Chapter-1

1.1 INTRODUCTION
ELECTRONIC PAYMENT: CURRENT SCENARIO AND SCOPE OF
IMPROVEMENT
1.1.1 Definition:
E-payments are an electronic or digital way of transferring funds. Essentially, you
can utilize electronic payment methods to transfer funds as an alternative to cash
payments. In India, you can access various types of electronic payment methods
based on your requirements.

The various types of e-payment include credit and debit cards, mobile wallets,
UPI, internet and mobile banking, and many more. You simply require a bank
account and an internet-enabled device to leverage e-payment solutions and pay
for various products and services.

1.1.2 Meaning:

Electronic Payments entail the transfer of funds through electronic or digital

mediums. You can choose from different e-payment methods like mobile wallets,
bank cards, mobile banking, etc. E-payments are quick and efficient, and the fund
transfer typically takes place instantly. It is a secure mode of making payments.

1.1.3 Introduction to the Industry:

When credit cards were introduced, and the 1990s, when the internet and
electronic banking became available. The first online payment system was created
in 1994 by First Virtual Holdings, and PayPal became a major online payment
system. Electronic payments (e-payments) have been around since the 1960s, in
the early 2000s. The introduction of smartphones in the late 2000s paved the way
for mobile payments, such as Apple Pay, Google Wallet, and Samsung Pay. These
systems use near-field communication (NFC) technology to securely communicate
payment information from the phone to the merchant's payment system.
On 11th April 2016 India launched their first electronic payment system, Unified
Payment Interface, commonly referred as UPI, is an instant payment system
developed by the National Payment Corporation on India (NPCI) in 2016. The
interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M)
transactions. It is used on mobile devices to instantly transfer funds between to
bank accounts. According to data from the NPCI, 12.20 billion UPI transactions
worth of Rs.18.41 lakh crore (equivalent to $ 222.17 billion) was processed in
January 2024, representing a 41.72% increase in transition value compare to
January 2023.

1.1.4 TYPES OF E-PAYMENT:

There are various types of digital payment system which are being used now-a-
days such as
1) Credit Card: the most famous type of payment for e-commerce
transactions is through credit cards. It is simple to use; the customer needs
to simply enter their credit card number and date of expiry in the
appropriate area on the seller's web page. To improve the security system,
increased security measures, for example, the use of a card verification
number (CVN), have been introduced online.

2) Debit Card: Debit cards are the second largest e-commerce payment
medium in India. Customers who need to spend online inside their
monetary limits prefer to pay with their Debit cards. With the debit card,
the customer can just compensation for purchased merchandise with the
 money that is already there in his/her bank account as opposed to the
credit card where the sum that the buyer spends.

3) E-WALLET: E-Wallet is a prepaid record that permits the customer to store

multiple credit cards, debit cards, and bank account numbers in a secure
environment. This eliminates the need to key in account information every
time while making payments. Once the customer has registered and
created.

4) Net Banking: this is another well-known method of making e-commerce

payments. It is a simple method of paying for online purchases directly
from the customer's bank. It uses a comparable method to the debit card of
paying money that is already there in the customer's bank. Net banking
does not require the user to have a card for payment purposes yet the user
needs to register with his/her bank for the net banking office.

5) Mobile Payment: one of the latest methods of making online payments are
through mobile phones. Instead of utilizing a credit card or money, all the
customer needs to do is send a payment request to his/her service provider
by means of a text message; the customer's mobile record or credit card is
charged for the purchase. To set up the mobile payment system, the
customer simply needs to download software from his/her service
provider's website and afterward interface with the credit card or mobile
charging information. Some applications are being used today for mobile
payment transaction such as Google pay, Phonepe, Paytm, Google wallet,
PayPal, rupay, Amazon pay and Bhim upi. These all applications used the
method of electronic payment for transferring amount from one bank to
another by using either UPI or Net banking method.

6) DE-CENTRALIZED PAYMENT: Decentralized payment systems are a type of

electronic payment system. In a decentralized payment system, users,
customers, and vendors can exchange money without trusting a third party
to keep the network secure and operational. Instead, the network uses a
network of peers, or nodes, to communicate and cooperate to process,
validate, and settle transactions. This network could be based on a
blockchain, a distributed ledger, or a peer-to-peer protocol. Decentralized
 payment is also known as future payment where banks are not involved
while exchanging the money. It’s also known as future payment system.
Some examples of cryptocurrency are Bitcoin (BTC), Ethereum (ETH) and
Solana (SOL). It is also known as DEFI, uses emerging technology to remove
third parties and centralized institutions from financial transactions. The
component of DEFI is cryptocurrency, blockchain technology, and software
which allow people to transact financially with each other.

1.2 OBJECTIVE OF THE STUDY

 To study the awareness of bank customers to use mobile instruments as a
channel for accessing their banks accounts and remit as the E-Banking
allows costumer to perform many banking activities such as transferring
Money, Paying Bills, and checking bank balances etc. without visiting the
branch.
 To find out the frequency and the factors that influences the adoption of E-
Banking services.
 To measure the satisfaction level of people.
 To understand the problems encountered in by service class people while
using E-Banking services (ATM, Phone banking, etc.)

