A PROJECT REPORT ON PLASTIC MONEY& E-CASH

Submitted to Punjab Technica !ni"e#$it% in &a#tia 'u 'i ment O' the #e(ui#ement$ 'o# the de)#ee o' MASTER O* +!SINESS A,MINISTRATION +% MAN+IR SYAL -./011/-2-/ SVCM

RAJP!RA 1344

Thi$ i$ to ce#ti'% that The &#oject #e&o#t entit ed

Plastic money and e-cash

Submitted In Pa#tia *u 'i ment O' The Re(ui#ement$ *o# the ,e)#ee O'
Master Of Business Administration Of Punjab Technical University !alandhar

Ha$ been &#e&a#ed unde# m% $u&e#"i$ion and )uidance and the 5o#6 ha$ not been &ub i$hed in an% jou#na 7 ma)a8ine o# boo69

Lectu#e#

AC"#O$%&'(&M&#T
I 5ou d i6e to a"ai thi$ o&&o#tunit% to e:&#e$$ m% dee& $en$e o' )#atitude and inde&tne$$ to a tho$e 5ho ha"e he &ed and encou#a)ed me to5a#d$ the $ucce$$'u com& etion o' &#oject9I a $o than6'u to M$9 Moni6a $aini ; &#oject )uide< 'o# he# "a uab e $u))e$tion7 )uidance in $o "in) the int#icate &#ob em$ th#ou)hout ou# &#e$ent Endea"ou# o' thi$ manu$c#i&t 9 A $o 5ithout he# initiation I 5ou d not ha"e a chance to unde#ta6e thi$ $tud% 5o#6 and cou d not e:& o#e the ne5 $&he#e o' 6no5 ed)e9 La$t but not the ea$t7 I e:&#e$$ m% )#atitude to a tho$e 5ho di#ect % and indi#ect % he &ed me 'o# $ucce$$'u com& etion o' thi$ &#oject9 Since#e #e)a#d$7

P)&*AC&

Mana)ement cou#$e$ 5ithout &#actica t#ainin) a#e incom& ete9 The#e'o#e7 it become$ nece$$a#% to unde#)o $uch t#ainin) in an o#)ani8ation9 Theo#etica $tudie$ in c a$$#oom a#e not $u''icient to unde#$tand the 'unctionin) o' com& e: and a#)e $i8ed o#)ani8ation9 P#actica t#ainin) $u&& ement$ the theo#etica $tudie$7 i9e9 it co"e#$ 5hat e't unco"e#ed in c a$$#oom9 It o''e#$ an e:&o$e$ a $tudent to in"a uab e t#ea$u#e$ o' e:&e#ience$9 *o# thi$ &u#&o$e the $tudent$ o' Ma$te# o' +u$ine$$7 Admini$t#ation i$ &#o"ided &#actica t#ainin) in "a#iou$ o#)ani8ation$9 The P#oject on =P a$tic Mone% and E-ca$h = ha$ been )i"en to me a$ a &a#t o' the-cu##icu um in T5o-Yea#$ Ma$te#$ ,e)#ee in +u$ine$$ Admini$t#ation b% the co e)e academic $ta'' ;*inance ,e&t9< I ha"e t#ied m% e"e be$t to &#e$ent thi$ Re&o#t a$ c ea# a$ &o$$ib e u$in) ba$ic te#m$ and $im& e an)ua)e $o that it 5i ma6e ea$% to unde#$tand to the conce#n &eo& e and a $o to the $tudent$ 'o# 'u#the# $tudie$9

SR9NO9
4 1 / 0 . 2 A @

CONTENTS
INTRO,!CTION O+JECTI?ES RESEARCH METHO,OLO>Y ,ATA ANALYSIS AN, INTERPRETATION *IN,IN>S S!>>ESTIONS AN, RECOMAN,ATION LIMITATIONS B!ESTIONAIRE

PA>E NO9
. 1@ 1/4 0A 0.4 .1

INTRO,!CTION

Plastic money and &-Cash

P a$tic mone% i$ main % a combination o'

49 CRE,IT CAR, 19 ,E+IT CAR, /9 ATM$

P a$tic mone% i$ (uite con"enient and $ecu#e9 It he &$ in t#an$mi$$ion o' &a%ment$ And )#antin) o' c#edit9 It e iminate$ cumbe#$ome ca$h t#an$action7 and &#otect$ *#om the &o$$ib e dan)e# o' the't o' ca$h9 P a$tic mone% in te#m$ o' c#edit ca#d 5a$ 'i#$t o' a i$$ued in 4-.4 and u$ed in A$$%#ia7 +ab% on and E)%&t /333 %ea#$ a)o9 The bi ,ebt$ 5e#e $ett ed b% one-thi#d ca$h and t5o-thi#d$ bi Pa&e# mone% 'o o5ed in the 17th centu#%9 Ch#i$to&he# Tho#nton & aced the 'i#$t ad"e#ti$ement 'o# c#edit in 4A/39 In the 4-13$7 a $ho&&e#=$ & ate-a Cbu% no57 &a% ate#C $%$tem-5a$ int#oduced in the !SA7 but it cou d be u$ed in the $ho&$7 5hich i$$ued it9 In 4-.37 ,ine#$ c ub and Ame#ican E:&#e$$ aunched thei# cha#)e ca#d in !SA7 the 'i#$t C& a$tic mone%C9 In 4-.47 ,ine#$ c ub i$$ued the 'i#$t c#edit ca#d$ to 133 cu$tome#$ 5ho cou d u$e it at 1A #e$tau#ant$ in Ne5 Yo#69 +ut it 5a$ on % unti the e$tab i$hment o' $tanda#d$ 'o# the ma)netic $t#i& in 4-A3 that the c#edit ca#d became &a#t o' the in'o#mation a)e9 *i#$t u$e o' ma)netic $t#i&e$ on the ca#d$ 5a$ in the ea# % 4-23$ 5hen the London T#an$it Autho#it% in$ta ed a ma)netic $t#i&e $%$tem9 o' e:chan)e-the 'o#e#unne# o' ban6note$ 5a$ e$tab i$hed in 40th centu#%9 o' e:chan)e9

'&B+T CARD:,ebit ca#d i$ mo#e ad"anced than A TM ca#d in that it can be u$ed at $&eci'ied #etai o# de&a#tment $to#e$ a $o In addition to $&eci'ied ban6

b#anche$9 ,ebit ca#d a#e & a$tic ca#d$ containin) e ect#o-ma)netic identi'ication9 +an6$ i$$ue the$e ca#d$ to thei# cu$tome#$ 5ho u$e them to &a% 'o# thei# &u#cha$e$ at $&eci'ied $a e te#mina $9 ,ebit ca#d automatica % debit$ $a"in)$ ban6 account o# cu##ent account in the $&eci'ied ban69 Thu$ the ca#d$ a#e #emote$ de"ice$ that 'aci itate the cu$tome#$ to ente# on thei# ban6 account$9 Dhen one o&en an account than one can e:&ect the ban6 to inc ude a debit ca#d o#7 a$ $ome ban6$ ca it chec6 ca#d9 The$e ca#d$ )i"e additiona ' e:ibi it% 5hen it come$ 'o# &a%in) 'o# &u#cha$e$9 T#aditiona ATM ca#d on % a o5$ 5ithd#a5in) ca$h o# &e#'o#min) othe# t#an$action$ at automated te e# machine9 A debit ca#d et$ one &a% 'o# &u#cha$e$ in $to#e$9 The mone% i$ ta6en di#ect % '#om %ou# account9 The#e=$ no C&a% ate# o&tion 5ith debit ca#d$C

A'VA#TA(&S O* '&B+T CA)',Obtainin) debit ca#d i$ o'ten ea$ie# than )ettin) a c#edit ca#d9 I' one (ua i'ie$ to o&en a ban6 account7 one can u$ua % )et a debit ca#d9

4< It '#ee$ one to ca##% ca$h o# chec6 boo6$9 1< It can $a"e one '#om ca##%in) oad$ o' chec6$ 5hen one i$ on t#a"e 9 /< Hono#ed b% me#chant$ 5o# d 5ide ju$t i6e a c#edit ca#d e:ce&t it debit$ %ou# chec6in) account9 0< No on)e# need to 5#ite chec6$ .< I' the ca$h i$ need to be 5ithd#a5n 'o#m the account than it$ (uite ea$% to u$e A TM 5ithout ha"in) to 5ait in ine 'o# a te e# to ca$h the chec69 2< ,oe$ not c#eate a oan that need to be &aid bac69 A< *a$t and con"enient to u$e9

