REPORT ON PLASTIC MONEY

A Project submitted in partial fulfillment for the requirements for the degree of Bachelor
of Commerce (Honours)

GUIDED BY

SUBMITTED BY

FACULTY GUIDE:
MRS. VIBHUTI

RUHI RANJAN
B.COM(H) 81

KAMLA NEHRU COLLEGE, DELHI UNIVERSITY

NEW DELHI

ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to my reverend guide who through his
benevolent guidance has enabled me accomplish my project. Mrs. Vibhuti has been great
source of inspiration to me, all the way. Without his keen interest, incessant,
encouragement and invaluable suggestions this report could not have attained its present
shape with zeal and enthusiasm.
I wish to express my deep sense of gratitude to my guide who through her guidance has
enabled me to accomplish my project. Ms. Vibhuti Vasishth has been a great source of
inspiration to me, all the way.

RUHI RANJAN
Please see what have you written

DECLARATION

I hereby declare that project report entitled Report on Plastic Money submitted to
University of Delhi is a record of an original work done by me under the guidance of
Mrs. Vibhuti Vasishth, Department of Commerce, Kamala Nehru College, University of
Delhi.
This project has not been submitted for any Degree or Diploma, associated-ship
fellowship or the likes.

NAMERUHI RANJAN
B.COM (HONS..WRITE HONOURS)

concept

Page. no

1.

Introduction

2.

Types of plastic
money
Credit card
Introduction
Advantage &
Disadvantages
Steps in credit
card
transaction
Different types
of credit cards
Credit card
data

Debit card

Introduction

Types of debit

6
7
8

card systems
Benefits &
Features of
debit cards
Process debit
card
transactions
Plastic fraud
Advantages
&Disadvantage
Technology
&Infrastructure
4

Merits & Demerits

Case study
Conclusion
3.

Bibliography

4.
5.
6.
7.

CONTENTS

INTRODUCTION
What is this? Where are contents

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 1950s and is now an essential
form of ready money which reduces the risk of handling large amount of cash. It includes
debit cards, ATMs, smart cards etc. Credit cards, variants of plastic money, are used as
substitute for currency.
The recent growth in the use of plastic money 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. Initially positioned as a status symbol these plastic cards
have caught on in a big way amongst the educated population of the country.
Spending pattern through plastic money will haschanged drastically. Travelling, dining
and jewellery are the top three purchases that Indians make through credit cards. Two
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 is rising 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 have 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 India market in accommodating numerous credit card competitors operating
on the circuit, ensuring healthy and competitive card business deals

1.

Introduction

2.

Types of plastic money

Credit card
Introduction
Advantage & Disadvantages
Steps in credit card transaction
Different types of credit cards
Credit card data
Debit card
Introduction
Types of debit card systems
Benefits&Features of debit cards
Process debit card transactions
Plastic fraud

3.

Advantages &Disadvantage

4.

Technology &Infrastructure

5.

Merits & Demerits

6.

Case study

7.

Conclusion
Bibliography

Sr.

Chapter 1
INTRODUCTION
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 1950s and is now an
essential form of ready money which reduces the risk of handling large amount of
cash. It includes debit cards, ATMs, smart cards etc. Credit cards, variants of plastic
money, are used as substitute for currency.
The recent growth in the use of plastic money 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. Initially positioned as a status symbol
these plastic cards have caught on in a big way amongst the educated population of
the country.
Spending pattern through plastic money will has changed drastically. Travelling,
dining and jewellery are the top three purchases that Indians make through credit
cards. Two 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 is rising 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 have 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.

10

Ch 2 types of
CHAPTER1
CREDIT CARD
INTRODUCTION:A credit card is a small plastic card issued to users as a system of payment. 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 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. Usage of the term "credit card" to imply a
credit card account is a metonym.

When a purchase is made the user would indicate consent to pay by signing a
receipt with a record of the card details and indicating the amount to be paid. Issuer
agrees to pay the merchant and the credit card user agrees to pay the card issuer.

DEFINITION:The credit card can be defined as A small plastic card that allows its
holder to buy goods and services on credit and to pay at fixed intervals through the
card issuing agency

11

MEANING:A credit card is a card or mechanism which enables card holder to purchase
goods, travels and dine in a hotel without making immediate payments. The holders
can use the cards to get credit from banks up to 45 days.
The credit card relieves the consumers from the botheration of carrying cash
and ensures safety. It is a convenience of extended credit without formality. Thus
credit card is a passport to, safety, convenience, prestige and credit.