1.3 NEEDS FOR THE STUDY

 Now every bankers wants to attract the customers, therefore they offers
latest facilities to make the transaction easy and hassle-free. It seems that
there will be no bank in the market that can survive if he fails to provide up
to date facilities.
 To know the customers perception toward the E-banking service and to
explore more about the E-Banking we have taken this topic.
1.4 SCOPE OF THE STUDY
 The research area is academically fertile and needs consistent in-depth
studies. This research has confronted crucial time limitations. Whereas
twelve weeks were sufficient to effectively meet the research objectives
and completely answer the research question. However, the
methodological parameters have restricted the scope of the research. For
instance, the ideal number of samples could be attained due to the time
requirement, which directly related to the research time skyline. The
research area needed and still needs further investigation and exploration
beyond the scope of this dissertation. Therefore, this research focuses on
examining the modernistic payment behavior from a consumer perspective.

 Despite the existence of different paper-based and electronic-based

payment methods, this research intends to concentrate just two primary
payment methods that are money and debit card. Nonetheless, during the
preparation stage of this research, online and mobile payment methods
were added to this examination since found suggestively prevalence in the
Irish context, and subsequently widened the scope of the research.
Therefore, in terms of the literature search strategy, the accompanying
table is summing up the search terms for this examination.

1.5 RESERCH METHODOLOGIES

 Research is defined as human activity based on intellectual application in
the investigation of matter. The primary purpose for applied research is
discovering, interpreting, and the development of methods and systems for
the advancement of human knowledge on a wide variety of scientific
matters of our world and the universe. The term research is also used to
describe an entire collection of information about a particular subject.

 Methodology is the method followed while conducting the study on a

particular project .Through this methodology a systematic study is
conducted on the basis of which the basis of a report is produced.
 It is a written game plan for conducting Research. Research methodology
has many dimensions. It includes not only the research methods but also
considers the logic behind the methods used in the context of the study
and explains why only a particular method or technique has been used. It
also helps to understand the assumptions underlying various techniques
and by which they can decide that certain techniques will be applicable to
certain problems and other will not. Therefore in order to solve a research
problem, it is necessary to design a research methodology for the problem
as the some may differ from problem to problem.

 Nature:
The methodology adopted to achieve the project objective involved
exploratory research &descriptive research method. The information
required for fulfilling the objective of study was collected from various
primary and secondary sources.

 Type of Research:
This study is EXPLORATORY and DESCRIPTIVE in nature. It helps in breaking
vague problem into smaller and precise problem and emphasizes on
discovering of new ideas and insights. Exploratory research was conducted
during the initial stage of the research process which helped to refine the
problem into researchable one. It has progressively narrowed the scope of
research topic.

 Research Design:
Research design constitutes the blue print for the collection, measurement
and analysis of data. The present study seeks to identify the extent of
preferences of E-Banking over traditional banking among service class. The
research design is exploratory in nature. The research has been conducted
on service class people within HYDERABAD. For the selection of the
sample, convenient sampling method was adopted and an attempt has
been made to include all the age groups and gender within the service
class.
 Following are the methods of sources of data:

 Primary Data: Questionnaire was used to collect primary data from

respondents. The questionnaire was structured type and contained
questions relating to different dimensions of e- banking preferences among
service class such as level of usage, factors influencing the usage of e-
banking services, benefits accruing to the users of e-banking services,
problems encountered. An attempt was also made to elicit reasons for its
non-usage. The questions included in the questionnaire were open-ended,
dichotomous and offering multiple choices.

 Secondary Data:
1. Articles on E-Banking taken from journals, magazines published from time
to time.
2. Through internet

 Sampling Technique: The sampling technique used for judgment is

convenience and judgment sampling.

 Sampling Unit: It defines the target population that will be sampled i.e. it
answers who is to be surveyed. In this study, the sampling unit is the
people of HYDERABAD.

 Sampling Size: It indicates the numbers of people to be surveyed. Though

large samples give more reliable results than small samples but due to
constraint of time and money, the sample size was restricted to 100
respondents. The respondents belong to different income group and
profession.

 Method of Data Collection: The survey method is used to collect the data.
Various places of HYDERABAD visited for the purpose of collection of data.

 Research Instrument: The instrument used for gathering data was

questionnaire. To get further insight in to the research problem, interview
regarding their buying practices too was made. This was done to crosscheck
the authenticity of the data provided. To supplement the primary data and
 to facilitate the process of drawing inference, secondary data was collected
from published sources like magazines, journals, newspapers etc.

 Tools and Techniques of Analysis: The data so collected will be analyzed

through the application of statistical techniques, such as bar graphs and pie
charts.

1.5 LIMITATIONS
 We have only assumptions of data as we can’t make a regular visit to bank
for actual analysis.
 It’s a time consuming method to gather the information which limits us to
deep explore about E-Banking.
 Many people are away from net banking on the assumption that it is more
expensive than the traditional method of dealing with bank transaction.
 The infrastructure cost of providing E-banking facility is very high.

Chapter-2
2.1 REVIEW OF LITERATURE

 Miss. R. Elavarasi in her study on Customer Awareness and Preference

towards E-Banking Services of banks studies about way us to customer
awareness & to find out what they most preferred e-banking services of
banks. The researcher has identified which commercial bank provides
better service with regards to e-banking services to customers and also
identified satisfaction level of customer view about internet banking
website of banks. The data analysis shows that age, educational
 qualification, occupation, income level of customer are significant factor
that decide usage of e-banking services of various banks in study area.

 Sanghita Roy, Dr. Indrajit Sinha (2014) stated that E- payment system in
India, has shown tremendous growth, but still there has lot to be done to
increase its usage. Still 90% of the transactions are cash based. Technology
Acceptance Model used for the purpose of study. They found Innovation,
incentive, customer convenience and legal framework are the four factors
which contribute to strengthen the E- payment system.