'+SA'VA#TA(&S,4< In the e"ent one o$$e$ the ca#d o# it )et$ $to en7 one #un the #i$6 o' ha"in) $omeone u$e ca#d to ma6e &u#cha$e$7 one $hou d ha"e &ictu#e on the ca#d but it $ometime$ ma% not 5o#6$9 1< It do not #ecommend u$in) the ca#d to ma6e &u#cha$e$ on ine o# to ma6e #e$e#"ation$ 'o# ca#$7 hote #oom$7 o# ' i)ht a$ the ==ho d== ma% be & aced on %ou# account to #e$e#"e the o#de#7 one ma% ha"e a di''icu t time t#%in) to ba ance9 /< !$in) debit ca#d ma% mean$ that one ha$ e$$ &#otection9 0< A debit ca#d t#an$action )i"e$ no )#ace &e#iod i6e c#edit ca#d$9

C)&'+T CA)',The de"e o&ment o' c#edit ca#d i$ one o' #ecent &henomenon in the

ban6in) $ecto#9 A c#edit ca#d i$ the cha#)e ca#d9 It i$ a di#ect cha#)e a)ain$t the imit $anctioned9 It i$ a debt in$t#ument i$$ued b% $ome ban6$9 It i$ one $te& 'o#5a#d to5a#d$ ca$h e$$ and che(ue e$$ $ociet%9 The o&e#ation i$ th#ou)h e ect#onic 'und$ t#an$'e# (EFT) in$ta ation$ and inte#ban6 net5o#69 C#edit ca#d$ a#e the 6e% to o&enin) o' ban6 account$ 'o# dai % &a%ment$ b% the ca#d ho de#$9 It enab e$ the ca#d ho de#$ to ha"e o"e#d#a't 'aci itie$ #an)in) '#om R$917 333 to R$9437 333 de&endin) u&on the c#edit5o#thine$$ o' the &a#t%9

Man% Indian and 'o#ei)n ban6$ ha"e i$$ued c#edit ca#d$ to thei# cu$tome#$9 The i$$uin) ban6 tie$ u& 5ith numbe# o' e$tab i$hment$ inc udin) hote $7 ho$&ita $7 $ho&$7 &et#o &um&$ and de&a#tmenta $to#e$ 5hich hono# the c#edit ca#d$9 The i$$uin) ban6$ &#o"ide$ the 'aci it% o' c#edit ca#d$ to $e ected numbe# o' cu$tome# de&endin) u&on thei# month % income7 c#edit5o#thine$$ o# to com&an% e:ecuti"e$7 bu$ine$$men and hi)h and midd e income indi"idua $ etc9 +a$ica %7 the u$e o' c#edit ca#d$ he &$ the ho de# to ta6e ad"anta)e o' the t5o e$$entia a$&ect$ o' the 'inancia $e#"ice$ 'unction$E-

49 T#an$mi$$ion o' &a%ment$F

19 The )#antin) o' c#edit9 The de"e o&ment o' c#edit ca#d ha$ 'aci itated the u$e o' the$e t5o 'unction$ to)ethe#9 C#edit ca#d$ ha"e been #i)ht % ca ed C& a$tic mone%C9 The objecti"e i$ to &#o"ide con"enience and $ecu#it%9 It e iminate$ cumbe#$ome ca$h t#an$action$7 and &#otect '#om the &o$$ib e dan)e# o' &ic6 &oc6etin) a ot o' ca$h9 The#e i$ u$ua % an inte#e$t '#ee c#edit 'o# /3 to 0. da%$9 >#oce#ie$7 hote cha#)e$7 te e&hone bi $ and ta:e$ etc9 cou d

be &aid th#ou)h c#edit ca#d9

Ty-e of credit cards

Acco#din) it the &u#&o$e 'o# 5hich the c#edit ca#d$ a#e u$ed the% can be ,i"ided into 'o o5in) cate)o#ie$ 9

49 CRE,IT CAR,,It i$ a no#ma ca#d 5he#e b% the ho de# i$ ab e to &u#cha$e 5ithout ha"in) to &a% ca$h immediate %9 The c#edit ca#d i$ bui t a#ound #e"o "in) #oundin) &#inci& e 9>ene#a % a imit i$ $et to the amount o' mone% a ca#d ho de# can a $&end u$in) a ca#d in one month9 at the end o' e"e#% month the ha$ to &a% a &e#centa)e o' out$tandin)9 Inte#e$t i$ cha#)e 'o# the out$tandin) amount 5hich "a#% '#om /3G to /2G &e# annum9 A"e#a)e con$ume#$ &#e'e# thi$ t%&e o' ca#d$ 'o# hi$ &e#$ona &u#cha$e a$ he i$ ab e to de'e# &a%ment o"e# $e"e#a month$9 19 CHAR>E CAR, ,A cha#)e i$ intended to $e#"e a$ a con"enient mean$ o' &a%ment 'o# the )ood$ &u#cha$ed at membe# e$tab i$hment #athe# than a c#edit 'aci it%9 In$tead o' &a%in) a ca$h o# chec6 e"e#% time the c#edit ca#d ho de# ma6e a &u#cha$e 9Thi$ 'aci it% )i"e$ a con$o idated 'und 'o# a $&eci'ied &e#iod7 u$ua % one month9 +i $ a#e &a%ab e in 'u on &#e$entation9 The#e i$ no inte#e$t cha#)e$ and &#e $&endin) imit eithe#9 The cha#)e ca#d i$ u$e'u du#in) the bu$ine$$ t#i& and 'o# the ente#tainment e:&en$e$ 5hich a#e u$ua % bo#ne b% the com&an%9 Andh#a +an6 ca#d 9+O+ ca#d7 can ca#d be on) to thi$ cate)o#%9 /. In-$to#e ca#dEThe in-$to#e ca#d$ a#e i$$ued b% #etai e# o# com&anie$9 The$e ca#d$ ha"e Cu##enc% on % at the i$$ue# out et$ 'o# &u#cha$in) &#oduct$ o' the i$$ue# Com&an%9 Pa%ment can be month % o# e:tended c#edit ba$i$9 In India $uch Ca#d$ a#e no#ma % i$$ued b% 'i"e $ta# hote $7 #e$o#t$ and bi) hote $9

#&$ T/P&S O* C)&'+T CA)'S

0. Co#&o#ate c#edit ca#d$E-

Co#&o#ate c#edit ca#d$ a#e i$$ued to &#i"ate and &ub ic imited com&anie$ And &ub ic $ecto# unit$9 ,e&endin) u&on the #e(ui#ement$ o' each Com&an%7 o&e#ati"e add-on ca#d$ 5i be i$$ued to &e#$on$ autho#i8ed b% the com&an% i9e97 di#ecto#$7 $ec#eta#% o' the com&an%9 The name o' the com&an% 5i be embo$$ed on add-on ca#d$ a on) 5ith the name o' the add-on ho de#9 The main ca#d i$ on % a dumm% ca#d numbe# in the name o' the com&an% 'o# the &u#&o$e o' bi in) a the cha#)e$ o' the add-on ca#d$9 1. +u$ine$$ ca#d$,a bu$ine$$ ca#d i$ $imi a# to a co#&o#ate ca#d9 It i$ meant 'o# the u$e o' &#o&#ieta#% conce#n$7 'i#m$ o' cha#te#ed Accountant$ etc9 thi$ ca#d he &$ to a"ai o' ce#tain 'aci itie$ 'o# #eimbu#$ement and ma6e$ thei# bu$ine$$ t#i&$ con"enient9 /9 Sma#t ca#d$EIt i$ ne5 )ene#ation ca#d9 Embedded in the $ma#t ca#d a mic#ochi& 5i $to#e a moneta#% "a ue9 Dhen a t#an$action i$ made u$in) the ca#d7 the "a ue i$ debited and the ba ance come$ do5n automatica %9 Once the moneta#% "a ue come$ do5n to be ni 7 the ba ance i$ to be #e$to#ed a o"e# a)ain 'o# the ca#d to become o&e#ationa 9 The &#ima#% 'eatu#e o' $ma#t ca#d i$ $ecu#it%9 It &#e"ent$ ca#d #e ated '#aud$ and c#ime$9 It &#o"ide$ communication $ecu#it% a$ it "e#i'ie$ 5hethe# the $i)natu#e i$ )enuine o# not9 The ca#d a $o #eco)ni8e di''e#ent "oice$ and com&a#e$ 5ith the #eco#ded o#i)ina "oice9 Sma#t ca#d i$ an e ect#onic &u#$e 5hich attem&t$ to &#o"e to be a &anacea 'o# a the &#ob em$ a$$ociated 5ith t#aditiona cu##enc%9 09 ,ebit ca#d$Ec#edit ca#d$ ha"e &#o i'e#ated du#in) the a$t cou& e o' %ea#$ in a count#ie$ and ha"e become an acce&tab e a te#nati"e to &a&e# cu##enc%9 The de"e o&ed count#ie$ i6e !SA ha$ mo"ed a $te& 'u#the#9 ,ebit ca#d7 an e ect#onic &#oduct ha$ become mo#e and mo#e &o&u a# in the$e da%$9 .9 ATM ca#d$EAn ATM ca#d i$ u$e'u to a ca#d ho de# a$ it he &$ him to 5ithd#a5 ca$h '#om ban6$ e"en 5hen the% a#e c o$ed9 Thi$ can be done b% in$e#tin) the ca#d in the ATM in$ta ed at "a#iou$ ban6 ocation9

