PROJECT REPORT

ON

“A Study on the Impact of Plastic Money on the Consumers”

A project submitted to

University of Mumbai for partial completion of Degree of

Bachelor of Management studies

Under the Faculty of Commerce

SUBMITTED BY

KHUSHBU PRAJAPATI

T.Y.B.M.S SEMESTER VI

ACADEMIC YEAR: 2020-2021

Under the Guidance of

MR. SACHIN PIMPLE

Anna Leela College of Commerce and Economics and

Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education Complex,
Buntara Bhavana Marg, Kurla East, Mumbai – 400070.
April 2021.

1
 Bunts Sangha Mumbai
Anna Leela College of Commerce and Economics
Shobha Jayaram Shetty College for BMS
Shashi Manmohan Shetty Higher Education
Complex,
Buntara Bhavan Marg, Kurla (E), Mumbai 400070.

Certificate

This is to certify that Ms. Khushbu Prajapati has worked and duly completed
her project work for the degree of Bachelor of Management Studies under the
Faculty of Commerce in the subject of Finance and her project is entitled, “A
Study on the Impact of Plastic Money on the Consumers”under my
supervision.

I further certify that the entire work has been done by the learner under my
guidance and part of it has been submitted previously for any Degree or
Diploma of any University.

It is her own work and facts reported by her personal findings and
investigations.

Name of Guide
MR. SACHIN PIMPLE

Date of Submission:

25-04-2021

2
 Declaration by learner

I the undersigned Miss. Khushbu Prajapati here by, declare that the work
embodied in this project work titled “A Study on the Impact of Plastic Money
on the Consumers”, forms my own contribution to the research work carried
out under the guidance of MR. SACHIN PIMPLE is a result of my own
research work and has not been submitted previously for any Degree or
Diploma of any University.

Whenever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

Sign of Student

Certified by,

MR. SACHIN PIMPLE

3
 Acknowledgement
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. Padma Deshmukh, for providing the
necessary facilities for completion of this project.

I take this opportunity to thank our Co-ordiantor, Mr. Sachin Pimple, for his moral
support and guidance.

I would like to express my sincere gratitude towards my guide Mr. Sachin Pimple
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazine related to my subject.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

4
 INDEX

SR. PAGE
NAME OF THE TOPIC
NO. NO.
A. Executive Summary 7

1. Introduction 8 - 23

1.1 Introduction 9

1.2 History of Plastic Money 9

1.3 Features of Plastic Money 11

1.4 Types of Plastic Money 13

1.5 Advantages of Plastic Money 20

1.6 Disadvantages of Plastic Money 22

2.A Research Methodology 24 – 26

2.1 Objective Of Study 25

2.2 Limitations Of Study 25

2.3 Research Design 25

2.B Conceptual Framework 27 - 37

1. Plastic Money System 28

2. Stages of Evolution of Money 28

The Role of Various Parties Involved in Plastic Card
3. 29
Payment
4. Operation of Plastic Money 30

5. Plastic Money Frauds 31

Growth prospects of plastic money
6. 32

7. Future prospects of plastic money 32

8. Credit card outstanding rising in India 33

5
9. Steps Taken by Indian Government to use Plastic Money 33
Plastic money plays a major role in the eradication of
10. 35
corruption in India.
11. Overcoming Challenges 35

12. How to Secure Plastic Money 35

13. Reserve Bank Of India Pitches For Cashless Society 37

3. Review of Literature 38 - 44

4. Data Analysis, Interpretation and Presentation of Data 45 - 64

5. Conclusion 65

5.1 Recommendation and Suggestions 66 – 67

6. Annexure 68 – 73

7. Bibliography 74

6
 EXECUTIVE SUMMARY

In India, it is relatively a new concept that is fast catching on. The Plastic money provides
convenience and safety to the customers. This research was undertaken to understand the
impact of plastic money on the Indian consumers, to study the satisfaction level of current
card holders and examine the present position and future prospects of plastic money in India.
A sample of 100 customers has been surveyed. The sample was selected by using
convenience sampling and target sampling technique. After the whole research the analysis
result shows that people have started using plastic money with the trend but a lot of people
still prefer to use paper money instead of debit or credit cards for payment. The findings of
the paper suggests to the major players that minimization of the interest rates, implementing
more transparent policies, providing knowledge to the employees and dissemination of
information among the customers must be created along with providing more facilitating
services. In the last half of the twentieth century, payment cards, credit, debit, and charge
cards have quietly revolutionized how we pay for goods and services. It is increasingly
common to find merchant who do not take cash or cheques and increasingly rare to find
merchants who refuse payment cards. Plastic money is a good system but if you are not
managing your plastic cards in a proper way that will lead to overspending, financial burdens,
and financial stress. Plastic money is convenient, less risky, and safer than paper money, but
it is important to remember that it is not compulsory that you should use plastic money
especially if you are not able to manage your money while using the plastic cards. When we
spend cash, there is emotional pain associated with handing over our money and concretely
knowing we now have less in our wallets. With paper money, the exchange of physical
money for goods is visible, tangible, and immediate, but when a plastic card is swiped, it
doesn't give any immediate feeling of loss. Even when a message is communicated to the
plastic money users, by the time they comprehend that the money is gone; the overspending
has already been done and cannot be reversed.

7
 CHAPTER 1 – INTRODUCTION

1.1 - Introduction

1.2 - History of Plastic Money

1.3 - Features of Plastic Money

1.4 - Types of Plastic Money

1.5 - Advantages of Plastic Money

1.6 - Disadvantages of Plastic Money

8
1.1 Introduction
Money is regarded as a medium of exchange and payment tool. Initially barter system was
used as the significant mode of payment. Over the years, money has changed its form from
coins to paper cash and today it is available in formless form as electronic money or plastic
card. The major change in banks which has been brought in by the technology is through
introduction of products which are alternative to cash or paper money. Plastic cards are one
of those types of innovations through which the customers can make use of banking services
just by owning the card issued by bank and that too without restricting himself in the official
banking hours. Plastic cards as the component of e - banking have been in use in the country
for many years now.
The growth of plastic money can be divided into two main perspectives, infrastructure and
consumer perspective. Making a strong pitch for promotion of electronic payments in the
country and making India a cashless economy.

1.2 History of Plastic Money

With hundreds of millions of plastic cards in circulation today, these Plastic cards have
become a way of life. India alone is home to millions of them. Initially positioned as a status
symbol these plastic cards have caught on in a big way amongst the educated population of
the country.
Extending credit to their customers has always been an extremely common practice. However
in the early 1940s, when individual retail merchants in America found it more and more
difficult to afford credit to these patrons, financial institutions came into the picture.
1946 -The earliest plastic card was called Charge. It and was invented in 1946. It revolved
around a system of credit developed by John Biggins a credit consultant at Flatbush National
Bank, Brooklyn, New York. This card allowed the customers to charge local retail purchases.
The merchant deposited the same at Biggins Bank. The bank reimbursed the merchant and
collected payment from the customer.
1951 -The Franklin National Bank in Long Island New York issued the first official credit
card. In 1951, Mr. Frank McNamara had just finished dinner in a New York restaurant when
to his acute embarrassment, he discovered that he had left his wallet in another suit. While
talking the restaurant owner into letting him pay the bill the next day, an idea for a new credit
card was already being concocted in his mind. Within a few months he formed a company
called Diners Club and convinced 27 restaurants and 200 people to join it. By 1951 there
were 42,000 Diners club cards in circulation.
1958 - American Express saw this as direct competition to its traveler`s cheque division and
brought out its own charge card in 1958. Within three months they managed half a million
beginning cardholders.
1960 - Bank of America introduced its own card called Bank Americard. With a small group
of cardholders and merchants, the bank began to license regional financial institutes to act as
Bank Americard for their region. Bank Americard grew and in the next few years more and
more communities across the US became serviced by a regional member.

9
1966 -Fourteen US banks in Buffalo, New York formed Interbank - a new association on the
same guidelines.
1967- Four California banks changed their name to the Western States Bankcard Association.
They opened membership to other financial institutions in the west the product called Master
Charge. Eventually all financial institutions and banks interested in issuing credit cards
became members of either Bank Americard or Master Charge. All parties benefited from this
system and led to rapid growth in cardholder accounts, merchant accounts and sales volumes.
1977 – Bank Americard became VISA and in 1979 MasterCharge became MasterCard
International.
1980- With only two players in domestic card industry, HSBC and Citibank the number
swelled to over 25 in the year 2010.
1981- Credit cards in India made their debut and are on the verge of an unprecedented boom.
1981 – 2010- This has virtually grown to over 4 million cards with over 25-30% of
compounded annual growth in new cardholder’s base.
The recent growth in the use of plastic money after 2010 mainly credit and debit cards has
been phenomenal. There are hundreds of millions of credit cards in circulation today, these
little rectangular pieces of polymerized substance have become a way of life. India alone is
home to millions of them.
Spending pattern through plastic market money has changed drastically. Travelling, dining
and jewellery are some the top purchases that Indians make through credit cards. Few years
ago, it was jewellery and apparel purchases that formed the largest chunk of purchases
through plastic money. Fuel accounts for a very small portion of credit card purchases as
these are largely paid through debit cards. This growing trend will soon rise up to the point
where the plastic money will completely replace the need for carrying cash.will this change
be for good or bad only the future will decide.
Plastic Money business is definitely going big time. In a country where a decade back people
three had hardly heard the word plastic money or credit card, it has been estimated that there
are likely to be around half million potential card users in the near future. This forecasting
derives credibility from the fact that more and more local and international financial
institutions are exhibiting enthusiasm in this direction. This in turn reflects prospects in
Indian market in accommodating numerous credit card competitors operating on the circuit,
ensuring healthy and competitive card business deals. However, the card-based usage has
picked up only during the last few years.
Payment by cards is now becoming a much preferred mode for making retail payments in the
country. Thus, plastic cards are such payment tool which gives a customer an opportunity of
non-cash payment of goods and services and are designed to facilitate small value retail
payments by offering a substitute for bank notes and coins and thus to complement traditional
payment instruments.
The recent growth in the use of plastic money mainly credit and debit cards has been
phenomenal. After the Demonetization by the Prime Minister Mr. Narendra Modi and his