 Deepak Mathur (2017) E-commerce provides the capability of buying and

selling products, information and services on the Internet. In an ecommerce
environment, payments take the form of money exchange in an electronic
form, and are therefore called Electronic Payment. E-Payment system is
secure, there should be no threat to the user credit card number, smart
card or other personal detail, payment can be carried out without
involvement of third party, and it makes E payment at any time through the
internet directly to the transfer settlement and form E-business
environment.

 Rakesh H.M & Ramya T.J (2014) in their research paper titled “A Study on
Factors Influencing Consumer Adoption of Internet Banking in India” tried
to examine the factors that influence internet banking adoption. It is found
that internet banking is influenced by its perceived reliability, Perceived
ease of use and Perceived usefulness. In the process of internet banking
services expert should emphasize the benefits its adoption provides and
awareness can also be improved to attract consumer’s attention to internet
banking services.

 Kartikeya Bolar (2014) In his research paper “End-user Acceptance of

Technology Interface In Transaction Based Environment “stated that
Creators and investors of technology need information about the
customers evaluation of their technology interface based on the features
 and various quality dimensions to make strategic decisions in improving
technology interfaces and compete on various quality dimensions

 Nit sure (2014) in his paper observed that the problem being faced by
developing countries like India in the adoption of E-banking initiatives due
to low dissemination of Information Technology. The paper highlighted the
problems such as security concerns, rules, regulation and management. In
India there is a major risk of the emergence of a digital split as the poor are
excluded from the internet and so from the financial system.

 AASTHAGUPTA (2013) describes that RBI played a significant role in

developing the payment system in the nation through its establishment.
ATM also provide better alternative to traditional payment system. RBI also
enhance the payment system by introducing MICR, RTGS, Card based
clearing etc.

 Rachna (2013) describes that electronic payment system is the basis of on

line payments and it make electronic payment at any time through the
internet directly to manage the e -business environment. The risk to the
online payments are theft of payments data personal data and fraudulent
rejection on the part of customer.

2.2 REVIEW OF TOPIC

 Definition:
 Electronic payment, often referred to as e-payment, is a financial
transaction conducted electronically. Instead of traditional paper
methods such as cash or checks, e-payment relies on electronic means
to transfer funds between parties. This can include transactions made
through credit or debit cards, bank transfers, digital wallets, and various
online payment platforms. E-payments are typically conducted over the
internet or through electronic devices like smartphones, computers, or
 point-of-sale terminals. They offer convenience, speed, and security
compared to traditional payment methods, and have become
increasingly prevalent in modern commerce and financial transactions.

 Advantages & Disadvantages:

1. Advantages:
 Convenience: E-payments allow transactions to be conducted anytime,
anywhere, as long as there is an internet connection or access to
electronic devices like smartphones or computers. This convenience
eliminates the need for physical visits to banks or stores.

 Speed: Electronic payments are processed much faster than traditional

methods like checks or money orders. Transactions can be completed in
seconds or minutes, enabling faster access to funds for both the payer
and the payee.

 Security: E-payment systems often incorporate advanced security

measures such as encryption, authentication, and fraud detection to
protect sensitive financial information. This reduces the risks associated
with theft, loss, or counterfeit of physical currency.

 Cost-Effectiveness: Compared to handling and processing physical cash

or checks, e-payments can be more cost-effective for businesses and
individuals. They eliminate the need for manual processing, reduce
administrative overhead, and can lower transaction fees associated with
traditional banking methods

 Accessibility: Electronic payment methods are accessible to a wider

range of people, including those without access to traditional banking
services. Mobile payment solutions, for example, enable individuals to
participate in the digital economy using just a smartphone, even in
regions with limited banking infrastructure.
2. Disadvantages:
While electronic payments offer numerous advantages, there are also some
potential disadvantages associated with them:

 Security Concerns: Despite advanced security measures, electronic

payment systems are vulnerable to cyber security threats such as
hacking, phishing, and data breaches. If unauthorized access occurs,
sensitive financial information could be compromised, leading to
identity theft or fraud.

 Dependence on Technology: Electronic payment systems rely on

technology infrastructure such as internet connectivity, servers, and
electronic devices. Any disruptions to these systems, such as power
outages, network failures, or software glitches, can disrupt payment
processing and cause inconvenience for users.

 Privacy Issues: Electronic payment transactions often involve the

collection and storage of personal and financial data by payment
processors, banks, and third-party service providers. Concerns about
privacy arise regarding the handling and potential misuse of this data,
particularly in cases where user consent or regulatory compliance is
unclear.

 Transaction Fees: While electronic payments can be cost-effective

compared to traditional methods, some payment processors may charge
transaction fees, particularly for certain types of transactions or
international transfers. These fees can add up over time and increase
the overall cost of using electronic payment services.

 Fraud and Disputes: Electronic payments are susceptible to fraudulent

activities such as unauthorized transactions, chargebacks, and payment
disputes. Resolving these issues can be time-consuming and complex,
 requiring investigation by financial institutions and potentially leading to
financial losses for individuals or businesses involved.

 Functions:
 The functions of electronic payment systems encompass various
processes and capabilities that facilitate financial transactions
electronically. Here are some key functions:

 Authorization: Electronic payment systems verify the identity of the

payer and authorize transactions based on available funds, credit limits,
or other predefined criteria. This ensures that only legitimate
transactions are processed.