A'VA#TA(&S
4< It a o5$ ma6in) a &u#cha$e$ u$in) a ine o' c#edit9 1< The ba ance doe$ not need to be &aid bac6 #i)ht a5a%9 /< It i$ ea$% and con"enient to u$e9 0< I' one &u#cha$e$ the ai# ine tic6et$7 #e$e#"e$ and hote #oom o# a ca# 7 it i$ a nece$$it%9

'+SA'VA#T&S
49 I' one doe$ not &a% %ou# ba ance in 'u each month and on % &a% the minimum due 7one acc#ue$ 'inance cha#)e$9 19 *inancia hi$to#% o' a &a#ticu a# &e#$on i$ #e&o#ted to c#edit #e&o#tin) a)encie$ 'o# a "a#iet% o' ca$h 7 o# i$ ate on one &a%ment7 thi$ in'o#mation i$ #e' ected on cu$tome# c#edit #e&o#t and ma% be u$ed in dete#minin) the a&&#o"a o# dec ine o' 'utu#e c#edit9

P)OC&'U)&,-

4< A&& icant$ ha"e to $u&& % detai $ o' thei# a$$et$7 &e#$ona &a#ticu a#$ and 'inancia $tatu$ 5hen a&& %in) 'o# a c#edit ca#d9 The ban6 )#ant$ c#edit ca#d $ubject to $ome #u e$ and )uide ine$ to the cu$tome#9 1< The ca#dho de# ha$ to 6ee& hi$ d#a5 $ u& to the imit and &a% inte#e$t at $ti&u ated #ate and c ea# the o"e#d#a't 5ithin /3-0. da%$7 a on) 5ith inte#e$t and cha#)e$7 i' an%9 /< The ca#dho de# i$ a $o )i"en a chec6 boo6 5hich he can u$e 'o# &a%ment to e$tab i$hment 5hich joined thi$ $cheme and acce&t c#edit ca#d$ 'o# an% &a%ment$9 0< The $i)natu#e on the c#edit ca#d can be "e#i'ied 5ith that on the chec6 and hono#ed b% &#o&e# #eco#din) o' the c#edit ca#d numbe# on the bac6 o' the chec69 The chec6 can be i$$ued u& to the imit$ o' o"e#d#a't )i"en b% the ban69 .< The ban6 $end$ month % $tatement$ and #eco#d$Ea< The e:tent o' the uti i8ation o' o"e#d#a't b% the ca#dho de# b< ,ue date 'o# #e&a%ment o' o"e#d#a't$ 5ith inte#e$t etc9

PA)T+CU%A)S '+SP%A/&' O# T2& '&B+T A#' C)&'+T CA)'S,-

49 NAME O* THE C!STOMERE - E"e#% ca#d di$& a%$ the name o'
cu$tome#9 It $hou d be $&e ed co##ect %9 In ca$e7 it doe$n=t7 the cu$tome# can -contact the cu$tome# $e#"ice ce Hhe & ine and )et the nece$$a#% co##ection done9 Thi$ 'aci it% i$ &#o"ided '#ee o' co$t b% the ban6$9

19 42-,I>IT CAR, N!M+ERE - A uni(ue 42 di)it numbe# i$

a otted to e"e#% cu$tome#Hca#d ho de#9

/9 ?ALI,ITY ,ATEE - The ca#d mention$ the &e#iod th#ou)h 5hich

it i$ "a id9 The ca#d i$ u$ua % "a id '#om the da% it i$ #ecei"ed b% the cu$tome# u& to and inc udin) the a$t da% o' the month indicated on the ca#d9 A'te# that the ca#d ha$ to be #ene5ed9

09 THE ?ISA HOLO>RAM AN, THE ?ISA LO>O E - The

ho o)#am and the o)o en$u#e that a e$tab i$hment$ th#ou)hout the 5o# d di$& a%ed the ?ISA o)o 5i acce&t the ca#d9

.9 NAME O* THE ISS!IN> +ANIE - The ca#d indicate$ on the

to& the name O' the i$$uin) ban69

29 SI>NAT!RE PANELE - The bac6 o' the ca#d contain$ a $i)natu#e

&ane 9 The cu$tome# mu$t &ut hi$ $i)natu#e$ on the $i)natu#e &ane to &#e"ent mi$u$e b% an% othe# &e#$on9 Thi$ identi'ie$ the ca#d ho de#9 Si)natu#e$ on the &ane 5ou d im& % that ca#dho de# ha$ )i"en hi$ con$ent to abide b% the te#m$ and condition$ )o"e#nin) the u$e o' c#edit ca#d9 The ca#d i$ "a id i' $i)ned9

A9 MA>NETIC STRIPE - The b ac6 ma)netic $t#i& contain$

im&o#tant in'o#mation in encoded 'o#m and need$ $&ecia hand in)9 The ca#d $hou d not be 6e&t in an a#ea 5he#e the#e i$ a continuou$

ma)netic 'ie d9 It $hou d not be e't on to& o' the te e"i$ion $et o# nea# an% e ect#onic a&& iance$9 The ca#d $hou d be 6e&t a5a% '#om heat and di#ect $un i)ht9 The$e $im& e &#ecaution$ 5i he & &#otect the im&o#tant in'o#mation $to#ed on the ma)netic $t#i& and en$u#e that the ho de# doe$ not 'ace an% &#ob em 5hi e u$in) the ca#d9

@9 PIN ;PERSONAL I,ENTI*ICATION N!M+ER<E- Each

ca#dho de# i$ i$$ued a &a$$5o#d o# PIN to enab e u$e o' the ca#d 'o# acce$$in) hi$Hhe# ca#d account on the A TM and inte#net and a $o 'o# a"ai in) an% &#i"i e)e7 bene'it o# $e#"ice that ma% be o''e#ed b% ban6 on the ca#d9 The PIN i$ communicated to the ca#d ho de# enti#e % at hi$Hhe# #i$6 5ho $ha not di$c o$e the PIN to an% &e#$on and $ha ta6e a &o$$ib e ca#e to a"oid it$ di$co"e#% b% an% &e#$on9 The ca#dho de# $ha be iab e 'o# a t#an$action$ made 5ith the u$e o' the PIN 5hethe# 5ith o# 5ithout the 6no5 ed)e o' the ca#d ho de# 9