12

FIRST CREDIT CARD INTRODUCE

13

FIRST CREDIT CARD INTRODUCE

14

ADVANTAGES & DISADVANTAGES OF

CREDIT CARD
ADVANTAGES OF CREDIT CARD
The benefits of credit card can be grouped as follows:

A) BENEFITS TO THE BANK

B) BENEFITS TO THE CUSTOMERS

(CARD HOLDER)
C) BENEFITS TO THE RETAILER

(A) BENEFITS TO THE BANK

a) A credit card is an integral part of banks major services these days. The credit
card provides the following advantages to the bank:

the system provides an

opportunity to the bank to attract new potential costumers.

b) To get new customers the bank has to employee special trained staff. This gives
the bank an opportunity to find the latent talent from among existing staff that
would have been otherwise wasted.
c) The more important function of a credit card, however, is simply to yield direct
profit for the bank. There is a scope and a potential for a better profitability out of
income / commission earned from the traders turn over.
d) This also provides additional customer services to the existing clients. It enhances
the customer satisfaction.

15

e) More use by the car holder and consequently the growth of banking habits in
general.
f) Better network of card holders and increased use of cards means higher
popularity and image of the bank
g) Savings of expense on cash holdings, i.e. stationery, printing and man power to
handle clearing transactions while considerably is reduced. It increases
(B) BENEFITS TO CARD HOLDER
The principal benefits to a card holder are:
a) He can purchase goods and services at a large number of outlets without cash or
cheque.The card is useful in emergency, and can save embarrassment.
b) The risk factor of carrying and storing cash is avoided. It is convenient for him to
carry credit card and he has trouble free travel and may purchase his without
carrying cash or cheque.
c) Months purchases can be settled with a single remittance, thus, tending to reduce
bank and handling charges.
d) The card holder has the period of free credit usually between 30-50 days of
purchase
e) Cash can usually be obtained with the card, either on card account or by using it
as identification when encasings a cheque at the bank.
f) Availing credit with minimum formality.

16

g) The credit card saves trouble and paper work to traveling business man.

(C) BENEFITS TO THE MERCHANT ESTABLISHMENT

The principal benefits offer credit card to the retailer is
a) This will carry prestigious weight to the outlets.
b) Increases in sale because of increased purchasing power of the cardholder due to
unbilled credit available to the card holder.
c) The retailers gain from the impulse buying and trading up the tendency to buy
the bigger or better article
d) Credit card ensures timely and certainly of payments.
e)Suppliers/sellers no longer have to send reminders of outstanding debits.
f) Systematic accounting since sales receipts are routed through banking channels.
g) Advertising and promotional support on national scale.
h) Development of prestigious clientele base.

DISADVANTAGES OF CREDIT CARD:The following are the common disadvantages of the credit card:
a) Some credit card transactions take longer time than cash transactions because of
various formalities. explain

17

b) The customer tends to overspend out ofwhat is this?immerse happiness.

c) Discounts and rebates can rarely be obtained.
d) The cardholder is responsible for charges due to loss or theft of the card and the
bank may not be party for loss due to fraud or collusion of staff, etc
e) Customers may be denied cash discount for payment through card.
f) It might lead to spending habits and cardholders may end up in big debts
i) what is this?Avoid the entire cost and security problem involved in handling cash.
j)not understoodLosses to bad debts and reduced an additional liquidity is
k) not understoodIt also allows him to delegate spending power to add on members
l) how is it a disadv?Credit card is considered as a status symbol.
This is not making any senseMARKETING STRATEGIES
American companies spend billions of dollars each year on marketing. As a
matter of fact, in 2001, U.S. advertising expenditures alone topped $230 billion,
more
than
doubling
the
$105.97
billion
spent
in
1980.
(Source: "Advertising: Exposure and Statistics
November 2003 newsletter of the Media Education Foundation)
Now, these figures may seem staggering to the independent professional on a
budget, but dont panic; there are lots of effective strategies you can utilize that will
help you grow your business fast. Here are some of my favorites:
Identify your niche.
One of the easiest ways to attract customers is to figure out which group of
prospective customers you get your very best results for and go after them
exclusively. Many professionals are afraid to do this claiming that theyll be leaving
someone out, but many marketing experts agree that niche marketing as the easiest
and
fastest way to get business.

