CONTENTS

1. Introduction

2. Objectives

3. Need for the study

4. Methodology

5. Time estimates

6. Limitations

Synopsis
Submitted by-
Sameer Dwivedi
8NBKR036
INC., Kanpur
Submitted to-
Mr. B.N.Chaudhary
Faculty guide,
INC., Kanpur
Title

Study of the Banks perspective in promoting Debit Cards in place of Credit Cards
& the preference of the user.

Introduction

The Indian banking market is zooming, with assets expected to reach $1 trillion by
2010. An expanding economy, a growing middle class and technological
innovations are contributory factors for this. The industry is focusing on the retail
side of the market, with a CAGR of 23 percent in the past five years. However,
despite this thrust on retail banking, banks will have to come up with creative and
simple solutions to make money in India. This is because India has a huge
unbanked population and unless this is included, neither will banks prosper, nor the
country. Banks have also realized the potential of this market and have come up
with innovative means of reaching it. They are going back to rural pockets for
financial inclusion. Building more branches in the countryside may not always be
cost-effective. So banks need to explore other options by developing a better
understanding of what rural households need and offer new products and
distribution networks to suit them. This trend has influenced tremendous growth
and opportunities in other banking allied activities. One noteworthy recent trend is
the success of constant innovation, and adoption and implementation of electronic
payments in the Indian payments market. The payment system in India has seen
unprecedented growth since the inception of electronic payment mechanisms. India
is dominated by paper-based transactions; however, electronic transactions are
quickly catching up. Various kinds of payment mechanisms in the retail payments
space have ensured more timely and efficient completion of financial transaction.
India has been one of the fastest growing countries for payment cards in the Asia-
Pacific region. About 35–40% of India’s population is working, with increasing
disposable income year on year. Consumerism is set to add impetus to growth in
the card base. India currently has approximately 130 million cards (both debit and
credit) in circulation. Its card market is growing at over 30% in the last three to
five years. Card payments are becoming vital in e-payments growth. Banking
customers now hold multiple cards for day-to-day activities like bill payments,
fund transfers, shopping, dining, and traveling etc.
Debit cards entered India about a decade ago, in 1998. The debit card market is
growing faster than credit cards. Today almost 70% of cards in circulation are debit
cards; there are about 102.4 million debit cards in circulation, amounting to
US$31.3 billion by value of transactions.

Objectives
• Compare to the various cards provided by the various banks to the satisfaction
level of customer.
• A comparative study on level of customer perception & behaviour towards Debit
Cards and Credit cards.
• To evaluate the impact of different Debit & Credit Cards services offered by the
one Bank to other bank services.
• To evaluate that is this, the impact of liquidity crunch facing by the banks during
recessionary period.

Need for study

In current scenario banks are promoting Debit cards in place of Credit cards this
may because of severe liquidity crunch or credit-averse behavior of Indian
consumer. To know the fact specially in Kanpur region, I have undertaken this
subject for my management thesis. My area of research for this topic is to know the
cause behind this trend.

This outcome of this study will certainly help to the concerned Banks to know the
consumer behavior in this regard and also be helpful to consumer for knowing pros
& cons of this service.

METHODOLOGY
Sources of data:
The data is collected mainly from primary and secondary data.
Primary data:
• Questionnaire method.
• Direct interview method

Secondary data:
• Various websites using Internet
Sample Size:
• 100 members

Type of sampling:
• Convenience method.

The information collected will interpret using a pie chart, bar chart, line chart.

Project Schedule:-
I will do the project as per the guidelines, 1st of all I will make questionnaires and
discuss it with the faculty guide, then after make some corrections as suggested by
my faculty guide. I have started the work with finalize the topic and discuss with
my faculty guide, now I am preparing the questionnaires and then after I will make
the research process schedule and then I will go for data collection and then find
the solution of the problems in my thesis and also try to mention the possible
solution for the same problems. Then I analyze the data and make a report on
hypothesis what I done in the research process.
Limitations
• This research is limited to only surroundings of Kanpur.
• Time is restricted to only 16 weeks.
• The data is to be collected from the customers and some of them may be
biased or usually reluctant to talk because they don’t have time to answer.