*ACTO)S &**&CT+#( T2& USA(& O* CA)'S

4<

E,!CATION 1< A>E O* THE *AMILT HEA,9 /< SOCIO-ECONOMIC STAN,IN>9 0< ATTIT!,E9 .< INCOME O* THE HOL,ERS9

ATM ,-3 automated teller machine4 ,-

An automated te e# machine o# automatic te e# machine i$ a com&ute#i8ed

te ecommunication$ de"ice that &#o"ide$ 'inancia in$titution$ cu$tome#$ a method o' 'inancia t#an$action$ in a &ub ic $&ace 5ithout the need o' a human c e#6 o# ban6 te e#9 On mo$t modem ATM$7 the cu$tome#$ identi'ie$ him o# he#$e ' b% in$e#tin) a & a$tic A TM ca#d 5ith a ma)netic $t#i&e o# a & a$tic $ma#t ca#d 5ith a -' chi&7 that contain$ hi$ o# he# ca#d numbe# and $ome $ecu#it% in'o#mation $uch a$ an e:&i#ation date o# C?C ;C??< $ecu#it% i$ &#o"ided b% the cu$tome# ente#in) a &e#$ona identi'ication numbe# ;PIN<9 ATM$ a#e 6no5n b% "a#iou$ ca$ua te#m$ inc udin) ca$h machine7 ho e in a 5a 7 ca$h &oint o# +ancom ;i9e9 Eu#o&e and Ru$$ia<9 The occa$iona % u$ed ATM i$ an e:am& e o' RAS $%nd#ome9

2+STO)/ O* ATM,ATM 5a$ de"e o&ed and bui t b% Luthe# >eo#)e Simjian and in$ta ed in 4-/- in NED YORI cit% +% the CITY +ANI O* NED YORI7 but #emo"ed a'te# 2 month$ due to ac6 o' cu$tome# acce&tance9 The#e'o#e the hi$to#% o' A TM &au$ed 'o# 1. %ea#$7 unti ,E LA R!E de"e o&ed the 'i#$t e ect#onic A TM 5hich 5a$ in$ta ed 'i#$t in EN*IEL, TODN in NORTH LON,ON ON 1A J!NE 4-2A b% +ARCLA YS +ANI9

%OCAT+O#,ATM$ a#e & aced not on % in$ide9 and nea# the &#emi$e$ o' the ban6 but a $o in ocation$ $uch a$ $ho&&in) cente#$7 ma $7 ai#&o#t$7 )#oce#% $ho&$7 )a$ $tation$7 #e$tau#ant$7 o# an% & ace 5he#e a#)e numbe# o' &eo& e ma% )athe#9

T/P&S O* ATMs,The#e a#e t5o t%&e$ o' A TM$ that ha"e de"e o&ed o"e# timeE-

4< MONO *!NCTION ,E?ICESE - In 5hich on % one t%&e o' mechani$m i$ &#e$ent ;$uch a$ ca$h di$&en$in) o# $tatement &#intin)<9 1< M!L TI *!NCTION ,E?ICESE-In 5hich inco#&o#ate mu ti& e mechani$m$ to &e#'o#m mu ti& e $e#"ice$ ;$uch a$ acce&tin) de&o$it$7 di$&en$in) ca$h7 &#intin) $tatement$7 etc< a $in) e 'oot &#int9 5ith in a

2A)'$A)&S +# ATM,4< CP! 1< MA>NETIC OR CHIP CAR, REA,ER9 /< SEC!RE CRYPTOPROCESSOR 0< ,ISPLAY .< *!NCTION IEY +!TTONS 2< RECOR, PRINTER A< ?A!LT @< HO!SIN> -9 CHEB!E PROCESSIN> MO,!LE 439 +ATCH NOTE ACCEPTOR

&-CAS2

$hat is e-cash5
&-Cash i$ an e ect#onic &a%ment o&tion9 It i$ &a%ment and mone% t#an$'e# to be made th#ou)h the Inte#net9 It $e#"e$ a$ an e ect#onic a te#nati"e to t#aditiona &a&e# method$ $uch a$ coe(ua and mone% o#de#$9

E-CASH i$ chan)in) the 5a% cu##enc% i$ &e#cei"ed9 Dhi e the chan)e $eem$ a$ #e"o utiona#% a$ the con"e#$ion '#om "a ue-ba$ed medium$ o' e:chan)e ;e9)9 )o d7 $i "e#< to &a&e# cu##enc%7 it i$ actua % on % an e"o ution '#om cu##ent &a&e#-ba$ed medium$9 The#e a#e the numbe#$ o' bene'it$ o' E-CASH o"e# )#eenbac6$7 but the#e a#e a $o ne5 i$$ue$ 5ith 5hich to contend9 In addition to ne5 i$$ue$7 the#e a#e a $o ne5 'o#m$ o' o d &#ob em$7 5hich E-Ca$h 5i not $o "e9 In it$ cu##ent $tate e ect#onic ca$h i$ a nece$$a#% inno"ation in the 'inancia ma#6et$9 Ho5e"e#7 it i$ hi)h % doubt'u that &-Cash 5i actua % #e& ace &a&e# cu##enc% o# Not7 it i$ #ecent de"e o&ment but not a$ much &o&u a# a$ the & a$tic mone%9 Some im& ementation o' e-ca$h aim to be $ecu#e and unt#aceab e7 but the#e a#e $e"e#a &#ob em$ u$in) e ca$h9

E-ca$h7 di)ita ca$h o# e-do a#$7 a$ it i$ 6no5n7 5a$ de"e o&ed a$ a #e& acement 'o# the t#aditiona conce&t o' mone%9 It 5a$ a $o meant to ha"e additiona ad"anta)e$ that con"entiona mone% doe$ not ha"e9 CE-ca$h i$ nothin) but b oc6 o' data that #e&#e$ent mone%9 It i$ &a%ment me$$a)e bea#in) a di)ita $i)natu#e that 'unction a$ a medium o' e:chan)e o# "a ue9 Thi$ data can be '#om one &oint to anothe# "ia net5o#6$ and can be t#aded a$ to6en$ to be e:chan)ed 'o# the t#an$'e##ed #ea mone%9C

E:chan)e 'o# #ea mone% 5a$ an o#i)ina conce&t 5ith 5hich e-ca$h 5a$ de"e o&ed but no5 the#e a#e man% e-ca$h &#o"ide#$ 5ho a#e t#%in) to com& ete % #e& ace con"entiona &a&e# mone% 5ith e-ca$h9 The$e entitie$ intended to &#omote e-ca$h a$ a medium 'o# obtainin) &#oduct$ and $e#"ice$7 ju$t i6e e-ca$h9

2O$ +T $O)"S
E-ca$h i$ u$ua % $to#ed on com&ute#$ o# mobi e de"ice$9 Common 'o#m$ a#e $o't5a#e =5a et= &#o)#am$ that a#e in$ta ed on the PC9 The$e 5a et &#o)#am$ communicate 5ith the ban6 o# e-ca$h i$$ue# 5hen a t#an$action ha$ to be made9 A t#an$action$ a#e $ecu#ed u$in) com& e: enc#%&tion techni(ue$9 The t#an$action i$ com& eted a'te# u$e# "e#i'ication9 The "a ue o' e-ca$h #e(ui#ed i$ ta6en '#om bu%e#$= account and de&o$ited in the account o' $e e#9 E-ca$h doe$ not #e(ui#e in$ta ation o' &#o)#am$ and can a $o be co ected b% b#o5$in) ce#tain $ite$ o# &u#cha$in) 5ith ca$h9

T/P&S O* &-CAS2

49 AnonymousE In the anon%mou$ t%&e7 t#an$action$ made b% the u$e# cannot be t#aced bac6 to him9 Mone% i$ c#edited '#om the u$e#=$ e-ca$h account7 but no one 5ou d be ab e to t#ace 5he#e it 5ent9 Thi$ i$ mo$t &o&u a# 6ind o' e-ca$h in u$e no5 $ince it i$ $imi a# to &a&e# mone% 5e u$e9 19+dentifiedE In thi$ t%&e it i$ &o$$ib e to t#ace bac6 the t#an$action$ to u$e#9 /9 OnlineE The t#an$action ta6e$ & ace th#ou)h the inte#media#% $uch a$ a ban6 o# an e-ca$h &#o"ide#7 o"e# a net5o#6 o# the Inte#net9 09 OfflineE Thi$ doe$ not #e(ui#e an% t%&e o' inte#media#% and can be done 5ithout connectin) to the thi#d &a#t%9 Sma#t ca#d$ a#e %et anothe# 'o#m o' e-ca$h that a#e de"e o&in) #a&id %9 He#e7 e-ca$h i$ $to#ed in embedded chi&$ and the t#an$action method i$ $imi a# to that o' c#edit ca#d$9

