plastic money

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.
Debit card
A debit card is a type of facility provided by the banks to its customers to purchase goods and
services against his own saving bank account. So, whenever the transaction takes place, the
amount is deducted from the customer’s account. Here, the bank charges a nominal amount
every month for the use of the card. It can be used for purchasing goods, transfer of funds,
internet banking services, deposits, etc. Nowadays, ATM cum debit card is also available in
the market which allows you to avail all the facilities of the ATM card.
Credit card
A credit card is a type of facility which allows its customers to purchase goods and services on
credit, and the payment is made by a third party (financial institution) on his behalf
immediately. The customer has to pay the credit amount to the third party at a later date. In this
regard, every month, the financial institution sends a bill to the card user for the amount paid
on his behalf. Usually the user is allowed a credit period of 30 days within which he can pay
the amount, afterwards, interest is charged at a prescribed rate.

Key Differences between Credit Card and Debit Card

 For issuing the Credit card, the bank account is not the requirement of the bank, but in
the case of Debit card the customer must have a bank account.
 The major difference between Credit Card and Debit Card is that, in Debit card the
amount is withdrawn from the bank account linked to it, while in the Credit card the
amount is not withdrawn from the account.
 In Credit card the bank charges interest, whereas in the Debit card no interest is charged.
 The maximum limit of withdrawal in Credit card depends on the credit rating while the
maximum limit of withdrawal in Debit card depends on the cash balance in the account.
 The rate of overdraft facility is low on the Credit card, but the rate of overdraft facility
is high in case of a Debit card.

Kisan Credit card

Kisan Credit Card is a scheme launched by the Central Government of India which allows the
farmers to take loans at affordable interest rates. Also, this scheme will save the farmers from
the exploitation by the moneylenders in the unorganised sector. The interest rates are very low
and a longer repayment period is provided to the beneficiaries. Another feature of this scheme
is the crop insurance awarded to the farmers.
CORE BANKING SOLUTIONS (CBS)
• Core banking Solution is the centralized banking platform where total bank’s operations are
controlled and run from a centralized hub. CBS means application of computer technology to
various banking functions.
• CBS introduction has proved advantageous to banks in various ways, viz. (i) banking has
become single window in nearly all banks having CBS system, (ii) it is an answer to many MIS
problems of banks from audits and controls., (iii) whole operations of bank can be run from
centralized hub, and (iv) new products and services can be formed quickly, etc.
• CBS system works through centralized customer database; proper business plan and customer
information all over the country can be kept in one server.
• Through CBS system customers are equally benefitted in different ways. Customer is no more
bound at one place where account exists. He/she can bank with CBS to access his/ her account
from any station/city. Customer has simple and hassel free, accurate and quick banking in
place. Biggest advantage to customer is that he/she can do banking 24 hours by any e-banking
services available with the bank.

E-Banking or Internet banking

Online banking also known as internet banking, e-banking, or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a
range of financial transactions through the financial institution's website. Internet banking is a
term used to describe the process whereby a client executes banking transactions via electronic
means. This type of banking uses the internet as the chief medium of delivery by which banking
activities are executed. The activities clients are able to carry out are can be classified to as
transactional and non-transactional.
Functions of Internet Banking
The following are the main function of internet banking in India
 Issue Demand Drafts online
 Transfer funds to own and third party accounts
 Credit beneficiary accounts using the VISA Money Transfer, RTGS/NEFT feature
 Generate account statements
 Setup Standing Instructions
 Configure profile settings
 Use e Tax for online tax payment
 Use e Pay for automatic bill payments
 Interface with merchants for railway and airline reservations
 Avail DEMAT and IPO services