Position yourself as an expert.

18

Why? Experts make more money and get more media attention and thats
free advertising! Lets face it; its easier to trust a specialist than a generalist whos
trying to be everything to everyone. Once youve identified your niche, let the world
know about how you can help. Provide free information products, write articles and
white papers about the problems your clients face and how they can solve them.
Conduct workshops, seminars and tele-classes specifically geared towards
helping your prospective customers and before long youll be regarded as an expert
in your field. And, while youre at it dont forget to, collect names, emails and
addresses of prospects to keep filling your pipeline.
Develop ongoing relationships with complementary professionals and build your
referral team.
These are other professionals who sell non-competing services or products to
the same niche customers you are targeting. For instance, my clients often need the
services of bookkeepers, accountants and business attorneys. Likewise, they refer
business to me. Here are a couple of other examples:
Residential realtor, mortgage broker, real estate attorney, home improvement
contractor,
architect
and
interior
designer.

Commercial

printer,

copywriter,

graphic

designer.

Institute a system to keep track of all of the people who are interested in your
product or services, and find creative ways of keeping in touch with them on a
regular basis.
To start, go through your notes. Put together a list of all of the people youve
spoken to in the last 6-9 months whove showed interest in you but havent become
paying customers. Follow up with them in a variety of ways: call them to touch base,
use email, ask them to subscribe to a newsletter, send them interesting articles, or
invite them to join you at events. It takes numerous impressions to make the sale;
thats why you see commercials on TV over and over again for the same products.
By Keeping track of all of the people whove showed interest and keeping your
business on their radar screen youll turn more of them into paying customers.
Let your satisfied customers help you sell your products or services.
Here

are

couple

of

ways

to

do

this:

Ask them for referrals - right away (if you were a car salesman you wouldnt wait
for
the
new
car
to
get
dirty
and
dented!)

19

 Ask them to write testimonials for you, (also right away) and compile a list of
testimonials to use in your all of your marketing collateral.
Create a marketing calendar and keep to it consistently.
Scheduling marketing activities that take place weekly, bi monthly, monthly
and quarterly will help you to avoid the feast or famine syndrome that most
independent professionals fall prey to. And, by doing so, marketing will become
easier since it becomes a regular part of your business life.
Identify innovative ways to get more business from existing customers.
Its much easier to get business from customers who are already happy with
your services or products. So develop additional services or products to keep
customers coming back for more.

THE
MECHANICS
CREDIT CARD TRANSACTION

OF

Card transactions are processed through a chain of connected parties. The

five primary parties involved in processing a Visa or MasterCard credit card
transaction are:
1.
2.
3.
4.
5.

THE CARD HOLDER

THE CARD ISSUER
THE MERCHANT
THE ACQUIRE
THE CARD ASSOCIATION

The card issuer is the bank that issues the credit card to the cardholder.
The merchant acquirer, often a bank, processes transactions on behalf of the
merchant. "Card Association" is another term used to describe Visa and
MasterCard.
The use of a card involves an exchange of value between a consumer and
a business. The card represents an offer for payment in exchange for the
20

merchants goods or services. The sales draft itself is the cardholders

promise to pay. When an acquirer accepts a draft from merchants, the bank
is buying the value represented by the draft and paying the merchant the face
value of that sales draft. Collecting payment through the interchange
systems is a two-part process

1. Clearing:
During the clearing process the acquirer provides the appropriate
issuer with information on the sale. No money is exchange during clearing.
Clearing involves the exchange of data only. The acquirer provides data
required to identify the cardholders account and provide the dollar amount
of the sales. When the issuing bank gets this data, the bank posts the amount
of the sale as a draw against the cardholders available credit and prepares to
send payment to the acquirer.

2. Settlement:
The second step is the actual exchange of funds. The issuer sends a
record of money that is being transferred from its account to that of the
acquirer. From this account the acquirer pays the merchant. Funds are
settled between issuers and acquirers through accounts with large banks that
are members of the Federal Reserve System and have been selected for that
purpose. Payments to merchants are made usually through the Federal
Reserves Automated Clearing House (the ACH) which is an electronic
funds transfer system.