A te#nati"e S%$tem$ Technica % e ect#onic o# di)ita mone% i$ a #e&#e$entation7 o# a $%$tem o' debit$ and c#edit$7 u$ed ;but not imited to thi$< to e:chan)e "a ue7 5ithin anothe# $%$tem7 o# it$e ' a$ a $tand a one $%$tem7 on ine o# o'' ine9 A $o $ometime$ the te#m e ect#onic mone% i$ u$ed to #e'e# to the &#o"ide# it$e '9 A &#i"ate cu##enc% ma% u$e )o d to &#o"ide e:t#a $ecu#it%7 $uch a$ di)ita )o d cu##enc%9 An e-cu##enc% $%$tem ma% be 'u % bac6ed b% )o d ; i6e e-)o d<7 non-)o d bac6ed ; i6e e-cu##enc%<7 o# both )o d and non)o d bac6ed ; i6e e-+u ion and Libe#t% Re$e#"e<9 Man% $%$tem$ 5i $e thei# e ect#onic cu##enc% di#ect % to the end u$e#7 $uch a$ Pa%&a and e-+u ion7 but othe# $%$tem$7 $uch a$ e-)o d o# Deb Mone%7 $e on % th#ou)h thi#d &a#t% di)ita cu##enc% e:chan)e#$7 i6e Omni Pa%7 Ice >o d o# >o d totem 5ho $e#"ice o#de#$ manua %7 o# automated 5eb$ite$9

In the ca$e o' Octo&u$ Ca#d in Hon) Ion)7 de&o$it$ 5o#6 $imi a# % to ban6$=9 A'te# Octo&u$ Ca#d Limited #ecei"e$ mone% 'o# de&o$it '#om u$e#$7 the mone% i$ de&o$ited into ban6$7 5hich i$ $imi a# to debit-ca#di$$uin) ban6$ #ed &o$itin) mone% at cent#a ban6$9 Some communit% cu##encie$7 i6e $ome LETS $%$tem$7 5o#6 5ith e ect#onic t#an$action$9 C%c o&$ So't5a#e a o5$ c#eation o' e ect#onic communit% cu##encie$9 Ri&& e moneta#% $%$tem i$ a &#oject to de"e o& a di$t#ibuted $%$tem o' e ect#onic mone% inde&endent o' oca cu##enc%9

Virtual debit cards

?a#iou$ com&anie$ no5 $e ?ISA7 Ma$te#Ca#d o# Mae$t#o debit ca#d$7 5hich can be #echa#)ed "ia e ect#onic mone% $%$tem$9 Thi$ $%$tem ha$ the ad"anta)e o' )#eate# &#i"ac% i' a ca#d &#o"ide# i$ ocated o''$ho#e7 and )#eate# $ecu#it% $ince the c ient can ne"e# be debited mo#e than the "a ue on the &#e&aid ca#d9 A $o debit .' ca#d$ a#e u$e'u 'o# &eo& e 5ho do not ha"e a ban6 account o# a#e i"in) in count#ie$ 5hich do not autho#i8e inte#nationa mone% t#an$'e#$9 >ene#a % ca#d$ can be #echa#)ed 5ith eithe# e-)o d7 e-+u ion7 Deb Mone%7 o# "ia a 5i#e t#an$'e#9 Ad"anta)e$ Mo$t mone% in toda%=$ 5o# d i$ e ect#onic7 and tan)ib e ca$h i$ becomin) e$$ '#e(uent9 Dith the int#oduction o' inte#net H on ine ban6in)7 debit ca#d$7 on ine bi &a%ment$ and inte#net bu$ine$$7 &a&e# mone% i$ becomin) a thin) o' the &a$t9 +an6$ no5 o''e# man% $e#"ice$ 5he#eb% a cu$tome# can t#an$'e# 'und$7 &u#cha$e $toc6$7 cont#ibute to thei# #eti#ement & an$ ;$uch a$ Canadian RRSP< and o''e# a "a#iet% o' othe# $e#"ice$ 5ithout ha"in) to hand e &h%$ica ca$h o# chec6$9 Cu$tome#$ do not ha"e to 5ait in ine$F thi$ &#o"ide$ a o5e#-ha$$ e en"i#onment9 ,ebit ca#d$ and on ine bi &a%ment$ a o5 immediate t#an$'e# o' 'und$ '#om an

Indi"idua J$ &e#$ona account 5ithout an% actua &a&e# t#an$'e# o' mone% thi$ o''e# a )#eat con"enience to man% &eo& e and bu$ine$$ a i6e

The %on6 -Term

I' the inte#net )ene#a %7 &e#ha&$ aided b% the &#e"a ence o' e-ca$h7 5e#e to chan)e mi)#ation &atte#n$7 thin)$ 5ou d be)in to oo6 "e#% di''e#ent9 Do#6& ace $a'et% #u e$ do not need to chan)e to o$e thei# e''ecti"ene$$ i' the 5o#6& ace mo"e$9 It ma% be that ce#tain t%&e$ o' 6no5 ed)e 5o#6e#$ ba$ed in o5-5a)e a#ea$ 5i be ab e to inc#ea$e the ma#6et 'o# thei# $e#"ice$9 Mathematician$ and &#o)#amme#$ ha"e a #ead% be)un to e:& oit thi$ o&&o#tunit%F &e#ha&$ edito#$ and a#ti$t$ 5i be ne:t9 A$ the Inte#net become$ the eadin) mean$ to #a&id % di$$eminate $cienti'ic7 technica and e"en $ocia in'o#mation7 &e#$on$ in e$$ de"e o&ed count#ie$ 5ho 'ind them$e "e$ i$o ated in &#o"incia a#ea$7 o# a#e conce#ned about 6ee&in) ab#ea$t o' de"e o&ment$ in thei# 'ie d ma% conc ude that the% no on)e# ha"e to mo"e to mo#e de"e o&ed count#ie$ and #e)ion$ to do cuttin)-ed)e 5o#67 o# to &a#tici&ate in $cho a# % e:chan)e$9 The inc#ea$ed abi it% o' $ome &e#$on$ in t#aditiona % o5-5a)e a#ea$ to $e thei# $e#"ice$ on the 5o# d ma#6et and &a#tici&ate in ) oba dia o)ue$ ma% he & $tem the $oca ed Cb#ain d#ainC9 Indeed7 it ma% inc#ea$e the C#e"e#$e b#ain d#ainC a$ $ome e:&at#iate$ #etu#n to thei# count#% o' o#i)in7 &e#ha&$ e"en joined7 b% a ne5 5a"e o' e:&at#iate 6no5 ed)e 5o#6e#$ $ee6in) a o5e# co$t o' i"in)9 Dhethe# o# not thi$ ha&&en$ in the on) te#m7 and it 5i ha&&en in an% a#)e $en$e in the $ho#t o# medium te#m9 not

#&(AT+V& &**&CTS O* &-CAS2 O# P)+V+C/,-

4 PRO*ILIN>E-It 5i

ead to &uttin) do5n in com&ute# the detai ed

&#o'i e$ o' con$ume#=$ citi8en$9 I' 555 o# it$ $ucce$$o#$ become$ 'ee ba$ed $%$tem$ in 5hich #eade#$ a#e cha#)ed 'o# acce$$7 con$ume#$ 5ho u$e t#aceab e e-ca$h 5i 'ind that thei# #eadin) habit$ a$ 5e a$ t#an$action$ become "a uab e7 t#adab e data9 Thi$ 5i e$$en thei# &#i"ac% and cou d ha"e & chi in) e''ect on #eade#$ and &o$$ib % on autho#$ a $o9

1< LIMITE, RE>!LA YORY AR+ITRA>EE - E-CASH 5i 'aci itate t#an$-bo#de# t#an$action$ in 5hich no &h%$ica )ood$ a#e e:chan)ed9 Le)a t#an$action$ 5i mo$t o'ten occu# in othe# &a%ment media notab % c#edit ca#d$ and debit ca#d$7 becau$e con$ume#$ 5i ha"e )#eate# e)a &#otection i' $omethin) )oe$ 5#on) 5ith the t#an$action9 Toda%=$ t#an$-bo#de# )amb in) and &o#no)#a&h% 5i it time &a"e the 5a% 'o# t#an$-bo#de# $ecu#itie$ t#adin) and o'' $ho#e b#o6e#a)e$7 $ome o' 5hich 5i "io ate the a5$ o' the cu$tome#=$ home $tate9