10
emphasis on Cashless Transaction, Initially positioned as a status symbol, these plastic cards
have caught on in a big way amongst the educated population of the country.
With the Indian economy expanding rapidly at more than 7.5 percent per annum and the
middle class budding cashless transactions in India are becoming very popular. Generally,
increasing reliance on cashless transactions is seen as sign of a modern economy where there
is a strong synergy between the ordinary consumers and its financial institutions.
The plastic money in the form of cards was introduced by banks in India in 1990's. But it was
not very popular among Indian consumer at the time of its introduction. The change in
demographic features of consumers in terms of their income, marital status, education level
etc, upgradation of technology and its awareness has brought the relevant changes in
consumer’s preferences. These changing preferences have also modified their outlook and
decision regarding the acceptance and non- acceptance of particular product and services in
the market. Thus, the plastic cards are gaining popularity among bankers as well as customers
and getting accepted in the market place.
It can be well imagined from the discussion that no doubt, the plastic cards market is
growing at a large pace in India yet it has long way to go as it lacks behind if compared to the
usage trends of other countries. Hence, it has become important that the payment system in
India has to be modernized enough to be at par with the systems prevalent in other countries,
since our domestic financial markets are increasingly getting integrated with markets abroad .
RBI is taking important steps in order to enhance its usage and popularity through initiatives
like regulating card market to maintain the security levels and to build up confidence of
bankers and customers.
Despite the strong advances in e-payments, an estimated 90% of personal consumption
expenditure in India is still made with cash, which indicates the tremendous growth potential
of this business. So this can be considered as mere beginning which indicates the bright
future prospects of plastic card market in India.

1.3 Features of Plastic Money

Now a day a modern customers and client cannot think of banking without the facility of
plastic cards. Today credit and debit cards have largely replaced cheques as alternatives to
cash. Both are reasonably secured compared to cash and are widely accepted. User
friendliness and feasibility are the main features of plastic money that have made plastic
money popular not only in India but also all over the world.
1. Credit cards usage for travel bookings
Consumers started to make their bookings using cards and it has become a lifestyle choice
for most urban consumers.
2. Electronic transactions grew strongly with the help of Reserve Bank of India (RBI)
The consumers who were using online shopping for a long period switched to net banking
facilities over cash on delivery as this was more convenient and fast. This included online

11
shopping for groceries, especially in metropolitan cities such as Bangalore, Hyderabad,
Mumbai, Delhi, Chennai and Kolkata.
3. Mobile banking applications become common for all banks
Use of smart phones became one of the most common forms of banking. As to provide
consumers with a convenient and secure banking facility, almost every leading bank in the
country, private or public, launched their mobile applications for all the leading Smartphone
operating system platforms i.e. Android, iOS and Windows.
4. Security
Lost cash can be used by anyone. If you lose a credit or debit card, you can call 24.7 helpline
number and report to the bank and thus get protected from unauthorized use of your card.
5. Universal Acceptance
Most credit and debit cards are accepted worldwide. Try that with a personal check! If you
need cash, you can make withdrawals from ATMs or banks around the world that accept your
credit or debit card.
6. Emergency Protection
A credit card will get you through almost any emergency you can think of. It’s like a security
blanket that will cover you for e.g. airline insurance , life insurance etc depending upon the
credit card.
7. Convenience
Credit and debit cards offer no-hassle shopping – no cash, no checks, no additional
identification.
8. Simplified Record Keeping
Credit and debit cards give you a record of all your transactions for the month, so keeping
track of where your money goes is easier.
9. Hygienic
Paper money is dirty and unhygienic as it travels from one person to another whereas on the
other hand plastic money usually remains with 2.3 individuals maximum therefore it is clean
and hygienic.
10. Environment Friendly
One of the major causes of deforestation is paper and this is where plastic money is better
than paper money as it reduces deforestation.
11. Value-Added Benefits
Many credit cards offer rebates, cash refunds, contributions to your favourite charity, or
other special value-added benefits that you won’t get with paying by cash.

1.4 Types of Plastic Money

12
Plastic Money is one of the most evolved forms of financial products. The term ‘Plastic
Money’ is predominantly used in reference to the hard plastic cards we use in place of cash.
Today, transactions done using plastic cards are worth billions of dollar. And the recent
experiment of demonetization has certainly given more impetus to cashless transactions.

1. Debit Card

Debit Card is linked to the bank account of the card holder i.e. the person who owns the card.
They are issued by the bank or financial institutions. Whenever one uses a debit card, an
equivalent amount is deducted from their bank account. It is an ideal substitute for cash. Your
cash sits comfortably in a bank account earning interest (however low that may be) and you
can still access it anywhere, anytime you want (as long as your debit card is accepted).
In India, debit cards are synonymous with ATM Card though later only allows for withdrawal
of cash from ATM. But Debit cards, while can be used for instant withdrawal of cash of
course, their purpose goes far beyond. You can also use it for payment, money transfer (card-
to-card) and checking the balance.
As the card is linked to an account, you can spend only as much as you hold in your account.
You can’t go over that (some account may allow for overdraft facilities).Moreover, the
amount you can withdraw from ATM is always fixed for a day (usually between Rs.40,000 to
Rs.1 lacs).
Types of debit card systems:
 Online Debit System
Online debit cards require electronic authorization of every transaction and the debits are
reflected in the user's account immediately
 Offline Debit System
This type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 2 days to be reflected on user’s account balances.

13
 Electronic Purse Card System
Smart card based electrons purse - systems (in which value is stored on the card chip, not in
an externally recorded account, so that machines accepting the card need no network
connectivity)

2. Credit Card

.A credit card can be viewed as a payment mechanism which enables the holder of the card to
purchase goods (or services) without parting with immediate cash; and make a one-time
payment at the end of a specified period (known as the billing cycle which is usually a
month) with a provision for spreading this payment over several easy instalments.
Again this card will permit the card holder to withdraw cash from an ATM, and a credit card
will allow the user to purchase goods and services directly. but unlike a Cash Card the money
is basically a high interest loan to the card holder, although the card holder can avoid any
interest charges by paying the balance or in full each month.
A credit card is a small plastic card issued to its users as a system of payement. It allows its
holder to buy goods and services based on the holder's promise to pay for these goods and
services. The issuer of the card creates a revolving account and 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.
The Credit Card is built around the revolving credit concept.
The card carries a preset limit for spending which can be utilized by the cardholder during the
specified period. At the end of the month. the holder needs to pay about 5 to 10 percent of the
outstanding value of purchases and liquidate the balance in easy instalments over the next
few months.
The balance outstanding at the end of the month carries a rate of interest of 2 percent to 3
percent per month.
3. Charge Card

14
Charge cards carry all the features of credit cards .The Credit cards evolved from the charge
cards. While most credit cards allow you to carry balance from one billing cycle to next, you
can’t do that with a charge card.
A charge card does not offer you a line of credit as credit cards do i.e. you can’t roll over the
balance as you do on credit cards. So, this means that you will have to pay the full balance at
the end of each month.
If payments are not made promptly, then a penalty fee is levied. Generally, the penalty or
delinquency fee is kept higher for charge cards to prompt timely payments.

4. Master Card

MasterCard is the second-largest payment network, ranked behind Visa in the global
payments industry. MasterCard cards are issued by member banks with the MasterCard logo.
It partners with financial institutions that issue credit cards, and with merchants who accept
those cards.
Payment cards can be credit cards, debit cards, or prepaid cards. Through its merchant
agreements, it sets payment and charge-back policies that affect consumers.
It does not, however, issue cards, set annual fees, determine annual percentage rates on cards
or solicit merchants to accept cards.
5. Photo Card

15
If card holder photograph is imprinted on a card, then card is known as a photo card. This
helps identify the user of the credit card and is therefore considered safer. Examples of Photo
Cards are Aadhar card, PAN card, Voter ID card, etc.

6. In – Store Cards

Stone cards are credit cards which can only be used to buy goods in one particular shop or
chain of shops (a number of shops owned by the same company). The store card is provided
by a particular shop that you can use to buy goods from that shop, and you will pay for the
goods at a later date.
These are used by the departmental stores mainly as marketing tools to retain customers and
increases turnover. These cards are issued by big department stores or retailers and can be
used only in retailers outlet or for purchasing the company's products. In store cards are
usually developed by the traders in partnership with banks or financing companies who
undertake the administration and sometimes the financing involved.
Types on In-store card:
 Budget Card
This card requires monthly payment on behalf of the holders. The cost of goods purchased is
spread over a certain period.