 Authentication: Ensuring the authenticity of both the payer and the

payee is crucial in electronic payments. Authentication methods may
include passwords, PINs, biometric verification, or two-factor
authentication to prevent unauthorized access to accounts or fraud.

 Electronic payment systems facilitate the transfer of funds between the

payer and the payee. This involves securely transmitting transaction
details, such as the amount, recipient information, and transaction
purpose, and updating account balances accordingly.

 Funds Transfer: Electronic payment systems enable the transfer of

funds from the payer's account to the payee's account, often in real-
time or within a short period. This can include domestic transfers,
international remittances, peer-to-peer payments, and bill payments.

 Settlement: After a transaction is authorized and processed, electronic

payment systems facilitate the settlement process, where funds are
transferred between financial institutions involved in the transaction.
 Settlement ensures that both parties receive the appropriate funds and
that accounts are accurately updated.

 Record-Keeping: Electronic payment systems maintain detailed records

of transactions, including transaction dates, amounts, participants, and
transaction statuses. These records serve as a valuable audit trail for
tracking financial activity, resolving disputes, and managing finances
effectively.

 Security: Electronic payment systems employ various security measures

to protect sensitive financial information and prevent unauthorized
access or fraud. This includes encryption, tokenization, fraud detection
algorithms, and secure authentication methods to safeguard
transactions and user data.

 Integration: Electronic payment systems often integrate with other

financial services, applications, and platforms to provide additional
functionalities and enhance the user experience. This may include
integration with accounting software, e-commerce platforms, mobile
wallets, loyalty programs, and financial management tools.

 Compliance: Electronic payment systems adhere to regulatory

requirements and industry standards to ensure compliance with
applicable laws and regulations. This includes anti-money laundering
(AML) regulations, Know Your Customer (KYC) requirements, data
protection laws, and payment card industry (PCI) standards.

 Customer Support: Electronic payment systems provide customer

support services to assist users with account inquiries, transaction
issues, technical support, and fraud prevention. This may include online
help resources, phone support, email support, and live chat assistance
to address user concerns promptly.
 Objectives:
The objectives of electronic payment systems encompass various goals aimed
at improving efficiency, convenience, security, and accessibility in financial
transactions. Here are some key objectives:

 Efficiency: Electronic payment systems aim to streamline the payment

process, reducing the time and effort required to complete transactions.
By automating payment processes and eliminating manual tasks,
electronic payments can improve operational efficiency for both
businesses and consumers.

 Convenience: One of the primary objectives of electronic payment

systems is to offer greater convenience to users. By enabling
transactions to be conducted electronically anytime, anywhere, and
through various channels such as online, mobile, and point-of-sale
terminals, electronic payments provide users with greater flexibility and
accessibility.

 Cost Reduction: Electronic payment systems strive to reduce the costs

associated with traditional payment methods such as cash handling,
check processing, and physical infrastructure. By digitizing payment
processes, businesses can save on expenses related to printing,
transportation, storage, and security of physical currency.

 Security: Ensuring the security of financial transactions and protecting

sensitive data is a fundamental objective of electronic payment systems.
These systems implement robust security measures such as encryption,
authentication, tokenization, and fraud detection to safeguard against
unauthorized access, data breaches, and fraudulent activities.
 Speed: Electronic payment systems aim to expedite the processing and
settlement of transactions, enabling faster access to funds for both the
payer and the payee. Real-time or near-real-time payment processing
reduces the time it takes for funds to be transferred, enhancing liquidity
and cash flow management.

 Accessibility: Electronic payment systems seek to provide inclusive

access to financial services for individuals and businesses, regardless of
geographical location or banking infrastructure. By leveraging
technology such as mobile devices and internet connectivity, electronic
payments extend financial inclusion to underserved populations and
remote areas.

 Integration: Electronic payment systems aim to seamlessly integrate

with other financial services, applications, and platforms to provide a
comprehensive and interconnected ecosystem. Integration with
accounting software, e-commerce platforms, mobile wallets, and other
digital services enhances the user experience and enables innovative
financial solutions.

 Compliance: Electronic payment systems adhere to regulatory

requirements and industry standards to ensure compliance with
applicable laws and regulations. Compliance objectives include anti-
money laundering (AML) regulations, know your customer (KYC)
requirements, data protection laws, and payment card industry (PCI)
standards.

 Innovation: Electronic payment systems continually evolve to

incorporate new technologies, features, and functionalities that
enhance user experience, security, and efficiency. Innovation objectives
include the adoption of emerging technologies such as block chain,
 artificial intelligence, and biometrics to drive innovation in electronic
payments.

Overall, the objectives of electronic payment systems aim to deliver secure,

efficient, and convenient financial transactions while promoting financial
inclusion, innovation, and compliance with regulatory standards.

 Types:
Electronic payment systems encompass a wide range of methods and
technologies for transferring funds electronically. Here are some common
types of electronic payment:

 Credit and Debit Cards: Credit and debit cards are widely used for
electronic payments both online and in-person. These cards are linked to
bank accounts and enable users to make purchases by swiping, tapping, or
entering card details.

 Online Banking: Online banking allows users to transfer funds, pay bills,
and make purchases through their bank's website or mobile app. This
method enables users to manage their finances and conduct transactions
from anywhere with internet access.

 Mobile Payments: Mobile payment solutions such as Apple Pay, Google

Pay, and Samsung Pay enable users to make purchases using their
smartphones or other mobile devices. These systems use near-field
communication (NFC) technology to securely transmit payment information
to point-of-sale terminals.