/< LAD 5i

EN*ORCEMENT

REACTION

E-La5

en'o#cement

a)encie$ 'ea# that e-ca$h can ea$i % be u$ed 'o# mone% aunde#in) ead to "i)o#ou$ )o"e#nment action to $ecu#e $ome combination o' the 'o o5in)E-

a< Le)a &#ohibition on i$$uance o' anon%mou$ and $emi-anon%mou$ e-ca$h7 thu$ e:ace#batin) the &#o'i in) &henomenon de$c#ibed abo"e9

b< Le)a &#ohibition on the u$e o' anon%mou$ and $emi-anon%mou$ eca$h9

c< A #e(ui#ement that $ome 'o#m o'K identit% e$c#o5 L i9e9 a $u&&o#tab e #eco#d o' the u$e#J$ identit% i$ bui d into the ca$h9

&-Cash, The *uture of Money

The#e=$ a )#ou& o' c#%&to)#a&h% #e$ea#che#$ at Mic#o$o't 5ho be ie"e that e-ca$h i$ the 'utu#e o' mone%9 One da%7 the% $a%7 5e= ca##% itt e ca#d$ 5ith com&ute# chi&$ ca ed e-5a et$ and e:chan)e enc#%&ted bit$ o' in'o#mation 'o# thin)$ 5e need7 ju$t a$ 5e ca##% bi $ and coin$ toda%9 The% a#e 5o#6in) to bui d a &#otot%&e o' $uch a $%$tem7 $omethin) that man% com&anie$ ha"e t#ied 5ithout $ucce$$9 No matte#7 the% $a%9 E"entua %7 the e''iciencie$ and ' e:ibi it% a''o#ded b% com&ute#$ and c#%&to)#a&h% 5i ma6e e-ca$h a "iab e 'o#m o' &a%ment9 The #e$ea#che#$ a#e Je##% Ioch7 Yaa6o" Jacobin and Pau En) and9 In o#de# to thin6 about mone%=$ 'utu#e7 the% $a%7 it=$ im&o#tant to con$ide# mone%=$ &a$t and it$ e"o ution '#om ba#te# to c#edit ca#d$ and on ine $toc6 t#adin)9 Mone% i$ a $ocia con$t#uctF it &#oceed$ out o' $ha#ed notion$ about 5hat i$ "a uab e9 To bui d a ne5 economic $t#uctu#e7 the% mu$t e:amine &eo& e=$ beha"io# 5ith mone% and 5o#6 bac65a#d$ '#om the#e7 tai o#in) the techno o)% to $ocia #ea itie$9 Mone%=$ hi$to#% $ta#t$ 5ith ba#te#E $o man% chic6en$ 'o# a $hee&7 $o man% $hee& 'o# a &iece o' and9 Then7 becau$e %ou can on % 6ee& $o man% $hee&7 it 5a$ nece$$a#% to in"ent a medium o' e:chan)e9 In the ancient Nea# Ea$t7 5he#e 5e$te#n cu tu#e o#i)inated7 the% $ett ed on &#eciou$ meta $7 )o d and $i "e#7 to #e&#e$ent a $tanda#d o' "a ue9 Late#7 )o"e#nment$ ente#ed the &ictu#e7 mintin) coin$ in $tanda#d 5ei)ht$ and )ua#anteein) thei# "a ue9 A bi) ea& in mone%=$ e"o ution came in the ate Renai$$ance 5ith the in"ention o' the ban69 The Roth$chi d 'ami ie$ 5e#e the 'i#$t to thin6 o' i$$uin) ette#$ o' c#edit to t#a"e in) me#chant$ that the% cou d #edeem at thei# de$tination7 $&a#in) them the incon"enience and dan)e# o' t#a"e in) the bandit-in'e$ted #oad$ 5ith thei# )o d9 >o"e#nment$ (uic6 % &ic6ed u&

on thi$ )ame a$ 5e and i$$ued &a&e# mone%9 A do a# bi - bo#n du#in) the Ci"i Da# 5hen the !9S9 )o"e#nment 'ound it$e ' $ho#t o' )o d to &a% it$ a#mie$ i$ ju$t a )#im% &iece o' &a&e#9 It$ "a ue ie$ in the uni"e#$a % he d be ie' that it=$ 5o#th a cu& o' co''ee7 a hambu#)e#7 a bu$ #ide9 Ame#ican$ in the &a$t .3 %ea#$ ha"e $een a mo"ement a5a% '#om ca$h9 Pa%chec6$ )o di#ect % to ou# ban6 account$9 De &a% ou# bi $ 5ith chec6$ o# '#om an on ine account9 De )o $ho&&in) not 5ith a 5ad o' ca$h7 but 5ith a & a$tic ca#d9 De ha"e )otten u$ed to thin6in) o' mone% a$ numbe#$ on a $c#een o# on a $tatement9 At each $te& in it$ e"o ution7 mone% ha$ become mo#e ab$t#act - '#om $omethin) %ou cou d actua % eat to a #a#e meta to a common &iece o' &a&e# to a $e#ie$ o' one$ and 8e#oe$ on $ome ban6=$ com&ute# $ome5he#e9 The mo#e meanin) e$$ the to6en$ 5e e:chan)e7 the )#eate# ou# #e iance on t#u$t and on a $ha#ed $en$e o' mone%=$ #ea it%9 None o' toda%=$ & a$tic ca#d$ can match the "i#tue$ o' ca$hE &o#tab e7 i(uid and anon%mou$7 it a o5$ &eo& e to o&e#ate out$ide the $%$tem o' ban6$ and accountant$9 Peo& e co ect do a#$ no5 the 5a% the% u$ed to hoa#d )o d7 $ta$hin) them in 5ate#&#oo' &ac6a)e$ unde# the bed 'o# the &#o"e#bia #ain% da%9 E-ca$h i$ not meant to #e& ace the do a# bi 7 but it can )o 5he#e dead &#e$ident$ cannot - onto the Inte#net7 do5n a co&&e# o# 'ibe# o&tic 5i#e at the $&eed o' i)ht9 So 'a#7 the mode 'o# $ucce$$'u Inte#net comme#ce ha$ been com&anie$ i6e ,e Com&ute#E bu% thin)$ at a di$count '#om a #etai e# 5ho dea $ in hu)e "o ume$7 &a% 5ith a c#edit ca#d o"e# a $ecu#e connection7 and #ecei"e the item a da% o# t5o ate# b% &a#ce &o$t9 Othe# $ite$ ma6e mone% b% $e in) banne# ad"e#ti$ement$- $o that 5eb $u#'e#$ u#ed b% the '#ee in'o#mation 5i be unab e to #e$i$t ta6in) in the b#and name & acement9 The $ub$c#i&tion mode - #e$e#"in) the choice content$ o' the $ite to tho$e 5ho ha"e &a#ted 5ith thei# mone% u& '#ont - ha$ 5o#6ed on % 'o# ha#d in'o#mation in matte#$ o' 'inance and a59 The Achi e$ hee o' c#edit ca#d$ i$ that the ban6$ that i$$ue them cha#)e