16
 Option Card
Here, payment can be either be made in full or at the cardholders discretion. However, option
available is subject to a minimum payment and interest is charged on the balance outstanding
amount.
 Monthly Card
The card holder is required to make the payment every month. No extension of credit is given
beyond a month. This card differs for budget card, where outstanding budget can be settled in
30monthly statements.
7. Affinity Card

An affinity credit card program allows an organization to offer its members and supporters–
those who have an “affinity” for that organization–a credit card that promotes the
organization’s brand and imagery each time a cardholder uses the card.
When the card is used, a certain percentage is contributed to the organisation /institution by
the card issuer.
8. Add-On Card

17
An Add-On Card allows you to apply for an additional credit card within the overall credit
limit. You can apply for this card in the name of family members like your father/ mother/
spouse/ brother/ sister/ children above 18 years of age.
You are liable to make good all the payments for the purchases made using the add-on
card(s). Your billing statement would reflect the details of purchases made using the add-on
card.
Normally an issuing bank permits two add-on cards per credit card.

9. Cash Card or ATM Card

An ATM card (also known as a bank card, client card, key card, or cash card) is a payment
card provided by a financial institution to its customers which enables the customer to use an
automated teller machine (ATM) for transactions such as: deposits, cash withdrawals,
obtaining account information, and other types of banking transactions, often through
interbank networks.
A card that will allow you to withdraw money directly from your bank via an Automated
Teller Machine (ATM) but it will not allow the holder to purchase anything directly with it
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made
in person only, as they require authentication through a personal identification number or PIN
In other words, ATM cards cannot be used at merchants that only accept credit cards.
In some countries, the two functions of ATM cards and debit cards are combined into a single
card called a debit card or also commonly called a bank card These are able to perform
banking tasks at ATMs and also make point-of-sale transactions, both functions using a PIN.

10. Prepaid cash cards

18
As the name suggest the user will add credit to the card themselves, and will not exceed that
amount. These are usually re-usable in that they can be `topped up’ however some cards,
usually marketed as gift cards are not re-usable and once the credit has been spent they are
disposed off.
They provide some special benefits or discounts to the holder of the card.

Prepaid Cash Card examples:

 DMRC Smart Card.
 Pantaloons Green Card.
 Cards used in Food Courts of Malls.


1.5 Advantages of Plastic Money

1. Difficult to imitate / Security

The most important reason behind the launch of plastic currency note is that it is to prevent
counterfeiting i.e. fake currency. Paper notes are easier to imitate and when in wrong hands
leads to negative impact on economy.
In addition to this, fake paper notes are majorly printed and are in use for funding terrorism,
which has since ages affecting India’s internal security. So basically it would help India’s
economy in the long run.
In comparison, polymer notes have security features which is not possible in paper notes.
These features can be detected by individuals, machines, and authority which issues the
notes. Reproducing polymer notes through photocopy or scanning is very difficult.

2. Long life
Plastic currency notes have longer life typically 5 years. In comparison paper notes may or
may not have longer life unless and until they are preserved or kept unused. You can take

19
example of visiting card made of plastic and paper. Plastic ones are difficult to tear and have
longer life as dirt can be easily removed.
You might have come across a situation when shopkeeper rejects to accept a torn paper
currency note. This will end once plastic money comes to use.

3. Environmental impact
Since plastic note lasts longer, the production cost is reduced and environmental impact is
much lower as paper is saved.

4. Is internationally acceptable
One of the main advantages of plastic money is that the same card can be used locally as well
as internationally. You can get rid of the hassle of converting the cash into the currency of the
country you are planning to travel. If you have an international debit or credit card, you can
make your purchases with that card itself. So the problem of running out of cash will not
happen even if you are abroad and that helps you to have a safe journey without worrying
about the cash and budget.
Sometimes we end up not buying something that we actually like due to insufficient cash but
when you have a credit card with you, you can always purchase it and pay later. Especially
from abroad as it is not practically possible to visit the country again to buy stuff.

5. Convenience of making payments from home

In olden days when there was no plastic money, we need to go personally to each place to
make a payment be it utility payments or booking tickets. But now you can pay at your own
convenience sitting at home with the use of plastic money. For example, you need to go to
the travel agency to pay cash for your ticket, instead, you can book your ticket online. Also
when a travel agency is involved, they charge commission or fee but when you are booking
the ticket directly from the airline's website, you are saving on it. Plastic cards can also be
used for online purchases.
We can see many online shops coming up these days. If you find something interesting on a
website and would want to have it, you can always purchase it anytime using plastic money.
Another advantage is that certain websites do not charge you the service fee if you are
making payment through plastic money as the payment is done upfront. A service fee will be
charged in cash on delivery option. Plastic money can be used 24 * 7 for online purchases.

6. 0% Instalment options
Certain credit cards provide its customers the facility to convert their purchases from selected
outlets to instalment options of 3, 6 or 12 months at 0% interest rate. The customer is given
the option to select the period of instalment which cannot be changed later. If you have

20
selected 6 months instalment plan and paid it off within 5 months, then you will have to pay
an extra fee. Therefore, be careful and pay only according to the instalment period selected.
It is an amazing facility offered by the banks as it helps you to purchase that thing you wish
today and pay in equal instalments within a period of specific time. Will you avail this
facility if you are using cash? A big No is the answer. Therefore, this is indeed an advantage
of plastic money.

7. Tracking transactions becomes easy

Having a track of your daily or monthly transactions is always good. By using the plastic
money you are automatically keeping a track of all your transactions. You can verify it later
if required.
When we are using bank notes, we might forget later for what we spend it, unless you have
the habit of noting down every cash transaction you make. This is not the case with plastic
cards. The banks normally send the statement of debit or credit card to its customers on a
monthly basis which will have the list of all your transactions for that particular month.
This transaction history might help us at times when we misplace a bill. We can show the
transaction details to prove that we have made a purchase. Also, for us to have a check of our
expenses or any particular transaction made in the past, these statements are useful.

8. Provides credit facility

How about having a card that provides you a credit facility? That sounds good right? With
the advent of credit cards you can purchase anything today and you are given sufficient time
to pay for it. Only with plastic money, you avail this credit facility. The advantage of having
this facility is that you need not go behind people to borrow money in case of emergencies,
instead, you can use the card in your hand. Also, you get ample amount of time to repay the
amount.
It is like a best buddy who helps you in case of financial needs. Purchase today and pay later,
isn't that a benefit you are getting? This factor is one of the main reasons why people are
attracted towards credit cards.

9. Cards fit into the wallet easily

It is essential that we need to have some sort of money in hand always as we never know
when a need arises. But carrying a lot of cash in hand is not at all a wise idea. Also, who
would want to carry a lot of cash in hand and make their wallet bulge out. In such situations,
plastic money comes for help. Your wallet will remain perfect and your cash needs will also
be sorted out.
If required you can take cash using plastic cards. Also, it is safe when you have a card with
you as even if it is lost, you can always call the bank and ask them to block it. This avoids

21
misusing the card by any. But when it is cash, you are not left with that option and you will
end up losing your money.
Cards are waterproof hence you don't have to get panicked even if water spilled over your
wallet. They are strong and durable.

1.6 Disadvantages of Plastic Money

1. Plastic Money is also not 100% safe
There is a certain amount of risk involved in transactions which involves plastic money as
well. Especially when doing online shopping. We are exchanging the details relating to our
card over the internet which is not always a safe place. Some websites are just set up to steal
our financial information and loot money thereby.
We should not fall in to such scams and hackers. One should be a smart online shopper in this
world.

2. Minimum purchase requirements

One of the major disadvantages of using plastic money is that one needs to make a minimum
purchase in order to swipe their card.
For instance, if the minimum purchase is Rs. 50.00; and we have purchased items for only
Rs. 40.00, you can't use your card for this transaction unless you purchase for Rs. 50.00. In
this case, you will have to purchase something unnecessary to make it Rs. 50.00. If we had
sufficient cash in hand, we could have avoided spending extra Rs. 10.00.

3. Service charge in certain cases

When we are using plastic money instead of cash, in certain cases the bank charges a service
charge for the purchase of certain items.
For instance, in some countries, the service charge is levied on card transactions when you
purchase gold from jewellery. When paying cash, this additional charge will not be taken.

4. Card too can get damaged

Imagine a situation wherein you have made a purchase and when at the counter you realize
that your card is damaged or when trying to swipe, the transaction is not getting preceded due
to some chip error or damage. You will definitely wish if you had some cash in hand. These
cases occur only when plastic money is used.It might be a rare case but the possibility cannot
be completely ignored.

5. Interest for non-payment

22
A credit card allows you to purchase today and pay for at a later period of time. It gives you a
credit period, but if we fail to make the payment within the due date, interest will be charged.
When we are using cash, we are not taking any credit from the bank, hence non-payment
does not occur.

6. Just Plastic Money won't always help

Plastic money is not a complete replacement for cash. In certain places, we need cash itself.
While buying fish from the market or when paying to the newspaper boy, we need cash itself
as they do not carry POS machine to swipe the plastic money. Similarly, we pay money at
religious places for offerings, there also they do not take plastic money. Unless we have the
facility to use plastic money everywhere, we cannot replace cash completely.
Still, there are small retail shops which do not take plastic money. In villages, hardly we find
any shops that accept plastic money. It makes us necessary to carry some cash always for our
safety.

