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Yashwantrao Chavan Maharashtra Open University Nashik School of Commerce & Management = ‘Yashwantrao Chavan Maharashtra Open U it MBA - General (P79) Dnyangangotri, Near Gangapur Dam, Nashik + aT aA : TAKEBACK TO BACK PRINT OF PROFORMA FOR APPROVAL OF PROJECT PROPOSAL [P79 PRS] ‘PROFORMA FOR APPROVAL OF PROJECT PROPOSAL {P79 PRI] (USE CAPITAL LETTERS ONLY) pane (2[o[i [@le[ BF [ele 22 A 17 14le 4 | Nameorite Sten, SUIPOAR AALAM MONO SAQTO ANSGAR T contact No.,43222N21B) —tmitin AShadabIZt @ Amel cow . ame & Code OK Aisla College Kealyouay centre Cote: 3S OB A- TiteorteProjece A STUBY OF CREDTT CARDS TN INGTAN _SCENARTO - _ _~ Name ofthe Supervisor GHATEKA ARSAAD For office use only IMI Study centre ar ea pg 7 { R SYNOPSIS 2 3 a" Submission SUPERVISOR | Submission | Submission | Approved “| | | LNot Approved Reason for aot suggestions | Not Approved | | iL 1 roa [Approving - ra Date & Sign | (Date & Sign of | jofévaluator | = _ | _| Evaluator [ _ ____ Reason for Not Approval - | Reframe e r rid 3 Submission | 4" Submission Submission { Title Objectives St { Hypothesis which can be tested Research Methodology _ | Objectives/ Hypothe: niversity Guidelines no ate & Sign of EvaluatorYashwantrao Chavyan Maharashtra Open University Nashik School of Commerce & Management sant ia Yashwantrao Chavan Maharashtra Open University MBA - General | sraiareiea Dnyangangotri, Near Gangapur Dam, Nashik 422222 IMP: TAKE BACK TO BACK PRINT OF PROFORMA FOR APPROVAL OF PROJECT PROPOSAL [P79 PRI] (USE CAPITAL LETTERS ONLY) prno. [210] t[B[oli [s/o [°|2 [2 [4l9 Jaleo l4 | 1) Name and Adires ofthe Suds SUB OAS AALAM MOHD SATIO ANS ART Pin code AMV OD contet No. AS 22 DYN Email id dab23@amail: Com caren “at Se CE Wicd nae vussaers Pol, Dieani pad Shanti Nagar fo Email: Qh (2 @Qmetl Cov Contact No. HOA SAF LBL er (5) Is the Supervisor an Academic Yes: eesstass No:__ Counsellor of the Management Programme of YCMOU (6) If Yes, Name of Study Centre and the courses / he / she is counselling for and since when: Sign ‘Student Date: 19/0220 Please do ot forget to enclose the synopsis of the project andthe Bio-dau ofthe Supervisor.‘A Synopsis of MBA Project On ‘STUDY OF CREDIT CARDS IN INDIAN SCENARIO’ Submitted to ‘The Director, School of Commerce and Management Yashwantrao Chavan Maharashtra Open University, Nashik. In partial fulfilment of the Requirement for the award of the degree of Master of Business Administration (MBA) By: Mr Shadab Alam Mohd Sajid Ansari PRN: 2018017002249404 Under the guidance of Mr. Arshad Shaikh Though The coordinator Study centre code 350344.INTRODUCTION On February 28, 1950— A Diners club card, the first multiuse credit card was issued. This marked the beginning of the era of plastic money. Diners card was launched in the Indian market in 1960. The Central Bank of India was the first bank in the country to introduce credit card system in August 1980, followed by several other banks. In India, both foreign and Indian banks are doing credit card business. The foreign banks have a dominant share due to various reasons like having been in the field for decades, sound operational and financial strength, strong brand reorganization etc. Later, with the aggressive entry of SBI, ICICI, and HDFC Banks the rules of the game changed. Among the banks issuing credit cards, the esteemed and well published cards are Citibank Diners Club Card, Citibank Visa Card and Credit Cards, Bank of Baroda’s Master Cards, the SBI Credit Cards, Bank of India’s India Card, Canada Banks Can Card and ICICI banks ICICI Card. These cards are positioned in a manner which gives an impression that the cards can be acquired by people from not only the upper class but also the middle-income categories. The new private sector banks like ICICI and HDFC have adopted a strategy of reaching lower down the income strata by lowering down their eligibility norms. Today credit card industry is highly competitive and almost all the banks are offering credit cards in association with Visa International or Master Card. There is now a flood of Indian banks offering credit cards to the potential customers. Multinational banks operating in India have also joined the bandwagon with high voltage advertising and seemingly competitive reward programme for loyal credit card users. Banks" income from credit cards can be divided mainly into four components namely annual fee, interchange charge, revolving fee (interest charged for revolving credit) and other fees. Indian credit card market is growing at almost 30 to 40 per cent annually and the number of