3. Transaction Processing
Transaction processing involves front-end processing and back-end
processing: Front-end processinginvolves authorization and data capture
servicesand message connections via various communication networks to
pint ofsale devices.

21

Back-end processingprovides financial accounting for acquirers and issuers

and prepares and submits clearing and settlement data into the Visa and
MasterCard interchange networks.

1. Front End Processing

Authorization is the acknowledgement by the issuer that a
particular account may be charged for the amount of the sale. The preferred
method to obtain an authorization and the one that will receive the lower
interchange rate is to swipe a cards magnetic strip through the point of sale
terminals card reader. If the card cannot be electronically read by the
terminal for any reason, the information may be keyed into the terminal in
order to get an electronic response. The request is then routed through the
processors VAP or MIP to the issuers authorization center. The response is
returned to the merchants terminal. The terminal records the response code
which becomes part of the transaction and is included in the clearing data
sent through interchange to the issuer
Authorization may also be obtain through other methods such as voice
authorization. The merchant can call an 800 number to verbally provide
cardholder information and receive an operators response. Other methods
such as electronically generated audio responses (ARU) that permit the
merchant to use the telephone like a key pad to enter sale information can

22

also be used. If for any reason the issuer or its authorization center cannot
be reached, the card Associations will act as stand-in processors to provide
authorizations.

Electronic Draft Capture

Draft capture is the process of transferring sales draft data into
electronic format so that it may be sent through the interchange networks for
clearing and settlement. Data identifying the cardholder account and
expiration date is put into the point of sales terminal, either by swiping the
card thorough a card reader or manually keying the information into the
terminals keypad. The amount of the sales is then entered and an
authorization requested. Once an authorization code has been received, the
terminal is prompted to store data on the completed sale in its memory.
.

2. Back-End Processing
Back-end processing involves the various accounting functions that
enable transactions to be recorded to the proper merchant or cardholder
account. During back-end processing reports are created for distribution to
the acquirers that include:
23

1) Settlement data
2) Security/fraud data
3) Retrieval/chargeback data
4) Funds disbursements data
Transactions for internet and other card not present environments
work similarly but can have additional processing steps. Both Visa and
MasterCard have Internet authentication programs (not to be confused with
authorization) named Verified by Visa (By) and MasterCard Secure Code
(MCSC) that do alter the transaction process somewhat. If the cardholder is
registered with one of these programs, they must provide a pre-registered
password at the time of purchase. This password is then passed along as part
of the information flow of the transaction (these programs and other
techniques for controlling fraud are discussed in more detail later in this
section).
Visa and MasterCard offer both signature debit and credit cards to
consumers. The primary difference between signature debit transactions and
credit transactions are that debit cards are linked to a bank account.
Rather than offering the cardholder 30 days of float and the option to finance
ongoing balances, debit cards simply debit the cardholders bank account for
authorized purchases. Signature debit transactions (which are sometimes
also referred to as offline debit, a misleading reference and not to be
confused with an offline EFT debit transaction) are different from PIN debit
transactions in that the transaction does not involve use of a PIN number at
the time of purchase. PIN transactions also are processed on entirely
different networks referred to as EFT networks and are discussed in Section
IV.

24

25

CREDIT CARD OPERATIONS OF BANK

RBI Guidelines
Pursuant to the announcement made in the Annual Policy Statement
2004-05, the Reserve Bank of India had constituted a Working Group on
Regulatory Mechanism for Cards. The Group has suggested various
regulatory measures aimed at encouraging growth of credit cards in a safe,
secure and efficient manner as well as to ensure that the rules, regulations,
standards and practices of the card issuing banks are in alignment with the
best customer practices. The following guidelines on credit card operations
of banks have been framed based on the recommendations of the Group as
also the feedback received from the members of the public, card issuing
banks and others. All the credit card issuing banks / NBFCs should
implement these guidelines immediately.
Each bank / NBFC must have a well documented policy and a Fair
Practices Code for credit card operations. In March 2005, the IBA released a
Fair Practices Code for credit card operations which could be adopted by
banks / NBFCs. The bank / NBFC's Fair Practice Code should, at a
minimum, incorporate the relevant guidelines contained in this circular.