7. Card theft
A lost card can be misused if you fail to report it immediately and get it blocked.
8. Financial Risk
Plastic money may sometimes encourage impulsive purchases, which ultimately become a
financial burden for us. Excess use of credit cards can even lead to bankruptcy if you are not
careful with your spending.

23
 CHAPTER – 2A RESEARCH METHODOLOGY

2.1 - Objective of Study

2.2 - Limitation of Study
2.3 - Research Design
− Sampling Technique
− Sample Unit
− Sampling Size
− Type of the Questionnaire
− Data Sources
− Primary Data
− Secondary Data

24
2.1 Objective of Study
 To know the perception of consumers towards plastic money.
 To evaluate the drivers and challenges in the adoption of cards by the consumers.
 To examine the satisfaction level of consumers in usage of plastic money.
 To offer suggestions from the findings and conclusion of the study.
 To study the present position and future prospect of plastic money in India.

2.2 Limitations of Study

 Time constrain
 Primary Data has its own limitations which might affect the conclusion of this study.
 Research is limited to Indian Consumers
 Lack of face to face interaction with the respondents and the mentors of the research
project due to pandemic
 Respondents are biased
 Respondents not willing to fill in the questionnaire.

2.3 Research Design

Questionnaire based sample analysis was the base of this study. The sample was believed to
be quite representative of the population, but nonetheless it was a convenience sample which
may be defined as `a form of non-probabilistic sample’ drawn on a purely opportunistic basis
from a readily accessible subgroup of the population. A well framed set of questioned were
circulated through the email to the target personnel. The idea was to probe and get deeper
insights into the various factors influencing credit card usage. Significant factors were
identified and suggestions given for increasing the Plastic Card usage. In order to address the
above mentioned objectives,
A) Study of secondary sources were carried out,
B) Responses of consumers were taken using structured questionnaire.

Sampling Technique
For my survey I used Convenience sampling and Target sampling Technique. I selected a
sample of 100 people around the area and either conducted an online survey or interviewed
them in person according to the questionnaire. In the survey I tried to find out their
perceptions towards using plastic money, the challenges faced by them in adoption of cards
and would they advice their friends or family in using plastic cards. I also tried to find out
that they are satisfied with the quality of service or the present sature of card and did they
want any change in the existing system.
Convenience sampling, where respondents were selected based on as per convenience of the
researcher.

25
Target sampling, where target respondents are identified first such as college graduates,
employees and various distributors and then the interview was done.

Sample Unit
1) Students
2) Professionals
3) Non – working

Sampling Size
100 responses were collected from the sample unit.

Type of the Questionnaire

Structured Questionnaire

Data Sources:
Primary Sources:
This data include both qualitative and quantitative data. Data were generated through
questionnaire as a research instrument.
Research Approach: Survey method.
Research Instrument: Questionnaire.
Types of Questionnaire: Structured.
Type of Questions: Open-ended and Close-ended questions.
Secondary Sources:
The data was collected from journals, internet, reports and publication.

26
 2B - CONCEPTUAL FRAMEWORK

2.1 - Plastic Money System

2.2 - Stages of Evolution of Money
2.3 - The Role of Various Parties Involved in Plastic Card Payment
2.4 - Operation of Plastic Money
2.5 - Plastic Money Frauds
2.6 - Growth prospects of plastic money
2.7 - Future prospects of plastic money
2.8 - Credit card outstanding rising in India
2.9 - Steps Taken by Indian Government to use Plastic Money
2.10 - Plastic money plays a major role in the eradication of corruption in
India.
2.11- Overcoming Challenges
2.12 - How to Secure Plastic Money
2.13 - Reserve Bank of India Pitches for Cashless Society

27
2.1 Plastic Money System
The evolution of plastic money industry was quite obvious as people are getting more
dependent on technology and plastic money business is just the best outcome of technology
in banking business.
The banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors However,
mere technology up gradation or introduction of innovative products cannot improve the state
of affairs until customers don’t respond to it positively. Hence, it becomes very necessary for
the banks to offer the services or products while taking into consideration the customer’s
needs, preferences, perceptions and convenience.
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 credit
cards, debit cards, ATM cards, smart cards, etc. Plastic money are the alternative more
convenient to carry around as you do not have to carry a huge sum of money with you. It is
also much safer to carry it along or to travel with as it is stolen one can consult the bank
whose service you are using and get it blocked hence saving your money from getting stolen
or even lost.
Nowadays even developing countries like India are encouraging the use of plastic money
mere than cash due to this reasons. Furthermore, these debit or credit card also have plastic in
their making and that is where the name `Plastic Money’ has originated from.

2.2 Stages of Evolution of Money

Some of the major stages through which money has evolved are as follows: (i) Commodity
Money (ii) Metallic Money (iii) Paper Money (iv) Credit Money (v) Plastic Money.
Money has evolved through different stages according to the time, place and circumstances.

(i)Commodity Money:
In the earliest period of human civilization, any commodity that was generally demanded and
chosen by common consent was used as money.
Goods like furs, skins, salt, rice, wheat, utensils, weapons etc. were commonly used as
money. Such exchange of goods for goods was known as 'Barter Exchange.

(ii) Metallic Money:

With progress of human civilization, commodity money changed into metallic money. Metals
like gold, silver, copper, etc. were used as they could be easily handled and their quantity can
be easily ascertained. It was the main form of money throughout the major portion of
recorded history.

28
(iii) Paper Money:
It was found inconvenient as well as dangerous to carry gold and silver coins from place to
place. So, invention of paper money marked a very important stage in the development of
money. Paper money is regulated and controlled by Central bank of the country (RBI in
India). At present, a very large part of money consists mainly of currency notes or paper
money issued by the central bank.

(iv) Credit Money:

Emergence of credit money took place almost side by side with that of paper money. People
keep a part of their cash as deposits with banks, which they can withdraw at their
convenience through cheques. The cheque (known as credit money or bank money), itself, is
not money, but it performs the same functions as money.

(v) Plastic Money:

The latest type of money is plastic money in the form of Credit cards and Debit cards. They
aim at removing the need for carrying cash to make transactions.

2.3 The role of various parties involved in plastic cards payment

Customers or Cardholder:
The authorized person holding the card and can use it for purchase of goods and services
also.

1. Card issuing bank:

The bank or financial institution which issues the card to its eligible customers.

2. Merchants:
Entities which sell the goods and services to the cardholder and duly agree to accept the card
for payment.

3. Acquiring Bank:
The Financial institution accepting payement for the product or services on behalf of the
merchant.

29
4. Transaction Network:
The system that implements the mechanics of the electronic transaction. May be operated by
an independent company and one company may operate multiple networks.

5. Affinity Partner:
Some institutions lend their names to an issuer to attract customers that have a strong
relationship with that institution, and get paid a fee or percentage of the balance for each card
issued using their name.

6. Bank Card Association:

The associations (VISA, Master Card, and American Express).

2.4 Operation of Plastic Money

The card cycle works when cardholder buys certain goods at a shop and pays through his
card. The merchant has three copies of the charge slips. One for his own records, one for the
customer (which he signs), and one for his acquirer. The merchant presents the copy of the
charge slip to his acquiring bank. The acquiring bank pays the merchant on the basis of
charge slip, the amount of transaction minus its own commission. The rate of commission is
lesser than the rate of merchants commission.

30
The cardholder has two options on receiving the statement. One is that he can pay the full
amount due on his card on or before the due date, in which case, he is said to using his card
as a charge card rather than a debit card since he is not utilising the card facility on his card.
The second option is that he pays the minimum amount due (MAD) before the due date, or
any percentage greater than the MAD but lesser than the total amount due and `roll over’ or
carry over the balance amount to the next month for a small finance amount charge.
The small fiancé charges generally vary between 1.5% - 3% months. In USA there is a la
which prohibits issuers from charging finance charges 4% or more per month, unfortunately
there is no such law in existence in India at the moment.
Of course, if cardholder fails to pay even the MAD, he has to pay a service charge or fixed
finance charge (depending on the rules of the issuer) plus the interest charges.
In certain cases where the acquirer and the issuer are the same, the cycle has three player
instead of four. In this case the issuer makes a little more profit than with the presence of an
acquirer in the cycle, since he does not have to pay the commission to the acquirer. When
translated over a transaction per day, this means a lot of saving of the issuer. Thus there are
many who are vigorously pursuing the business of acquiring too.

2.5 Plastic Money Frauds

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 and some common schemes involving fraud
with tips to help you avoid them.

The following are the type of frauds :

 Stolen Cards at the office.

 Extra Copies of Charge Slips.
 Discarded Charge Slips.
 Unsigned Credit Cards.
 Loss of Multiple Cards.
 Strange request for your PIN Numbers.
 Legitimate Cards.
 Altered Cards.
 Counterfeit Cards.

2.6 Growth prospects of plastic money

Growing popularity of online shopping made increase usage of plastic cards more than
previous years. It was primarily driven by the urban population and by the increased

31
acceptance of cards by organised retailers. There was a strong usage in both grocery and non-
grocery retailing.

The use of plastic cards in India has rise from last few years but there is still a great potential
left for the bankers to introduce more attractive services in order to lure the customers on one
side and increase their profits on the other.