the me#chant bet5een A3 cent$ and M1 'o# each t#an$action9 Thi$ ea"e$ a niche 'o# e-ca$h7 5hich 5ou d ma6e it &o$$ib e 'o# the 'i#$t time to $e thin)$ on the Inte#net 'o# e$$ than M.7 the &oint at 5hich a c#edit ca#d t#an$action i$ no on)e# 5o#th the bothe#9 It 5ou d o&en a "a$t ma#6et 'o# )ood$ that can be de i"e#ed o"e# the 5i#e$ #athe# than in a &h%$ica &ac6a)e9 Reco#ded mu$ic cou d be $o d b% the $on)7 jou#na i$m b% the $to#%7 $toc6 ti&$ b% the ti&7 $o't5a#e u&)#ade$ and &atche$ and a&& et$ and ima)e$ b% the &iece9 Jacobin e$timate$ the "a ue o' e-ca$h comme#ce on the Inte#net cou d #each M/3 bi ion a %ea# - a '#action o' the tota amount o' mone% chan)in) hand$ in c%be#$&ace7 but an att#acti"e $ ice o' &ie 'o# the one 5ho 'i#$t 'i)u#e$ out ho5 to cut it9 !n i6e a c#edit ca#d7 5he#e the ban6 hand e$ and #eco#d$ e"e#% t#an$action and ne"e# ee$ )o o' the mone%7 e-ca$h7 in o#de# to be i(uid and anon%mou$7 mu$t $ta% in the hand$ o' the u$e#9 The#e a#e $e"e#a 5a%$ to do it9 In a $e#"e# $ide 5a et7 the cu$tome#=$ 'inanciaI in'o#mation i$ $to#ed on a #emote $e#"e# in a & ace 5he#e he '#e(uent % doe$ bu$ine$$9 In a c ient $ide 5a et7 the con'identia in'o#mation i"e$ on a de"ice the u$e# 6ee&$7 a C$ma#t ca#d7C &a mto& com&ute# o# PC7 and he doe$n=t ha"e to t#u$t an%one e $e to 6ee& it con'identia 9 The#e a#e t5o t%&e$ o' c ient $ide 5a et$9 Coin 5a et$ di$&en$e itt e C9coin$C c#%&to)#a&hica % encoded b% the 'inancia in$titution 5ith $e#ia numbe#$ that e$tab i$h thei# "a idit% and di$tin)ui$h them '#om one anothe#9 +a ance 5a et$ 5o#6 b% $ubt#actin) '#om the u$e#=$ &#e&aid ba ance each time he bu%$ $omethin)9 Dhe#e the#e i$ ca$h7 $omeone 5i a 5a%$ thin6 o' a 5a% to $tea it7 b% 'o#ce o# b% 'o#)e#%9 Thi$ i$ 5he#e c#%&to)#a&h% come$ in7 and it=$ a #ea % inte#e$tin) &#ob em becau$e the &e#$on 5ho o5n$ the encoded data cou d be the enem%7 the one 5ho 5ant$ to $tea the code and #e&#oduce mone% end e$$ %9 CDe heed to achie"e a de)#ee o' tam&e# #e$i$tance to e$ca&e the 'act that it $&end$ it$ i'etime in the hand$ o' &otentia mi$c#eant$ and thie"e$7C $a%$ Ioch9 The#e i$ an enti#e cotta)e indu$t#% o' $ma#t &eo& e7

$ome o' them 5ith $o&hi$ticated chi&-ma6in) machine#%7 thin6in) o' ne5 5a%$ to c#ac6 tam&e#-#e$i$tant $%$tem$7 #e"e#$e-en)inee#in) chi&$ to 'ind out 5hat ma6e$ them 5o#67 'i)u#in) out the $ec#et code$ that a o5 them to e:& oit $u&&o$ed % $ecu#e $o't5a#e9 The c#%&to)#a&he#$ #ea i8e that no $%$tem i$ 'oo &#oo'7 but the% can de$i)n it $o that it ta6e$ a "e#% hi)h de)#ee o' $6i to )et in$ide9 CDe mu$t de$i)n ou# $%$tem $o that ea$% $o't5a#e attac6$ cannot #e$u t in the't7C $a%$ En) and9 Dith that much mone% %in) a#ound7 a ce#tain de)#ee o' the &ett% the't me#chant$ ca C$h#in6a)eC i$ ine"itab e7 $o the de$i)ne#$ o' the $%$tem mu$t ma6e $u#e it doe$n=t )et out o' hand9 Jacobin &#o"ed a theo#em in a &a&e# in thi$ %ea#=$ *inancia C#%&to)#a&h% con'e#ence on the amount o' the't that can be &#edicted '#om each t%&e o' 5a et 5hen on % a '#action o' the t#an$action$ a#e audited9 Auditin) e"e#% itt e t#an$action 5i'u d be &#ohibiti"e % e:&en$i"e7 and 5ithout a 'u audit7 the $%$tem 5i be &#one to &i 'e#a)e9 Jacobin $ho5ed that unde# &a#tia audit condition$7 the u&&e# bound on the't ;that i$E the ma:imum amount o' mone% that can be $to en 5ith a 'o#)ed ca#d be'o#e the the't i$ di$co"e#ed and the $&endin) di$a o5ed< can )#o5 e:&onentia % 5ith a ba ance 5a et9 A coin 5a et 5he#e each &iece o' mone% ca##ie$ it$ o5n $i)natu#e and can be accounted

Objectives
49 To $tud% the a5a#ene$$ #e)a#din) & a$tic mone% and e-ca$h amon) the cu$tome#$9

19 To 'ind out the $ati$'action e"e o' u$e#$ o' & a$tic mone%9 /9 To $tud% the con$ume#$ "ie5 #e)a#din) the #o e o' & a$tic mone% and eca$h in the Pa%ment $%$tem9 09 To com&a#e the u$a)e o' ATM7 ,ebit Ca#d and C#edit Ca#d9 .9 To e$timate the 'utu#e o' & a$tic mone% and e ca$h9

RESEARCH METHO,OLO>Y

)&S&A)C2 M&T2O'O%O(/

SAMPLIN> METHO,E- Jud)menta method o' Sam& in) i$ bein) u$ed9 SAMPLE SINEE-433 SAMPLIN> AREAE-Chandi)a#h SAMPLIN> !NITE-Cu$tome#$ "i$ited at ,han a:mi ban6 and S+I METHO, O* ,ATA COLLECTIONE-*o# co ection o' data &#ima#% a$ 5e a$ $econda#% data i$ bein) u$ed9 INSTR!MENTSE-Dhich i$ ado&ted 'o# the P#ima#% data co ection i$ (ue$tionnai#e and 'o# $econda#% data a#e Inte#net7 Ma)a8ine7 and +oo6$9 ,ATA ANALYSIS TOOLSE - Pe#centa)e$ +a# Cha#t$9

,ATA ANALYSIS AN, INTERPRETATION

1. A5a#ene$$ #e ated to & a$tic mone% and e-ca$h.

ANALYSISE-Acco#din) to abo"e )#a&h ma:imum no9 o' &e#$on$ a#e a5a#e o' & a$tic mone% and e-ca$h9 It indicate$ that India i$ a $o in ine 5ith de"e o&in) count#ie$9

19 Iind$ o' & a$tic mone% u$ed b% #e$&ondent$9

A#A%/S+SE-Acco#din) to abo"e )#a&h Re$&ondent$ &#e'e# u$in) ,ebit ca#d in$tead o' C#edit ca#d ATM$ a#e a $o mo#e im&o#tant than C#edit ca#d 9The #ea$on behind thi$ i$ that mo$t % Re$&ondent$ be ie"e in debt e$$ t#an$action$9In ca$e o' debit ca#d 5hen the cu$tome# ma6e a &u#cha$e and &#e$ent the ca#d to the me#chant the &u#cha$e amount i$ automatica % debited to the account o' ca#d ho de#9but in ca$e o' C#edit ca#d a hi)h #ate o' inte#e$t i$ cha#)ed 'o# de a%ed &a%ment9

/9 Ho5 o'ten do %ou u$e %ou# ca#dO

A#A%/S+SE-The abo"e )#a&h $ho5 that .-G #e$&ondent$ u$e it 5ee6 % /2G#e$&ondent$ u$e it month % and on % .G #e$&ondent$ u$e it dai % it indicate the inc#ea$in) im&o#tance o' & a$tic mone% and e-ca$h in e"e#%oneJ$ i'e9 And a $o indicate the inc#ea$in) &o&u a#it% o' & a$tic mone% and e-ca$h in the &#e$ent $ociet%9

09 About im&o#tant #o e o' & a$tic mone% and e ca$h in de"e o&in) the econom% o' India9

A#A%/S+S,-Abo"e )#a&h $ho5 that -@G #e$&ondent$ a#e 'ee in) that & a$tic mone% and e-ca$h a#e & a%in) "e#% im&o#tant #o e in the Pa%ment $%$tem9 And on % 1G#e$&ondent$ a#e $a%in) that it i$ not & a%in) an im&o#tant #o e in the Pa%ment $%$tem9 C#edit H ,ebit ca#d$ a#e bein) 5ide % u$ed in the count#% a$ the% &#o"ide a con"enient 'o#m o' ma6in) &a%ment$ 'o# )ood$ and $e#"ice$ 5ithout the u$e o' che(ue$ and ca$h9 +an6$ i$$ue c#edit ca#d$ to thei# cu$tome#$9 The me#chant e$tab i$hment 5ho acce&t$ c#edit H debit ca#d &a%ment$ 5i c aim the amount '#om the cu$tome#J$

ban6 th#ou)h hi$ o5n ban69 C#edit H ,ebit ca#d$ ha"e ma6e a t#an$action$ 'a$t9

.9 Sati$'action #e ated to $ecu#it% o' & a$tic mone% and e-ca$h9

A#A%/S+S,-Acco#din) to the abo"e )#a&h @3G #e$&ondent$ 'ee that & a$tic mone% and e-ca$h a#e $ecu#e 5hi e 13G doe$ not 'ee it $ecu#e9 A$ $ome han6e#in) o' ca$h i$ done th#ou)h ATM and ,ebit ca#d but C#edit ca#d$ a#e $ome ho5 e$$ &#one to thi$ han6e#in) Re$&ondent$ 'ee $ecu#it% becau$e o' the't and mi$u$e o' thei# amount9