credit cards in circulation is twenty-seven and half million as reported by credit card issuers. + Easy access to credit- The biggest advantage of a credit card is its easy access to credit, Credit cards function on a deferred payment basis, which means you get to use your card now and pay for your purchases later. + Building a line of credit- Credit cards offer you have the chance to build up a line of credit. This is very important as it allows banks to view an active credit history, based on your card repayments and card usage + Emi facility- Paying through EMI is cheaper than taking out a personal loan to pay for a purchase, such as a television or an expensive refrigerator. + Incentive and offers- Most credit cards come packed with offers and incentives to use your cards. These range from cash back to rewards point accumulation each time you swipe your card, which can later be redeemed as air miles or used towards paying your outstanding card dues.2.LITERATURE REVIEW Slowly as the world is getting more and more developed with the modern technologies the modern societies are getting more and more accustomed to the payment systems with the help of credit cards and slowly various types of reports, writings, analysis, etc, are coming up, 1. Sumit Agarwal & Jian Zhang in their report “A review of Credit Card Literature : Perspectives from Consumers “, states that since 2000 the prevalence and use of credit cards in the United Kingdom has grown sharply and now-a-day’s credit cards has become more reward based while the average fee is gradually falling. 2, Mehak Bagla in her report “Credit Card -Advantages and Disadvantages : All you need to know”, stated that just like a coin has two sides, everything has its own advantages and disadvantages and credit cards are no different and so while we buy a credit card we should keep in mind that a credit card is such a financial instrument which can never hurt our financial health but instead it can increase our financial health if we use it properly. 3. Stephen Vanderpool, in his report, “ Pros and Cons of Shopping with a Credit Card” stated that credit cards are tools and like most tools they can be incredibly helpful when used properly but can be dangerous when used incorrectly. Then the benefits of doing purchase on credit cards rather than using cash helps the credit card members in earning rewards alongwith gaining valuable consumer protections and the most common disadvantages of credit card is when there is overspending on credit cards leading to unnecessary payment of interest charges. 4, Shritama Bose in her report, “ Credit Card base grows fastest in nearly two years in March " stated that India’s credit card user base increased at the fastest pace in 23 months in March 2022, suggesting a return to preCovid era trends.3: RESEARCH AND METHODOLOGY Research Design Research design is the blue print for empirical research work that guides the researcher in a scientific way towards the achievement of the objectives. Survey method has supported the researcher to find the perception, usage, and awareness of credit cards among the bank customers. Sample Design: Sampling design is imperative in every scientific study. Hence, the researcher decided to collect the data through multi stage sampling. OBJECTIVE OF STUDY To study the awareness of bank customers about credit cards, To assess the eligible credit limit and the actual credit limit availed by the card holders. To examine the extent of usage of credit cards by card holders. To find out the attitude of card holders towards credit cards, To offer suggestions for further improvements,4: HYPOTHESIS + There are no significant differences in the mean satisfaction scores of the card holders holding different brands of credit cards. + Mean satisfaction scores of card holders do not differ significantly according to the differences in their eligible credit limit. + Size of family and extent of usage of credit cards are not significantly associated, + There are no significant differences in the mean satisfaction scores of the credit card holders differing in their attitude towards credit cards,5, Data Presentation and Analysis Data Collection By using the interview schedule, the researcher interviewed the bank customers who do not possess credit cards. Interviews were conducted at the bank premises with the permission of the bank managers concerned. The questionnaire was issued to the credit card holders, The credit card holders were contacted in the bank premises, at ATM Centres and mercantile establishments and the data were collected. The data thus collected