2.7 Future Prospects of plastic money

Smooth, simple and secure payment processes will help bring about behavioural changes and
faster adoption of digital payments and banking among un-banked segments. When new
players enter the market, each with a slightly different take on the market and with differing
business models, the increased competition will help the environment and offer more options
for consumers to choose from. A larger pie with more players is definitely good for the
changing dynamics of the payments industry, which is still nascent in India. Indian
consumption is still dominated by cash, with cards contributing only 5 per cent of the
personal consumption expenditure. In developed countries, 30-50 per cent of spends happen
through cards. So there is huge growth opportunity. The rapid growth of smartphones,
Internet penetration and e-commerce is complementing these; card payment volumes have
been growing in excess of 25 per cent. “We expect this trend to continue, aided by the
continued increase in debit card activation and usage; debit card transactions have been
growing at 31 per cent each year. Intense competition and strategic collaboration among
existing and new market participants like the payments and small banks and wallets will help
scale up acceptance and foster more creativity, innovation and consumer choice. According
to him, the future holds exciting times for the payments industry in India, as all stakeholders
and regulatory authorities come together to achieve a “less-cash dependent” and eventually
“cashless” society. The credit card industry in India sees greater acceptance among
consumers this year. According to Worldline India Card Payment Report 2014-15, the credit
card base grew at 9.8 per cent in the past year. Worldline India is a leader in the payment and
transactions services in the country. Alternative methods like mobile wallets and prepaid cash

32
cards accounted for 3 per cent of digital transactions. This industry has been growing steadily
over the past few years. Card transactions, both by debit and credit cards, are on an upward
trajectory. There are interesting dynamics at play in the Indian payments industry.

2.8 Credit card outstanding rising in India

The outstanding on plastic cards has risen by more than 50 per cent to Rs19,345 crores as on
February 15, 2008 according to the RBI. The credit card industry in India is still nascent
according to VISA. Indians make just 1 per cent of their total purchases by credit cards
against 20 percent by Koreans. The global average is around 9 per cent. The Indian Credit
Card market it touched 55 million cards by 2010-2011.
Indian credit card user base grows 30% YoY: India had just 3.5 million credit cards in 2000.
As of March-2006, the number has swelled to 19 million by January 2007 there were 22
million credit cards in India at the end of April-March 2007-06, all together held about 28
million credits cards and Indian had already transacted Rs 56,845 crores through these cards
in the year. It represents the average growth of 30 per cent yearly. Not just the number of
users have increased, but also the average spending has gone up from $368 (Rs.14.560) in
2000 to $437 Rs 1665) in 2006 and in 2007-08 to Rs 56,84 crores.

2.9 Steps Taken by Indian Government to Use Plastic Money

The Digital India programme is a flagship programme of the Government of India with a
vision to transform India into a digitally empowered society and knowledge economy.
“Faceless, Paperless, Cashless” is one of professed role of Digital India. As part of promoting
cashless transactions and converting India into less-cash society, various modes of digital
payments are available. Prime Minister Narendra Modi's master plan to handle the after-
effects of the demonetisation is much like an onion -- many-layered and occasionally tear-
inducing. From choking the parallel economy to pushing cashless transactions, the move has
created ripples that will not die down anytime soon. After demonetisation, there has been a
surge in the digital transactions through use of credit/debit cards and mobile phone
applications/e-wallets etc. To further accelerate this process, the Central Government has
announced a package of incentives and measures for promotion of digital and cashless
economy in the country.
According to a release by Ministry of Finance, the incentives/measures are as following:
1. The Central Government Petroleum PSUs shall give incentive by offering a discount at
the rate of 0.75% of the sale price to consumers on purchase of petrol/diesel if payment is
made through digital means. Nearly 4.5 crore customers buy petrol or diesel at such petrol
pumps per day who can take benefit of this incentive scheme.
2. To expand digital payment infrastructure in rural areas, the Central Government through
NABARD will extend financial support to eligible banks for deployment of 2 POS
devices each in 1 Lakh villages with population of less than 10,000. These POS machines
are intended to be deployed at primary cooperative societies/milk societies/agricultural
input dealers to facilitate Agri-related transactions through digital means. This will

33
 benefit farmers of one lakh village covering a total population of nearly 75 crore who will
have facility to transact cashless in their villages for their Agri needs.

3. The Central Government through NABARD will also support Rural Regional Banks and
Cooperative Banks to issue “Rupay Kisan Cards” to 4.32 crore Kisan Credit Card holders
to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.

4. Railway through its sub-urban railway network shall provide incentive by way of
discount upto 0.5% to customers for monthly or seasonal tickets from January 1, 2017, if
payment is made through digital means. Nearly, 80 lakh passengers use seasonal or
monthly ticket on sub-urban railways, largely in cash, spending worth nearly Rs.2,000
crore per year. As more and more passengers will shift to digital means the cash
requirement may get reduced by Rs.1,000 crore per year in near future.

5. All railway passengers buying online ticket shall be given free accidental insurance cover
of up to Rs. 10 lakhs. Nearly, 14 lakh railway passengers are buying tickets everyday out
of which 58% tickets are bought online through digital means. It is expected that another
20% passengers may shift to digital payment methods of buying railway tickets. Hence
nearly 11 lakh passengers per day will be covered under the accidental insurance scheme.

6. For paid services e.g., catering, accommodation, retiring rooms etc. being offered by
railways through its affiliated entities/corporations to the passengers, it will provide a
discount of 5% for payment of these services through digital means. All the passengers
travelling on railways availing these services may avail the benefit.

7. Public sector insurance companies will provide incentive, by way of discount or credit, up
to 10% of the premium in general insurance policies and 8% in new life policies of Life
Insurance Corporation sold through the customer portals, in case payment is made
through digital means.

8. The Central Government Departments and Central Public Sector Undertakings will
ensure that transactions fee/MDR charges associated with payment through digital means
shall not be passed on to the consumers and all such expenses shall be borne by them.
State Governments are being advised that the State Governments and its organizations
should also consider to absorb the transaction fee/MDR charges related to digital payment
to them and consumer should not be asked to bear it.

9. Public sector banks are advised that merchant should not be required to pay more than Rs.
100 per month as monthly rental for POS terminals/Micro ATMs/mobile POS from the
merchants to bring small merchant on board the digital payment eco system. Nearly 6.5
lakh machines by Public Sector Banks have been issued to merchants who will be
benefitted by the lower rentals and promote digital transactions. With lower rentals, more
merchants will install such machines and promote digital transactions.

34
10. No service tax will be charged on digital transaction charges/MDR for transactions up to
Rs.2000 per transaction. XI. For the payment of toll at Toll Plazas on National Highways
using RFID card/Fast Tags, a discount of 10% is given from the year 2016.

2.10 Plastic money plays a major role in the eradication of corruption in

India.
1. These are the reasons that how it is possible:-
2. Every money transfer or transaction is maintained and recorded and also the transactions
of crores and crores of money cannot go unrecorded. Each official can have only that
much of amount that he earns or has saved through his or her earnings.
3. None of the money transactions are illegal. As,all the money transfer and transaction
happens through bank accounts, none of the illegal money can be transferred.
4. All the conversions of the Indian currency into dollars or swiss dollars are recorded and
also their amount is recorded if a lot of money is converted.
5. The number of fraudulent money practises are reduced as no fake paper notes can be
printed as they are not usable.
6. All the transactions will be recorded and also payments made in this manner are billed out
in order to maintain a proof of the transaction made. Hence this will eradicate the problem
of lack of evidence when it comes to transactions made. Many a times, we do not take a
cash memo from the shopkeeper although it is the only record or proof that says that we
have purchased an item from that shop.
7. Thumb scanning facility can be incorporated with plastic money usage so that the safety is
insured and people get assured to use plastic cards.

2.11Overcoming Challenges
The government and other responsible authorities have to ensure more widespread
availability of Pos machines. Basic cyber safety training and tips should be provided and card
holders have to be sensitized about the sensitive nature of bank card information. Making
linking of phone numbers to accounts should be made mandatory for easy and timely SMS
alert facility. Linking of Aadhaar cards to bank accounts is a way to ensure authenticity of
account and card holders. The most important step to be taken is provision of infrastructural
facilities like technical knowledge and internet facilities to all the people in order to widen
the coverage of plastic money in the country.

2.12 How to secure plastic money

As the government promotes cashless transactions and more people start paying with their
cards at point of sales terminals, bankers as well as payment companies say that Indians need
to be more careful about the security features of plastic cards and learn more about how they
can protect their accounts from external fraudulent attacks.
1. Saving card

35
Banks always advise customers to not save their 16 digit card number with multiple payment
gateways as the number may get stolen from a compromised gateway and pose a security risk
during any transaction.
2. Small 3-digit code behind plastic cards
The code is known as the CVV number.
CVV stands for Card Verification Value or CSC (Card Security Code) this is the three digit
number usually mentioned at the back of a MasterCard or a Visa card. It is an added security
feature for card users who stand protected from fraudulent transactions even if their 16-digit
card number is stolen
For instance for card absent transactions like on line payments it is mandatory to put the CVV
number which proves that the right bank customer is using it.
3. Decoding the card number
The 16-digit card number is extremely vital as it helps identify the card service provider. For
Visa the starting number is 4, for MasterCard it is 5 and for American Express it is either 34
or 37. For Discover cards it is 6, for other petroleum cards it is 7 and for airline cards it is 1.
It also helps identify the bank which issued the card and contains a unique number to identify
the customer. Hence, customers are advised against sharing the 16 digit number
4. Expiry date
Most debit and credit cards come with expiry dates requiring one to renew the card every few
years. Once a fresh card is issued by name, the delivery address and KYC details are
refreshed again, updating the bank's database and also preventing fraudulent use.