 Digital Wallets: Digital wallets store payment information securely and

allow users to make purchases online and in-store using stored credit or
debit card details, as well as other payment methods like crypto currencies
or loyalty points.
  Peer-to-Peer (P2P) Payments: P2P payment platforms like PayPal, Venmo,
and Cash App enable users to transfer funds directly to other individuals
using their email address, phone number, or username. These platforms
are commonly used for splitting bills, repaying debts, and sending money to
friends and family.

Chapter-3
3.1 COMPANY PROFILE
ABOUT NISC
National Small Industries Corporation (NSIC) is an ISO 9001:2015 certified
Government of India Enterprise under Ministry of Micro, Small and Medium
Enterprises (MSME). NSIC has been working to promote aid and foster the growth
of micro, small and medium enterprises in the country. NSIC operates through
countrywide network of offices and Technical Centers in the Country. In addition,
NSIC has set up Training cum Incubation Centre managed by professional
manpower.

 Mission:
“To promote and support Micro, Small & Medium Enterprises (MSMEs)
Sector” by providing integrated support services encompassing Marketing,
Technology, Finance and other services.

 Vision:
To be premier organization fostering the growth of Micro, Small and
Medium Enterprises (MSMEs) Sector.

 Schemes of NSIC
 NSIC facilitates Micro, Small and Medium Enterprises with a set of specially
tailored scheme to enhance their competitiveness. NSIC provides integrated
support services under Marketing, Technology, Finance and other Support service.

 Marketing Support
Marketing has been identified as one of the most important tool for business
development. It is critical for the growth and survival of MSMEs in today's intensely
competitive market. NSIC acts as a facilitator and has devised a number of schemes
to support enterprises in their marketing efforts, both domestic and foreign
markets. These schemes are briefly described as under:

 Consortia and Tender Marketing

Small Enterprises in their individual capacity face problems to procure &
execute large orders, which deny them a level playing field a large enterprises. NSIC
forms consortia of Micro and Small units manufacturing the same product, thereby
pooling in their capacity.
NSIC applies the tenders on behalf of single MSE/Consortia of MSEs for securing
orders for them. These orders are then distributed amongst MSEs in tune with their
production capacity.

 Single point Registration for Government Purchase

NSIC enlists Micro & Small Enterprises (MSEs) under Single Point Registration
scheme (SPRS) for participation in Government Purchases. The units enlisted under
Single Point Registration Scheme of NSIC are eligible to get the benefits under
Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012 as
notified by the Government of India, Ministry of Micro Small & Medium Enterprises,
New Delhi vide Gazette Notification dated 23.03.2012 and amendment vide order
no. S.O. 5670(E) dated 9th November 2018. The enlistment under SPRS is
completely online. Login: www.nsicspronline.com
 Issue of the Tender Sets free of cost.
 Exemption from payment of Earnest Money Deposit (EMD),
 In tender participating MSEs quoting price within price band of L1+15 per
cent shall also be allowed to supply a portion up-to 25% of requirement by
bringing down their price to L1 Price, where L1 is non MSE.
  Consortia facility for Tender Marketing.
 MSME Global Mart B2B Web Portal for MSMEs
Information today is becoming almost as vital as the air we breathe. We need
it every minute of our working lives. With increase in competition and melting away
of international boundaries, the demand for information is reaching new heights.
NSIC, realizing the needs of MSMEs, is offering Infomediary Services which is a one-
stop, one-window bouquet of aids that will provide information on business,
technology and finance, and also exhibit the core competence of Indian SMEs
through digital presence. The corporation is offering Infomediary Services through
its MSME Global Mart www.msmemart.com; which is a Business to Business (B2B)
web portal. The services are available through Annual Membership.
 Create your Company's Web Page in minutes
 Display Products & Services 24*7
 Connect with Buyers & Suppliers Globally
 Information’s on Events & Exhibitions
 Keyword based Unlimited Tender Alert
 Franchise & Distributorship Opportunities
 Request For Quotations
 Trade Leads
 Platform to Buy/Sell Used Machinery
 Service Available in Multiple Language
 Free Membership for SC/ST Entrepreneurs for one year
 Marketing Intelligence
Collect and disseminate both domestic as well as international marketing
intelligence for the benefit of MSMEs. This cell, in addition to spreading awareness
about various programs/schemes for MSMEs, will specifically maintain database
and disseminate information.

 Exhibitions and Technology Fairs

To showcase the competencies of Indian MSMEs and to capture market
opportunities, NSIC participates in select International and National Exhibitions and
Trade Fairs every year. NSIC facilitates the participation of the small enterprises by
providing concessions in rental etc. Participation in these events exposes MSMEs
to international practices and enhances their business prowess.

 Buyer-Seller meets
 Bulk and departmental buyers such as the Railways, Defense,
Communication departments and large companies are invited to participate in
buyer-seller meets to enrich small enterprises knowledge regarding terms and
conditions, quality standards, etc. required by the buyer. These programs are
aimed at vendor development from MSMEs for the bulk manufacturers.

 Credit Support
NSIC facilitates credit requirements of small enterprises in the following areas:

 Financing for procurement of Raw Material (Short term)

NSIC's Raw Material Assistance Scheme aims at helping Small Enterprises by
way of financing the purchase of Raw Material (both indigenous & imported). The
salient features are:
1. Financial Assistance for procurement of Raw Material up-to 180 days.
2. MSMEs helped to avail Economics of Purchases like bulk purchase, cash
discount etc.
 Financing for Marketing Activities (Short term)
NSIC facilitates financing for marketing actives such as Internal Marketing, Exports
and Bill Discounting.