29 *o# 5hat &u#&o$e & a$tic mone% i$ u$ed b% the #e$&ondent$9

A#A%/S+S E-Acco#din) to abo"e )#a&h ..G #e$&ondent$ u$e & a$tic mone% and e-ca$h 'o# $ho&&in) &u#&o$e912G 'o# bi &a%ment and 0G u$e it a$ a &et#o ca#d and 4.G u$e it 'o# anothe# &u#&o$e$ 9 becau$e it i$ (uite ea$% to ca##% and con"enient a$ no one need to ca##% chec6 boo6 and hu)e hea&$ o' cu##enc% note$

A9 Ha"e %ou e"e# 'e t that & a$tic mone% i$ much $a'e# than ho din) mone% In &oc6etO

A#A%/S+SE- The abo"e )#a&h indicate that .AG #e$&ondent$ 'ee mo$t i6e % that & a$tic mone% i$ much $a'e# than ho din) mone% in

ca$h and on % 4-G #e$&ondent$ 'ee it i$ a 5a%$ $a'e#9 It #e' ect$ that in$ecu#it% ie$ in the u$e o' & a$tic mone% and e-ca$h9

@9 E:tent o' $ati$'action #e ated to & a$tic mone% and e-ca$h amon)$t the #e$&ondent$9

A#A%/S+S :-According to above graph only 44% persons are highly satisfied with plastic money and e-cash .The satisfaction level of the remaining 42%, 1 %,1% respondents are average ,somewhat and low respectively .!t is beca"se of the insec"rity related to plastic money and e-cash.

-9 *eatu#e$ i6ed b% the #e$&ondent$ in & a$tic mone%9

A#A%/S+SE-Abo"e )#a&h $ho5 that & a$tic mone% i$ an ea$% mone% becau$e the% a#e not #e(ui#ed to )o to the ban6 in ca$e eme#)encie$ 9 ,ebit Ca#d and C#edit Ca#d a#e (uite ea$% to ca##% and con"enient a$ no one need to ca##% chec6 boo6 and hu)e hea&$ o' cu##enc% note$ in ca$e o' t#a"e in) ab#oad7 ma6in) &a%ment o' bi $ in hote $ and in ca$e o' bu%in) an ai# tic6et9

439*utu#e o' & a$tic mone% and e ca$h9

ANALYSISE-Acco#din) to abo"e )#a&h ma:imum @1G #e$&ondent$ 'ee that & a$tic mone% and e-ca$h a#e hi)h % demanded in the 'utu#e9

449,o %ou i6e to u$e it in the 'utu#eO

A#A%/S+S,- Abo"e )#a&h $ho5 that ma:imum #e$&ondent$ @4G i6e to u$e it in the 'utu#e it indicate that the 'utu#e o' & a$tic mone% and e-ca$h i$ b#i)ht9

*IN,IN>S O* THE ST!,Y

*+#'+#(S,-

4< Re$&ondent$ a#e a5a#e o' both & a$tic mone% and e-ca$h but &eo& e be o5 &o"e#t% ine 5he#e not a5a#e o' thi$ $e#"ice a$ the% a#e not ab e to a''o#d thi$ &a#ticu a# $e#"ice9 1< P a$tic mone% i$ u$ed mo#e a$ com&a#ed to e-ca$h9 /< Re$&ondent$ &#e'e# to u$e ,ebit ca#d a$ com&a#ed to c#edit ca#d and ATM9 0< Re$&ondent$ hi)h % 'ee that & a$tic mone% and e-ca$h a#e & a%in) im&o#tant #o e in de"e o&ment o' Indian econom%9 .< Mo$t % #e$&ondent$ &#e'e# to u$e & a$tic mone% and e-ca$h becau$e the% 'ee that both a#e $ecu#e but 'e5 $a% that it=$ in$ecu#e e"en i' the% a#e u$in) it9 2< Re$&ondent$ u$e & a$tic mone% becau$e it i$ ea$% to u$e t%&e o' mone% and con"enient to u$e and the% mo$t % u$e it 'o# $ho&&in) &u#&o$e9 A< Re$&ondent$ a#e hi)h % $ati$'ied 5ith & a$tic mone% and e-ca$h9 @< Acco#din) to #e$&ondent$ 'utu#e o' both & a$tic mone% and e-ca$h 5i be hi)h % demanded9

S!>>ESTIONS

SU((&ST+O#S
49 Mo#e ATM$ $hou d be o&ened u& i6e on hi)h 5a%$7 in &et#o $tation$ in $ho&&in) ma $ 'o# the con"enience o' &eo& e9

19 Acco#din) to the $tud% the 'utu#e & a$tic mone% and e-ca$h i$ b#i)ht but it can be enhanced on % i' han6e#in) tota % di$a&&ea#$9 I' han6e#in) 6e&t a#i$in) than one da% & a$tic mone% and e-ca$h 5i be con$ide#ed tota % in $ecu#e mode o' &a%ment9 /9 !$e o' $ma#t ca#d $hou d a $o be encou#a)ed in India 5hich 5i de'inite % be con$ide#ed a$ one o' the boom in ou# count#%7 it 5i )i"e com&etition to debit and c#edit ca#d a$ $ma#t ca#d $ a#e a in one ca#d and it ha"e $ecu#it% $%$tem bui d in$ide the chi& o' the ca#d9 09 +an6 ha"e to &ut e''o#t$ $o that e"e#% ban6 cu$tome# 5i a"ai thi$ 'aci it% o' & a$tic mone%9 The% ha"e to minimi8e the amount cha#)e to a"ai c#edit and debit ca#d9 .9 +an6 cu$tome# ha"e to come 'o#5a#d to unde#$tand the ad"anta)e$ o' u$in) & a$tic mone% and #emain '#ee '#om ha"in) bu 6% &u#$e in &oc6et

LIMITATIONS O* THE ST!,Y

%+M+TAT+O#S
1. Time a"ai ab e 5ith the cu$tome#$ 5a$ e$$9

19 The% 5e#e not 5i in) to 'i the (ue$tionnai#e9

7U&ST+##A+)&
1. A#e %ou a5a#e o' & a$tic mone% and e ca$hO Ye$ ; < No ; <

2. Dhich 6ind o' mone% %ou a#e u$in)O ATM ; < CRE,IT CAR, ; < ,E+IT CAR, ; <

3. ,o %ou thin6 & a$tic mone% and e ca$h & a%in) an im&o#tant #o e in the de"e o&ment o' the count#%O Ye$ ; < No ; <

4. A#e %ou $ati$'ied 5ith the $ecu#it% o' & a$tic mone% and e ca$hO Ye$ ; < No ; <

5. *o# 5hat &u#&o$e do %ou u$e & a$tic mone%O Sho&&in) ; < Pet#o Ca#d; < +i Pa%ment; < An% Othe#; <

6. To 5hat e:tent a#e %ou $ati$'ied 5ith & a$tic mone% and e-ca$hO Hi)h % Sati$'ied ; < Some Dhat; < Sati$'ied; < Not Sati$'ied; <

7. Ho5 o'ten do %ou u$e %ou# ca#dO ,ai % ; < Dee6 % ; < Month %; <

8. Dhich 'o o5in) 'eatu#e$ do %ou i6e in & a$tic mone%O Con"enient ; < Ea$% Mone% ; < Othe#$ ; < 10Hou#$ *aci it% ; < He & Line; <

9. Acco#din) to %ou 5hat i$ the 'utu#e o' & a$tic mone% and e ca$hO Hi)h ,emand; < Lo5 ,emand; < Re$t#icted A#ea; <

10.

,o %ou i6e to u$e it in the 'utu#eO Ye$; < No; <

11. Ha"e %ou e"e# 'e t that & a$tic mone% i$ much $a'e# then ho din) mone% in &oc6etO A 5a%$; < Mo$t i6e %; < Sometime$; < Ne"e#; <