5. Magnetic Stripe
Magnetic stripe is the black colour strip at the back of the card.The older range of cards
needed to be swiped on a point of sales (PoS) terminal. The magnetic stripe which needed to
be swiped contains data around the card number which helps the merchant identify the
customer, card service provider and bank. Magnetic stripe can be easily duplicated by a
cloning machine inserted in a compromised PoS terminal, as was seen in the case of Target, a
massive retail chain of the US where customer's bank details were stolen through a
compromised PoS machine.
6. Chip and pin
In order to avoid such cases of compromise the RBI has in structed all banks to move to chip
and pin based cards and not to issue magnetic stripe cards. In this case, a smart chip is
inserted into the card which creates a unique token every time the card is used at a PoS
terminal or for online transactions. This is a far higher level of security than magnetic stripe
since even if in some instance the card is compromised the data stolen will be virtually
unchanged for all transactions.

2.13 RESERVE BANK OF INDIA PITCHES FOR CASHLESS SOCIETY

36
With the Indian economy expanding rapidly at more than 7.5% per annum and the middle-
class budding, several financial firms believe and predict that the use of plastic money in
India will become very popular. However, according to the recent estimates by the Reserve
Bank of India (RBI), the use of cashless transactions through credit card usage among Indians
is actually falling. The Reserve Bank of India (RBI) has prepared a road map to provide card
swipe machines to more than one crore retail businesses in the next three years to promote
electronic transactions for ushering in a less-cash society in the country. According to the
road map prepared by the central bank for cash-less transactions, all schools and colleges in
the country will also be equipped to handle plastic transactions. According to an RBI
estimate, only six lakh retail traders accept credit card in the country. Steps are being taken to
make the facility available to at least one crore retailers by 2015.The government and its
financial institutions will initially bear the cost of each card swap machine made available to
retailers.

37
 CHAPTER 3 – REVIEW OF LITERATURE

A review of theoretical and empirical literature pertaining to the topic of the study is an
integral part of any research work. Hence, an attempt has been made in this chapter to present
a review of various studies relating to `Plastic Money‘, as reported by experts, professionals
and researchers at national and international level.

Joshi (1996), “Variants in plastic”.

The Author analysis that card issuers seeks to introduce the emerging payment card
technology like debit and smart cards. Credit cards are being gradually revolutionised by
various factors introduction of customers friendly technology, a competitive marketing
environment, the rise of the financially sophisticated consumer who avoids paying interest
and the emergence of new competitors. The concept of debit cards as a new emerging
payment system has gained acceptance in the Asia-Pacific region in past few years. Being a
new concept, mass acceptance is gradual and not instantaneous It shows that spending on
credit cards is higher than debit cards but the number of transactions are more on debit cards.
There are technological and infrastructure hurdles for debit cards as it is significantly
different from credit cards. For this system should be on line and the investments in
technology are huge. Study shows that profit margins in debit cards are one-third than those
from credit cards. Author believes that India by virtue of a late starter in the card industry is
at an advantage as it can except to shorten its learning curve by utilizing global experience
and expertise in electronic payment system.

Radhakrishan (1996), "Debit Cards".

The study 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.

Puri, Vishal (l997), “Smart cards - The smart way for the banks to go”.
The study examined the many innovative smart card applications covering areas such as
telecommunications. transport, banking, health care and employee/membership schemes. lt
looked at how the banks, financial services firms , information companies and card issuers are
gradually reconceptualising their delivery strategy as well as their businesses to meet the
growing need for remote delivery, brand equity and differentiation. Smart cards could act as
payment vehicles, access keys, information managers, marketing tools and customized

38
delivery systems. It also explored the possibilities of an electronic purse ranging from a
possible stored value and to a re- loadable stored value card, which could literally replace
low-value cash transactions. Smart cards would then become integral to the bank‘s concept of
remote delivery system in the future, because smart cards are not just a product; they are a
new delivery system. Besides, the paper" focused on some of the issues that might be of
deeper concern to banks and suggests collaboration between banks and providers in the mass
introduction of smart cards.

Gambir (1998), "Credit cards in India".

He describes that credit cards are relatively new to India. Treated as a status symbol and as a
vehicle of consumerism Indian banks burst this business. Till recently as it did not go along
very well with the spirit of people because they do not have much money to spend because of
bad economic conditions. But with increasing economic and financial liberalization and
growing prosperity of the urban middle class banks fells that it is desirable to enter into this
line of business Author feels that Credit Cards and money transfers with latest technological
changes would definitely reduce the burden on cash in our system. Therefore RBI has to give
an impetus to the popularity of plastic money which is consistent with present policy of
economic and monetary liberalization.

Soman and Cheema (2002), “The effect of Credit on spending decisions: The role of
Credit limit and Credibility”.
The objective of the present research is to study consumer decisions to utilize a line of credit.
If consumers have access to large amounts of credit, they are likely to infer that their lifetime
income will be high and hence their willingness to use credit (and their spending) will also be
high. Conversely, consumers who are granted lower amounts of credit are likely to infer that
their lifetime income will be low and hence their spending will be lower. However, as
consumers gain experience with credit, they start discounting credit availability as a predictor
of their future and start questioning the validity of the process used to set the credit limit.
Hence, with experience the effect of credit limit on the willingness to use credit should be
attenuated. The propensity to spend increases as a function of the credit limit, especially, as
credit limit increases, subject using a credit card report a higher likelihood of making a
purchase, other things remaining constant. When a consumer once has a credit card and a
credit line available, sometimes unnecessary spending gets unavoidable.

Chakravorti (2003), “Theory of credit card networks: A survey of the education and
ethnicity literature".
The study shows that credit card provide benefits to customers and merchants not provided
by other payment instruments as evidenced by their explosive growth in the number and
value of transactions over the last 20 years. Recently, credit card networks have come under
scrutiny from regulators and antitrust authorities around the world. The cost and benefits of
credit cards to network participants are discussed Focusing on interrelated bilateral

39
transactions several theoretical models, have been constructed to study the implications of
several business practices of credit cards networks.

Gupta (2003) "Legal and regulatory framework of credit cards”

The study asserts that the regulations of credit card business in India is diffused and need to
be streamlined. Whereas in developed countries the law on credit card business in
comprehensive and straight forward, its Indian version requires a structural change. Hence
there is a need to explore that various legislative premises of the inferior and unclear Indian
version for protection of interest of cardholders and healthy growth of the industry.

Saha (2003), “The booming credit card business of Indian banker”.

In this study analysis has been done of the credit card business in India Article is both from
the banker point of view and from the users point of view. It is estimated that the credit card
volume is increasing around 15% pa on average for last 10 years and volume of transaction
increased by 20% on an average in last 10 years in India Various hypothesis and objectives
are set to find out which bank offer varieties of services to consumer in relation to credit card.
A comparative analysis is made for all the credit cards. In general, most of the credit card is
doing very well and the competition is cut throat. Different factors such as income level, fees
customer’s service network, add on card facility, revolving credit facility insurance facilites,
cash withdrawal charges, lost card liabilities, etc taken into account for selecting the best
credit card provider in country The study also finds that city bank is the best card which
provides all the facilities at the minimal charges..

Bandyopadhyay (2004), "Credit cards look for an Ace”.

The article put the light on various issues like, major care players are issuing cards without
much checking credentials. It adds to non performing assets [NPA] levels in its portfolio but
overall about 0.6 percent of personal consumption expenditure in India is through credit
cards. He suggested that the increasing card use could be by making all utility payments
through cards by installing more electronic draft capture (i) the government can do by
waiving the tax on credit cards which is a big disincentive for card users (ii) to bring down
the default rate, bank must set up credit bureau This will enable banks to detect the first sign
of default in advance and sound a red alert so that prospective defaulters can be weeded out.

Jagdeesh (2005), “Credit card fraud: causes and cures from professional s perspective”.
The study put a light on credit card fraud which is increasing worldwide. The culprit is not
only the outsiders but insider fraudsters who cheat their organization to make quick buck.
Bank credit card issuers lose about $1.5 to $ 2 billion every year because of fraud. The VISA
and the Master Card, the two largest credit card issuers lose most. Major credit card frauds
like unauthorized use of credit cards, on line frauds, shave and paste of card, counterfeiting.
mail order fraud are the techniques used by the fraudster. The author also discusses the tips

40
for prevention of frauds like using smart cards, computer edits, PIN numbers, and suggests
that it is in their own interest that the cardholders should keep their cards safely and use the
cards wisely to protect themselves from frauds.

Rangaswamy and Ramesh Kumar S. (2007), "Plastic money in retail distribution”.

The Article highlighted the growth of plastic money particularly ATM cum debit cards, its
importance in retail distributions, cost effects, benefits, suggest some tips to avoid frauds and
necessity of increasing its usage.

Annamalai, S. and Muthu R. liakkuvan (2008), "Retail transaction: Future bright for
plastic money”.
The article projected the growth of debit and credit cards in the retail transactions. They also
mentioned the growth factors, which leads to its popularity, important constraints faced by
banks and summarized with bright future and scope of plastic money.

Nayak, Tapan Kumar and Manish Agarwal (2008), “Consumer's behavior in selecting
credit cards".
The research paper discussed about the factors influencing the selection of credit cards
among consumers. The major factors points out by them are service offers, promotional
offers, interest benefits, cash benefits, ease of payments, payment charges, card benefits and
time benefit.