 Credit Facilitation through Bank

To meet the credit requirements of MSME units, NSIC has entered into a
Memorandum of Understanding with various Nationalized and Private Sector
Banks. Through syndication with these banks, NSIC facilitates MSME in accessing
credit support (fund based or non-fund based limits) from the banks. NSIC assists
MSMEs in completion of the documentation for submitting the proposals to the
banks and also does the follow up with the banks. These handholding supports are
provided by NSIC without any cost to the MSMEs.
 Technology Support
Technology is the key to enhancing a company's competitive advantage in
today's dynamic information age. Small enterprises need to develop and
implement a technology strategy in addition to financial, marketing and
operational strategies and adopt the one that helps integrate their operations with
their environment, customers and suppliers.
NSIC offers small enterprises the following support services through its Technical
Services Center and Extension Centers:
1. Advise on application of new techniques
2. Material testing facilities through accredited laboratories
3. Product design including CAD
4. Common facility support in machining, EDM, CNC, etc.
5. Energy and environment services at selected centers
6. Classroom and practical training for skill up gradation

NSIC Technical Services Centers are located at the following places:

Name of the Centre Focus area
Chennai Leather & Footwear
Howrah General Engineering
Hyderabad Electronics & Computer
Application
New Delhi Machine Tools & related activities
Rajkot Energy Audit & Energy
Conservation activities
Rajpura (Pb) Domestic Electrical Appliances
Aligarh (UP) Lock Cluster & Die and Tool making
Neemka (Haryana) Machine Tools & related activities

 Software Technology cum Business Parks

NSIC has established Software Technology cum Business Parks at New Delhi
and Chennai for providing the space to small and medium enterprises in software
development and to IT/ITES/MSME units not regd. with STPI or the units that are
falling under the overall definition of MSME as per the guidelines of Ministry of
Micro, Small and Medium Enterprises. Units other than MSME such as
Banks/PSUs/Financial Institutions, corporate sector etc. would also be considered
for allotment on a case-to-case on merit with the approval of Competent Authority.
NSIC Software Technology cum Business Parks, New Delhi is located in a prime
location at Okhla Industrial Area adjacent to NSIC bhawan with a total built up area
of approx. 53000sq.ft. This location is in the near vicinity to Nehru Place.
(Commercial center of computer industry). NSIC Software Technology cum
Business Parks, Chennai is located in a prime location at Guindy Industrial Estate
(Jawaharlal Nehru Statue) with a total built area of 48,000 Sq. Ft. This location is in
the near vicinity to domestic and international Airports.

 Incubation of unemployed youth for setting up of New Micro & Small

enterprises
This program facilitates setting up of new enterprises all over the country by
creating self-employment opportunities for the unemployed persons. The
objective of this scheme is to facilitate establishment of new small enterprises by
way of providing integrated services in the areas of training for entrepreneurial skill
development, selection of small projects, preparation of project profiles/reports,
identification and sourcing of plant, machinery and equipment, facilitating sanction
of credit facility and providing other support services in order to boost the
development of small enterprises in manufacturing and services sectors.

 International Cooperation
NSIC facilitates sustainable international partnerships. The emphasis is on
sustainable business relations rather than on one-way transactions. Since its
inception, NSIC has contributed to strengthening enterprise-to-enterprise
cooperation, south cooperation and sharing best practices and experiences with
other developing countries, especially those in the African, Asian and Pacific
regions. The features of the scheme are:
1. Exchange of Business / Technology missions with various countries.
2. Facilitating Enterprise to Enterprise cooperation, JVs, Technology Transfer &
other form of sustainable collaboration.
3. Explore new markets & areas of cooperation:
4. Identification of new export markets by participating in sector- specific
exhibitions all over the world.
5. Sharing of Indian experience with other developing countries
 International Consultancy Services
For the last five decades, NSIC has acquired various skill sets in the
development process of small enterprises. The inherent skills are being networked
to offer consultancy services for other developing countries. The areas of
consultancy are as listed below:
1. Capacity Building
2. Policy & Institutional Framework
3. Entrepreneurship Development
4. Business Development Services
 Quality Policy

 We shall endeavor to provide effective and prompt service so as to achieve

total customer satisfaction at all times. We shall continuously upgrade our
service quality, communication facilities and the skill sets to meet customer
requirements efficiently.
 We shall constantly adapt, innovate and refine our processes in line with
global business trends to maintain credibility and leadership in our field.
 We commit ourselves for fair play, transparency and sincere endeavor for
the promotion and growth of Micro, Small & Medium Enterprises.
 We shall strive to achieve operational efficiency by attaining better
productivity and profitability. We shall abide by statutory and legal
regulations while carrying out our activities.
 We shall continually improve Quality Management System (QMS) processes
through applying Strategic Direction against identified process risks with
respect to context of the Organization.
 We shall ensure participation of our stakeholders including Employees,
Suppliers and Customers.
 Quality Policy has been communicated to all Interested Parties including
Public.

 Quality Objective

 To enhance reach of the Corporation resulting in growth in its business.

 To achieve operational efficiency and self-sustenance by attaining better
productivity and profitability.
 To upgrade the professional skills of all employees keeping in pace with
business needs.
 To provide safe, clean, hygienic & congenial work environment for effective
contribution by every employee. To provide safe, clean, hygienic & congenial
work environment for effective contribution by every employee.