were posted in the master table to facilitate further processing. Statistical analysis of the data was done through SPSS software in computer. + Primary Data The study was based on primary data. The tools constructed for the collection of data were Interview Schedule for the selected bank customers who do not possess credit cards and Questionnaire for the credit card holders. Demographic profiles pertaining to the respondents were included in Part A of the Interview Schedule and Questionnaire. Part B included questions relating to the banking related profile. Questions required for ascertaining bank customers “awareness about credit cards have been given in Part C of the Interview Schedule for the respondents not possessing credit cards. In the case of credit card holders” questionnaire, questions pertaining to credit card holding were included in Part C and the reasons for buying credit card in Part D. Part £ and F of the questionnaire were designed to understand card holders “attitude and satisfaction towards credit cards respectively. Questions in Part G and H included questions for ascertaining credit card holders” perception and experience regarding the role of core and supplementary services at the product level.6.Finding, conclusion, and suggestions Findings Customer Awareness about Credit Cards It is observed from the analysis of bank customers” awareness about credit cards that ICICI credit cards are more popular which follwed is by SBI Card and HDFC Card. Can Card is found to be less popular among the sampled respondents. Regarding the source of information about credit cards the respondents" revealed that the agents of ICICI bank were the source of information about ICICI card. In the case for SBI Card, advertisements provided the necessary knowledge and for HDFC cards, the bank was the source of necessary information for the customers. Regarding the conditions and charges on credit cards, majority (64%) are aware of the basic conditions and 76 percent of the respondents know about the charges imposed on the services. Cash withdrawal facility on credit cards is not known to majority (68%) of the respondents. None of the sampled respondents have awareness about the interest free credit period. Conclusions The credit card issue in terms of number of credit cards witnessed a whopping growth during the past five years. in terms of key players ICICI has notched the landmark figure of 90 lakh credit cards by 2008 taking the position of number one player in the segment. Itis further concluded that there are a number of bank customers who do not have any knowledge about credit cards. Many people have knowledge about credit cards, but do not possess credit cards because of the fear of falling into debt trap. High income earners and highly educated class use credit cards more, availing high credit limits. Extent of usage of credit cards is smaller among higher proportion of the card holders. Customers" satisfaction is found to be less because of high rate of interest. Customers perceived core services and facilitating services at higher level. Card holders face the major problem of lack of proper advice from banks. Credit card market is yet to realize its potential. ‘Suggestions Popularizing the Credit Cards Creating Awareness about Interest Free Credit Direct Marketing Implementing Regulatory Measures Reducing Interest RatesLIMITATION OF STUDY: 1.As convenient as it may seem to use a credit card as a made of payment, it also comes with its limitations. 2.For instance, the rate can change at the creditor's discretion. 3. Although you may have a low rate when you sign up for the account, the credit can change it for just about any reason. 3.Also because you have a credit limit you may not have enough credit available to pay your business obligations if that is your only source of financing, 4.Credit card holders and non-holders who do not have bank account are not included in this study. 