Sarangapani, A. and T. Mamatha (2008), “The growing prominence of debit cards and
credit cards in the Indian banking industry”.
The article highlighted the growing prominence of debit and credit cards by giving necessary
statistics, comparative features of both cards and also pointed out more popularity of debit
cards than credit cards.

Mandeep Kaur and Kamalpreet Kaur (2008), “Development of Plastic Cards Market:
Past, Present and Future Scenario in Indian Banks”
The study concluded that Indian banking sector is accepting the challenge of information
technology as all the groups of bankers have now recognized it as essential requirement for
their survival and growth in future Despite the strong advances in e-payments, an estimated
90 percent of personal consumption expenditure in India is still made with cash which
indicates the tremendous growth potential of this business. So this can be considered as mere
beginning which indicates the bright future prospects of plastic card market in India.

41
Subhani (2011), “Plastic Money/Credit Cards Charisma for Now and Then”.
The study was based to find out the charisma of plastic money, its usability and affordability
and its impact on its preference to use. The research found that the preference to use of plastic
money/ credit card has its pros and cons with its usability and affordability. According to the
consumer behavior, plastic money is a form of conditioning and acts as a stimulus which
qualifies a consumer to spend. The study shows that the preference to go for plastic money
has a positive association with the easy use of plastic money because the precept of credit
card usability is linked with a psychological phenomena that people are likely to spend less
with credit card and spend more with the same amount of cash on hand in the same budget
and this precept also linked with the consumer self convenience, i.e. convenience and easy
use which delves into spending.

Khurana Sunaina Singh, S. P. ( 2011), “Identify customer preferences and expectations

from credit/debit card services”.
In today's busy world, nobody has the time to withdraw money from the bank account for
shopping. Everybody is interested in carrying the plastic money (credit card and debit card)
in their wallet for shopping as it gives convenience, safety, easiness and even style. In this cut
throat competition, banks have to work hard to gain market share and to meet the
expectations of customers so that they can delight their customers. The main objective is to
identify the factors that influence the choice of credit cards, customer satisfaction, and
consumer behavior regarding the credit card in Tier-III cities. Primary data was collected
from 200 16 respondents by the questionnaire method. Results show that the choice of credit
card depends upon income, gender and profession of the respondent. Customer satisfaction
depends upon income, frequency of usage in a month and amount of usage per month.

Dwarkadas (2011), “Consumer’s perspective towards credit card”.

The study explains socio - economic variables like age, educational qualification, area, etc
also affects the usage of plastic money in the country. The study states that males are majorly
using credit cards as compared to females. The major reason behind it is the lack of
awareness among them. It was found in the study that the card division of the various banks
should try to adopt new innovative strategies in marketing assessment of customer's needs
and expectations for promoting customer's satisfaction. According to the study cardholder of
the private banks are satisfied with the services.

Sudhagar (2011).
The study observed that from the analysis of banks customers awareness about credit cards
that KICE credit cards are more popular which is followed by SBI and HDFC card.
Regarding the source of integration about credit cards the respondants revealed that the
agents of ICICI bank were the source of information about ICICI card. In the case for SBI
card, advertisements provided th necessary knowledge & for HDFC cards, the bank was the
source of necessary information for the customers. Thus, the analysis revealed that

42
respondents considered basic benefits, facilitating services and supporting services prior to
purchase of credit cards. However, facilitating services were low consideration.

Sachin Kumar, Hindustan times, Mumbai, (August 15, 2011).

The spending through credit cards rose by 30% year-on-year to Rs22,128 crore during the
April-June quarter of 2011-12 against Rs16,948 crore last year, according to data released by
the Reserve Bank of India (RBI). Spending through debit or ATM cards, increased by 45%
year-on-year to Rs11,691 the April-June quarter compared to Rs8,065 crore last year. “It’s a
natural progression for country like India, which is growing rapidly and more people availing
banking facilities,” said Anand Selvakesari, country business manager, global consumer
group, Citibank. “However, there is still much potential left as penetration of plastic money
in India is less than countries such as the US and China.” However, bankers are likely to be
cautious in selecting their customers for credit cards due to the uncertainty in the global
economy. “We will continue expanding our cards base in India, but will select customers
cautiously,” said Selvakesari.

Bansi Patel and Urvi Amin (2012), “Plastic Money : Roadmay towards Cashless
Society”.
The study discussed that now a days in any transaction Plastic money becomes inevitable part
of the transaction and with it life becomes more easy and development would take better
place and along with the plastic money it becomes possible that control the money laundry
and effective utilization of financial system would become possible which would also helpful
for tax legislation.

Anupama Sharma (2012), "Plastic card frauds and the countermeasures towards a
safer payment mechanism”
The research paper have thrown light on the number of frauds increased considerably in the
usage of plastic cards as in case of plastic card frauds the most affected parties are the
merchants of goods and services as they have to bear the full liability for losses due to frauds,
the banks also bears some cost especially the indirect cost whereas the cardholders are least
affected because of limited consumer liability and concluded that all these losses can be dealt
with by making the prudent use of the new technology and taking the respective counter
measures.

P Manivannan (2013), “Plastic Money a way for cash Less Payment System”
The study examined that Plastic Money i.e. usage of Credit card was measured a luxury, and
has become needed. These plastic money and electronic payments was and used by only
higher income group. This facility extended not only to customers in urban areas or cities, but
also to customers residing in rural area. However, today, with development of banking and

43
trading activity, the fixed income group or salaried classes are also start using the plastic
money and electronic payment systems and particularly Credit cards.

Vimala V. and Dr. Sarala K.S. , (2013).

The study stressed on the Usage and perception of plastic money among the customers of
BOI, with emphasis of the awareness level, perception and usage of new innovative services
in regards to plastic money.

Tabrez Haq and Bushra Malik (2014), “Consumer response towards the usage of plastic
money”
The study emphasis on increase of shift of plastic money in India by consumers from Credit
cards to Debit cards. The distribution of plastic money has increased due to the fact that
banking sector has become more aggressive. Moreover, duplication of users is an important
area of concern for the industry which can exaggerate the number of active users. The present
paper makes an attempt to understand the after effects of recession on plastic money industry
and its impact on consumer preferences. The paper duly investigates the acceptability of the
cards among the Indian consumer and the factors influencing the card choice.

Sharma et al. (2015).

Sharma et al. conducted the study to find out the evaluation of consumer perception and
attitude towards the usage of plastic money in India The research is conducted by using
secondary data which includes questionnaire of 250 respondents. The research is conducted
in New Delhi. The research finds that most of the population wants to use plastic money in
place of hard cash or paper money as they can make payments instantly with plastic money,
easy to use and it is portable and flexible.

Anisha Bisht, Praveen Nair , Rakshita Dubey, Tanu Hajela (2015): “Analysis of the use
of Plastic Money: A Boon or a Bane”.
Keeping in mind the changing technology replacing the traditional concept of paying not
through cash but by plastic money (credit and debit cards), this research was undertaken to
study the awareness and use of plastic money among the consumers. The sample was selected
by the Stratified Random Sampling Method and consisted of consumers including students,
working professionals, government officials, house makers and senior citizens. The sample
size selected was 200. It was found that consumers prefer plastic money over paper money
and the major benefit that the card provides to the customers is the convenience and
accessibility. The major problem according to them is the increased transactional costs and
unnecessary formalities to procure the cards from the financial institutions. They felt that the
future of plastic money is bright and according to them, the next thing to come via
technology would be the use of digital signatures.

44
 CHAPTER 4 – DATA ANALYSIS AND INTERPRETATION
& PRESENTATION OF DATA

4.1 PIE CHART 1

INERPRETATION
 56% of the respondents are Male
 44% of the respondents are Female

45
4.2 PIE CHART 2

INERPRETATION
 10% of the respondents are of the age group below 18
 47% of the respondents are of the age group 18-30
 30% of the respondents are of the age group 31-50
 7% of the respondents are of the age group 50 and above

46
4.3 PIE CHART 3

INERPRETATION
 47% of the respondents are students
 44% of the respondents are working
 9% of the respondents are homemakers

47
4.4 PIE CHART 4

INERPRETATION
 18% of the respondents have annual income below 100,000
 27% of the respondents have annual income between 100,000 – 300,000
 18% of the respondents have annual income between 300,000 – 500,000
 5% of the respondents have annual income above 500,000
 32% of the respondents are non-working

48
4.5 PIE CHART 5

INERPRETATION
 64% of the respondents are aware of both debit and credit card
 17% of the respondents are aware of debit card
 8% of the respondents are aware of credit card
 9% of the respondents are aware of specific outlet cards
 2% of the respondents are aware of other cards like ATM card

49
4.6 PIE CHART 6

INERPRETATION
 34% of the respondents use debit card
 10% of the respondents use credit card
 35% of the respondents use both debit and credit card
 15% of the respondents use specific outlet cards
 6% of the respondents prefer to use other cards or no card

50
4.7 PIE CHART 7

INERPRETATION
 46% of the respondents prefer to pay by using debit card
 15% of the respondents prefer to pay by using credit card
 38% of the respondents prefer to pay by using cash
 1% of the respondents prefer to pay by using other cards

51
4.8 PIE CHART 8

INERPRETATION
 12% of the respondents use plastic money daily
 21% of the respondents use plastic money once in a week
 33% of the respondents use plastic money once in a month
 33% of the respondents use plastic money few times a year
 1% of the respondents do not use plastic money