 Additional Quality Objectives for NTSCs

  To provide training for skill up-gradation of trainees leading to opportunities
for their employment/self-employment
 To provide common facility services to industries for enhancing their
competitiveness and quality.

 BOARD OF DIRECTORS
1) Shri Vijayendra, IAS Chairman & Managing Director.
2) Shri P. Udayakumar (Director P&M) Functional Director.
3) Shri Gaurang Dixit (Director Finance) Functional Director.
4) Smt. Alka Nangia Arora (Joint Secretary) Government Nominee Director.
5) Shri Rajib Kumar Sen Government Nominee Director.

3.2 INDUSTRY PROFILE

ABOUT US
Micro, Small and Medium Enterprises (MSME) sector has emerged as a
highly vibrant and dynamic sector of the Indian economy over the last five
decades. MSMEs not only play crucial role in providing large employment
opportunities at comparatively lower capital cost than large industries but
also help in industrialization of rural & backward areas, thereby, reducing
regional imbalances, assuring more equitable distribution of national income
and wealth. MSMEs are complementary to large industries as ancillary units
and this sector contributes enormously to the socio-economic development
of the country.
Khadi is the proud legacy of our national freedom movement and the father
of the nation. Khadi and Village Industries (KVI) are two national heritages
of India. One of the most significant aspects of KVI in Indian economy is that
it creates employment at a very low per capita investment. The KVI Sector
not only serves the basic needs of processed goods of the vast rural sector
of the country, but also provides sustainable employment to rural artisans.
KVI today represent an exquisite, heritage product, which is 'ethnic' as well
as ethical. It has a potentially strong clientele among the middle and upper
echelons of the society.
Coir Industry is an agro-based traditional industry, which originated in the
state of Kerala and proliferated to the other coconut producing states like
Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal, Maharashtra,
Assam, Tripura, etc. It is an export oriented industry and having greater
potential to enhance exports by value addition through technological
interventions and diversified products like Coir Geotextiles etc. The
acceptability of Coir products has increased rapidly due to its 'environment
friendly' image.
Ministry of Micro, Small & Medium Enterprises (M/o MSME) envision a
vibrant MSME sector by promoting growth and development of the MSME
Sector, including Khadi, Village and Coir Industries, in cooperation with
concerned Ministries/Departments, State Governments and other
Stakeholders, through providing support to existing enterprises and
encouraging creation of new enterprises.
The Micro; Small and Medium Enterprises Development (MSMED) Act was
notified in 2006 to address policy issues affecting MSMEs as well as the
coverage and investment ceiling of the sector. The Act seeks to facilitate the
development of these enterprises as also enhance their competitiveness. It
provides the first-ever legal framework for recognition of the concept of
"enterprise" which comprises both manufacturing and service entities. It
defines medium enterprises for the first time and seeks to integrate the three
tiers of these enterprises, namely, micro, small and medium. The Act also
provides for a statutory consultative mechanism at the national level with
balanced representation of all sections of stakeholders, particularly the three
classes of enterprises; and with a wide range of advisory functions.
Establishment of specific funds for the promotion, development and
enhancing competitiveness of these enterprises, notification of
schemes/programs for this purpose, progressive credit policies and practices,
preference in Government procurements to products and services of the
micro and small enterprises, more effective mechanisms for mitigating the
problems of delayed payments to micro and small enterprises and assurance
of a scheme for easing the closure of business by these enterprises are
some of the other features of the Act.
On 9 May 2007, subsequent to an amendment of the Government of India
(Allocation of Business) Rules, 1961, erstwhile Ministry of Small Scale
Industries and the Ministry of Agro and Rural Industries were merged to form
the Ministry of Micro, Small and Medium Enterprises (M/o MSME). This
Ministry now designs policies and promotes/ facilitates programs, projects
and schemes and monitors their implementation with a view to assisting
MSMEs and help them to scale up.
The primary responsibility of promotion and development of MSMEs is of the
State Governments. However, the Government of India, supplements the
efforts of the State Governments through various initiatives. The role of the
M/o MSME and its organizations is to assist the States in their efforts to
encourage entrepreneurship, employment and livelihood opportunities and
enhance the competitiveness of MSMEs in the changed economic scenario.
The schemes/ programs undertaken by the Ministry and its organizations
seek to facilitate/provide:i) adequate flow of credit from financial
institutions/banks; ii) support for technology up gradation and modernization;
iii) integrated infrastructural facilities; iv) modern testing facilities and quality
certification; v) access to modern management practices; vi)
entrepreneurship development and skill up gradation through appropriate
training facilities; vii) support for product development, design intervention
and packaging; viii) welfare of artisans and workers; ix) assistance for better
access to domestic and export markets and x) cluster-wise measures to
promote capacity-building and empowerment of the units and their
collectives.
 Organizational Setup
The M/o MSME is having two Divisions called Small & Medium Enterprises
(SME) Division and Agro & Rural Industry (ARI) Division. The SME Division
is allocated the work, inter- alia, of administration, vigilance and
administrative supervision of the National Small Industries Corporation
(NSIC) Ltd., a public sector enterprise and the three autonomous national
level entrepreneurship development/training originations. The Division is
also responsible for implementation of the schemes relating to Performance
and Credit Rating and Assistance to Training Institution, among others. SME
Division is also responsible for preparation and monitoring of Results-
Framework Document (RFD) as introduced in 2009 by the Cabinet