5, The study covers individual card holders only. Corporate card holders have been excluded from this study. PROJECT SCOPE & EXPECTED CONTRIBUTION: Customer Awareness about Credit Cards It is observed from the analysis of bank customers” awareness about credit cards that ICICI credit cards are more popular which followed is by ‘SBI Card and HDFC Card. Can Card is found to be less popular among the sampled respondents, Regarding the source of information about credit cards the respondents™ revealed that the agents of ICICI bank were the source of information about ICICI card. In the case for SBI Card, advertisements provided the necessary knowledge and for HDFC cards, the bank was the source of necessary information for the customers. Regarding the conditions and charges on credit cards, majority (64%) are aware of the basic conditions and 76 percent of the respondents know about the charges imposed on the services. Cash withdrawal facility on credit cards is not known to majority (68%) of the respondents. None of the sampled respondents have awareness about the interest free credit period,CHAPTERIZATION: CHAPTER+I: Introduction CHAPTER-II: Review of Literature CHAPTER-III: Research Methodology CHAPTER-IV: Hypothesis CHAPTER-V: Data presentation and analysis CHAPTER-VI: Finding, conclusion, and suggestions Bibliography & Referenc Knthana A. (1999), Managing complex production processes. Sloan Management Review. Winter, Vol. 40 No. Lavrakas, P. J. (1993), “Telephone Survey Methods: Sampling, Selection, and Supervision”, Newbury Park, CA: Sage, -1993 Linda K. Owens, 2002- “Introduction to Survey Research Design”, 5 SOS Sign of Research Candidate Sign of Research Supervisor Shadab Aalam Ansari ‘Mr, Arshad ShaikhArshad Shaikh 701, PiraniPada Shanti Nagar Road, Bhiwandi Thane 421302 ‘Mob No.: 7021317171 E-Mail : arsh912@gmail.com OBJECTIVE: To perform, contribute and excel in an environment of continuous learning. ‘DESIRED INDUSTRY: i , ‘job that gives scope for optimising marketing and communication skill. PERSONAL PROFILE : = : Name Arshad Shaikh Date of Birth 03/11/1993 ‘Marital Status ‘Unmarried Passport No. M480970 Language Known ___English, Hindi, Marathi ‘Area of Interest Sales and Marketing ACADEMICPROFILE: = Year of Passing University Course Percentage 2016 Mumbai MMS. 65.00% 2013 Mumbai B.Com. 60.00% 2010. Mumbai HS.C. 60.00% 2008 Maharashtra SSC. 80.15% PROFESSIONAL EXPERIENCE : ‘A. KOTAK SECURITIES LTD (from 2ug2018 to till present) Designation : Deputy Manager ‘+ Maintain and manage portfolio of customers ‘+ Relationship management ‘* Make good relation with bank staffs * Training and development of bank staffs about product * Generate business and achieve sales target * To track market on daily basis for better customer relation * Work closely with account opening team and opration team + Solve queries coming from customer side as well as resolve them at primary stage ‘A. HDEC STANDARD LIFE (From Feb 2018 to July 2018) Designation : Sales Development Manager © Liaison with bank staff. '* Developing the business and generating leads. ‘+ Working with corporate management to formulate, ensure and maintain effective sales target. ‘+ Monitor portfolio performance. ‘© Strategies to tap the untapped market for all line products. ‘+ Providing awareness of products through presentation to bank staff and generate leads. ‘* Totrack and monitor the market in terms of size, potential, segmentation, monitoring and strategies to keep ahead the competition. ‘Achievements : - Achieved 6 month probationary milestone target in 4 months only.B, RELIANCE JIO INFOCOMM LIMITED (From July’16 to March’17) Designation : Senior Associate (Team Lead) © Co-ordination with seniors for sales and business projection. + Generatingleads and doing activities at corporate and market. ‘+ Selling telecom products and retail products. ‘* Handling team and guiding, motivating them for sales. © Manage and achieve sales volume, value and growth. Achievements : - Achieved self-target for selling high number of products. = Achieved team target by guiding them into the market. INTERNSHIP (12 Weeks} : Summer Intern at : Sony Electronics Pvt. Ltd. Project Title : Shopping Experience of Customers with reference. Project Responsibilities ‘Selling Sony LCD TVs at retail counter direct to the customers by explaining them features and handling customers’ demands, Project Learning : Learned to deal with different types of customers and understanding their different demands and how to deal with them. PROJECTS: ‘+ Dida Rural Market survey on “Consumer Buying Behavior With Respects To Crops and Fertilizers.” ‘* Dida Research on E-Commerce market. EXTRA CURRICULUM ACTIVITIES : : + Visited Assumption University,Panya-Piwat Institute of Management Studies{BANGKOK, THAILAND) «Exposure to Gems gallery,and Rice Mill( BANGKOK, THAILAND) + Actively participated in college festival(Rupantaran’15) Organised farewell party for seniors, PERSONAL QUALITIES : + Positive Attitude © Team player © Can face challenges TECHNICAL SKILLS : * Tally «Excel in MS-Office = Typing speed 20-30 wpm DECLARATION : I hereby declare that the above written particulars are true to the best of my knowledge and belief. Date: |\Q-02- 202% rshiad SAaikh Place: Bhiwandi (Signature)