52
4.9 PIE CHART 9

INERPRETATION
 54% of the respondents use plastic money for making online payments
 29% of the respondents use plastic money for withdrawing cash
 16% of the respondents use plastic money for purchasing accessories
 1% of the respondents use plastic money for other payments

53
4.10 PIE CHART 10

INERPRETATION
 50% of the respondents do not use plastic money due to card frauds
 29% of the respondents do not use plastic money due to inadequate services
 19% of the respondents do not use plastic money due to lack of transparency
 2% of the respondents do not use plastic money due to other reasons such as high risk

54
4.11 PIE CHART 11

INERPRETATION
 20% of the respondents agree cash is the most convenient way to pay
 46% of the respondents agree card is the most convenient way to pay
 8% of the respondents agree cheque is the most convenient way to pay
 26% of the respondents agree digital payment is the most convenient way to pay

55
4.12 PIE CHART 12

INERPRETATION
 47% of the respondents agree to the point
 19% of the respondents strongly agree to the point
 19% of the respondents neither agree nor disagree to the point
 13% of the respondents disagree to the point
 2% of the respondents strongly disagree to the point

56
4.13 PIE CHART 13

INERPRETATION
 51% of the respondents agree to the point
 17% of the respondents strongly agree to the point
 23% of the respondents neither agree nor disagree to the point
 8% of the respondents disagree to the point
 1% of the respondents strongly disagree to the point

57
4.14 PIE CHART 14

INERPRETATION
 53% of the respondents agree to the point
 20% of the respondents strongly agree to the point
 13% of the respondents neither agree nor disagree to the point
 11% of the respondents disagree to the point
 3% of the respondents strongly disagree to the point

58
4.15 PIE CHART 15

INERPRETATION
 53% of the respondents agree to the point
 20% of the respondents strongly agree to the point
 13% of the respondents neither agree nor disagree to the point
 11% of the respondents disagree to the point
 3% of the respondents strongly disagree to the point

59
4.16 PIE CHART 16

INERPRETATION
 41% of the respondents agree to the point
 17% of the respondents strongly agree to the point
 24% of the respondents neither agree nor disagree to the point
 11% of the respondents disagree to the point
 7% of the respondents strongly disagree to the point

60
4.17 PIE CHART 17

INERPRETATION
 45% of the respondents agree to the point
 12% of the respondents strongly agree to the point
 18% of the respondents neither agree nor disagree to the point
 15% of the respondents disagree to the point
 10% of the respondents strongly disagree to the point

61
4.18 PIE CHART 18

INERPRETATION
 According to 54% of the respondents plastic money is the safest mode of transaction
 According to 17% of the respondents plastic money is not the safest mode of transaction
 According to 29% of the respondents maybe the safest mode of transaction

62
4.19 PIE CHART 19

INERPRETATION
 According to 44% of the respondents plastic money is less risky
 According to 40% of the respondents plastic money is moderately risky
 According to 14% of the respondents plastic money is highly risky
 According to 2% of the respondents plastic money is very highly risky

63
4.20 PIE CHART 20

INERPRETATION
 45% of the respondents have knowledge about the card network
 31% of the respondents do not have knowledge about the card network
 24% of the respondents maybe have knowledge about the card network

64
 CHAPTER 5 – CONCLUSION

Looking at the broad scenario, there is no doubt that the plastic money is rising up in the
market. The day will come when all the transaction will be done through plastic money, yet
there are more further technologies which have been implemented in Japan and US but India
is still growing in its first phase.
The day will come when all the train tickets would be purchased by credit cards. People will
start keeping bunch of cards in their pockets instead of currencies. The day will come when
the cinema tickets will be purchased through credit cards. Thus in these growing phenomenon
there doesn’t seems any declination instead it growing at a higher rate. Consumers are
preferring these cards mostly for shopping online Ecommerce has given a better way to use
the plastic money. It can be concluded that plastic money has a very bright future in the
coming years because of the increasing trend of ecommerce.
21st Century banking has become wholly customer-driven & technology driven by
challenges of competition, rising customer expectations & shrinking margins, banks have
been using technology to reduce cost & enhance efficiency, productivity & customer
convenience. Technology intensive delivery channels like net banking, mobile banking, etc
have created a win-win situation by extending great convenience and multiple options for
customer. From educating customers about credit cards there is a need to educate them about
the differentiating factors of the cards. Because visa and master card are advertising regularly
and thereby increases awareness. The strategy should be to emphasize on its differentiating
characteristics. They also need to identify potential customers and target those using mailers.
As internet is growing at a fast rate the net users can be targeted by having interactive sites.
The prospective company’s card personality could also be used in the home page to solve
customer queries in the ‘Best Possible Manner’.

65
 CHAPTER 5.1 – RECOMMENDATIONS AND
SUGGESTIONS

1. All the transactions should be recorded and also payments made in this manner should
be billed out in order to maintain a proof of the transaction made. Hence , his will
eradicate the problem of lack of evidence when it comes to transactions made. Many a
times, people do not take a cash memo from the shopkeeper although it is the only
record or proof that says that they have purchased an item from that shop.

2. It is found from the study that some people find plastic money to be highly risky.
Safety in the Plastic money is an important factor that induces its usage. Multiple
level of security should be insured like Password, OTP (One time password ), use of
Shttp (secured sites)instead of http etc.

3. According to the study majority of the people use only use debit and credit cards. It is
necessary to educate people more about the different types of cards, so that they can
avail the benefits of different cards to their fullest.

4. Thumb scanning facility should be incorporated with plastic money usage so that the
safety is insured and people get assured to use plastic cards.

5. People should be motivated to make more use of Plastic cards while travelling. Travel
Companies can give discounts to lure the customers to make the use of Plastic cards.

6. It was found that people find cards as a convenient way of payment. Gone are the
days which required people to carry huge amount of cash to make their payments.
With the P.M. Mr. Narendra Modi’s emphasis oncashless transactions in banks,
departmental stores, grocery outlets, apparel stores etc, now the people are adapting to
this new way of transaction.

7. Transaction charges on online transactions should be waived off to induce the people
to use Plastic cards more.

8. Rampant usage of credit cards should be avoided since it leads to an endless cycle
where the users maximize their credit card and get another one because they are
unable to pay for the previous one, and they finally fall into debt.

66
 9. Reduction in Cashless transactions will also lead to the restriction of the influx of
Duplicate money from abroad. Safety measures pertaining to the fund transfer need to
be increased to encourage and assure people so that the use of Plastic money
increases.

10. It was found that most of the people prefer to pay their utility bills like Telephone
Bill, Electricity Bill etc by Plastic cards. In the changing scenario of today where
everything is going paperless and cashless, there is a great need to educate and
motivate the people to pay their utility bills by Plastic money

11. Providing Subsidy on Electronic Transactions can also lead to increased usage of
Plastic cards.

12. It is found from the study that plastic money helps to curb black money. None of the
money transactions are illegal. As, all the money transfer and transaction happens
through bank accounts, none of the illegal money can be transferred. All the
conversions of the Indian currency into dollars are recorded and also their amount is
recorded if a lot of money is converted. The number of fraudulent money practises are
reduced as no fake paper notes can be printed as they are not usable.

Thus, this study has tried to throw some light on the factors affecting the usage , prospects
and growth potential of Plastic card usage in Chhattisgarh along with some suggestions to
increase the usage.

67
CHAPTER 6 – ANNEXURE

68
69
70
71
72
 CHAPTER 7 – BIBLIOGRAPHY

 Mishra G. Indians Get Elastic with Plastic Money, The Economics Times 2007.
Retrieved April 02, 2008 from http:// economictimes.indiatimes.com/
articleshowl2382580.cms.

 Kaur M, Kaur K. Development of Plastic Cards Market: Past, Present and Future
Scenario in Indian Banks. Asia-Pacific Business Review 2008; IV(4): 62-74.
 Nath R, Schrick P, Parzinger M. Bankers‟ perspectives on internet banking. E-Service
Journal 2001; 1(1): 21-36.

 Dr. Subhani, Md Imtiaz. Plastic Money/Credit Cards Charisma for Now and Then”
with emphasis on affordability and preference of them by consumers because of their
convenience attribute during all kind of daily transactions. European Journal of
Scientific Research 2011; 62(1): 123-127.

 Haq T, Malik B. Consumer response towards the usage of plastic money with
emphasis on increase of shift of plastic money in India by consumers from Credit
cards to Debit cards. International Journal of Multidisciplinary Research 2014; 4(5):
93-102.

 Vimala V. and Dr. Sarala K.S., (2013).”Usuage and perception of plastic money
among the customers of BOI”. Asian Journal of Research in business Economics and
Management (Vol. 3, Issue 4, pp 24-37).

 Manivannan ,P. (2013), “Plastic Money a way for cash Less Payment System”,
Global Research Analysis journal, Vol. II, No. I Jan 2013 • ISSN No 2277 – 8160.

 Bansi Patel and Urvi Amin (2012), “Plastic Money: Roadmay Towards Cash Less
Society”, Paripex Indian journal Of Research, Vol. 1, No. 11, ISSN-2250-1991.

 . Khurana, Sunayna1,Singh, S. P.IUP Journal of Bank Management; Feb2011, Vol.

10Issue 1, p71-87, 17p, 31 Charts.

73