Secretariat under Performance Monitoring and Evaluation System (PMES).
The ARI Division looks after the administration of two statutory bodies viz.
the Khadi and Village Industries Commission (KVIC), Coir Board and a newly
created organization called Mahatma Gandhi Institute for Rural
Industrialization (MGIRI). It also supervises the implementation of the Prime
Minister's Employment Generation Programme (PMEGP).
The Implementation of policies and various programs schemes for providing
infrastructure and support services to MSME's is undertaken through its
attached office, namely the Office of the Development Commissioner (010
DC (MSME)), National Small Industries Corporation (NSIC), Khadi and
Village Industries Commission (KVIC); the Coir Board, and three training
institutes viz., National Institute for Entrepreneurship and Small Business
Development (NIESBUD), NOIDA, National Institute for Micro, Small and
Medium Enterprises (NI-MSME), Hyderabad, Indian Institute of
Entrepreneurship (lIE), Guwahati and Mahatma Gandhi Institute for Rural
Industrialization (MGIRI), Wardha a society registered under Societies
Registration Act, 1860.
The National Board for Micro, Small and Medium Enterprises (NBMSME)
was established by the Government under the Micro, Small and Medium
Enterprises Development Act, 2006 and Rules made thereunder. It
examines the factors affecting promotion and development of MSME,
reviews existing policies and programs and make recommendations to the
Government in formulating the policies and programs for the growth of
MSME.
Office of the Development Commissioner [MSME]
The Micro, Small and Medium Enterprises- Development Organization
(MSME-DO) is headed by the Additional Secretary & Development
Commissioner (MSME). The Office of the Development Commissioner
(Micro, Small & Medium Enterprises) assists the Ministry in formulating,
coordinating, implementing and monitoring different policies and programs
for the promotion and development of MSMEs in the country. In addition, it
provides a comprehensive range of common facilities, technology support
services, marketing assistance, etc. through its network of 30 Micro, Small
and Medium Enterprises-Development Institutes (MSME-Dls); 28 Branch
MSME-Dls; 4 MSME Testing centers (MSME-TCs); 7 MSME-Testing
Stations (MSME-TSs); 2 MSME-Training Institutes (MSME-Tls); and 1
MSME-Technology Development Center-Hand Tools (MSME-TDC-Hand
Tools). The % DC (MSME) also operates a network of Tool Rooms and
Technology Development centers (including 2 Footwear Training Institutes)
which are autonomous bodies registered as Societies under the Societies
Act. The Office implements a number of schemes for the MSME sector, the
details of which have been duly incorporated in the booklet.
Khadi & Village Industries Commission
The Khadi & Village Industries Commission (KVIC), established under the
Khadi and Village Industries Commission Act, 1956 (61 of 1956), is a
statutory organization engaged in promoting and developing khadi and
village industries for providing employment opportunities in rural areas,
thereby strengthening the rural economy. The Commission is headed by full
time Chairman and consists of 10 part-time Members. The KVIC has been
identified as one of the major organizations in the decentralized sector for
generating sustainable rural non-farm employment opportunities at a low per
capita investment. This also helps in checking migration of rural population
to urban areas in search of the employment opportunities. The main
functions of the KVIC are to plan, promote, organize and assist in
implementation of the programs/projects/schemes for generation of
employment opportunities through development of khadi and village
industries. Towards this end, it undertakes activities like skill improvement,
transfer of technology, research & development, marketing, etc. KVIC co-
ordinates its activities through State KVI boards, registered societies and
cooperatives. It has under its aegis a large number of industry-specific
institutions spread in various parts of the country.
Coir Board
The Coir Board is a statutory body established under the Coir Board Industry
Act, 1953 (NO. 45 of 1953) for promoting overall development of the coir
industry and improving the living conditions of the workers engaged in this
traditional industry. The Coir Board consists of a full-time Chairman and 39
part- time Members. The activities of the Board for development of coir
industries, inter-alia include undertaking scientific, technological and
economic research and development activities; collecting statistics relating
to exports and internal consumption of coir and coir products; developing
new products and designs; organizing publicity for promotion of exports and
internal sales; marketing of coir and coir products in India and abroad;
preventing unfair competition between producers and exporters; assisting
the establishment of units for manufacture of the products; promoting co-
operative organization among producers of husks, coir fiber, coir yarn and
manufactures of coir products; ensuring remunerative returns to producers
and manufacturers, etc.
The Board has promoted two research institutes namely, Central Coir
Research Institute (CCRI), Kalavoor, Alleppey, and Central Institute of Coir
Technology (CICT), Bengaluru for under taking research activities on
different aspects of coir industry which is one of the major agro based rural
industries in the country. The two major strengths of the coir industry are it
being export oriented and generating wealth out of the waste (coconut husk).
National Small Industries Corporation Limited (NSIC)
NSIC, established in 1955, is headed by Chairman-cum-Managing Director
and managed by a Board of Directors.
The main function of the Corporation is to promote, aid and foster the growth
of micro and small enterprises in the country, generally on commercial basis.
NSIC provides a variety of support services to micro and small enterprises
catering to their different requirements in the areas of raw material
procurement; product marketing; credit rating; acquisition of technologies;
adoption of modern management practices, etc.
NSIC implements its various programs and projects throughout the country
through its 9 Zonal Offices, 39 Branch Offices, 12 Sub Offices, 5 Technical
Services Centers, 3 Technical Services Extension Centers, 2 Software
Technology Parks, 23 NSIC-Business Development Extension Offices and
1 Foreign Office.