Guidelines
1.

for

Implementation

Issue

of

cards

a) Banks / NBFCs should independently assess the credit risk while issuing
cards to persons, especially to students and others with no independent
financial means. Add-on cards i.e. those that are subsidiary to the principal
card, may be issued with the clear understanding that the liability will be that
of
the
principal
cardholder.
b) As holding several credit cards enhances the total credit available to any
consumer, banks / NBFCs should assess the credit limit for a credit card
customer having regard to the limits enjoyed by the cardholder from other

26

banks

on

the

basis

of

self

declaration/

credit

information.

c) The card issuing banks / NBFCs would be solely responsible for

fulfillment of all KYC requirements, even where DSAs / DMAs or other
agents
solicit
business
on
their
behalf.
d) While issuing cards, the terms and conditions for issue and usage of a
credit card should be mentioned in clear and simple language (preferably in
English, Hindi and the local language) comprehensible to a card user. The
Most Important Terms and Conditions (MITCs) termed as standard set of
conditions, as given in the Appendix, should be highlighted and advertised/
sent separately to the prospective customer/ customers at all the stages i.e.
during marketing, at the time of application, at the acceptance stage
(welcome kit) and in important subsequent communications

2.

Interest

rates

and

other

charges

a) Card issuers should ensure that there is no delay in dispatching bills and
the customer has sufficient number of days (at least one fortnight) for
making payment before the interest starts getting charged.
b) Card issuers should quote annualized percentage rates (APR) on card
products (separately for retail purchase and for cash advance, if different).
The method of calculation of APR should be given with a couple of
examples for better comprehension. The APR charged and the annual fee
should be shown with equal prominence. The late payment charges,
including the method of calculation of such charges and the number of days,
should be prominently indicated. The manner in which the outstanding
unpaid amount will be included for calculation of interest should also be
specifically shown with
Prominence in all monthly statements. Even where the minimum amount
indicated to keep the card valid has been paid, it should be indicated in bold
letters that the interest will be charged on the amount due after the due date
of payment. These aspects may be shown in the Welcome Kit in addition to
being
shown
in
the
monthly
statement.
c) The bank / NBFC should not levy any charge that was not explicitly
indicated to the credit card holder at the time of issue of the card and getting
his / her consent. However, this would not be applicable to charges like
service taxes, etc. which may subsequently be levied by the Government or
27

any

other

statutory

authority.

d) The terms and conditions for payment of credit card dues, including the
minimum payment due, should be stipulated so as to ensure that there is no
negative
amortization.
e) Changes in charges (other than interest) may be made only with
prospective effect giving notice of at least one month. If a credit card holder
desires to surrender his credit card on account of any change in credit card
charges to his disadvantage, he may be permitted to do so without the bank
levying any extra charge for such closure

3.

Wrongful

billing

a) The card issuing bank / NBFC should ensure that wrong bills are not
raised and issued to customers. In case, a customer protests any bill, the
bank / NBFC should provide explanation and, if necessary, documentary
evidence to the customer within a maximum period of sixty days with a
28

spirit

to

amicably

redress

the

grievances.

b) To obviate frequent complaints of delayed billing, the credit card issuing

bank / NBFC may consider providing bills and statements of accounts
online,
with
suitable
security
built
therefore.

4.

Use

of

DSAs

DMAs

and

other

agents

a) when banks / NBFCs outsource the various credit card operations, they
have to be extremely careful that the appointment of such service providers
does not compromise with the quality of the customer service and the bank /
NBFCs ability to manage credit, liquidity and operational risks. In the
choice of the service provider, the bank / NBFCs have to be guided by the
need to ensure confidentiality of the customers records, respect customer
privacy, and adhere to fair practices in debt collection.
b) The Code of Conduct for Direct Sales Agents (DSAs) formulated by the
Indian Banks Association (IBA) could be used by banks / NBFCs in
formulating their own codes for the purpose. The bank / NBFC should
ensure that the DSAs engaged by them for marketing their credit card
products scrupulously adhere to the bank / NBFCs own Code of Conduct
for credit card operations which should be displayed on the bank / NBFCs
website and be available easily to any credit card holder.
c) The bank / NBFC should have a system of random checks and mystery
shopping to ensure that their agents have been properly briefed and trained
in order to handle with care and caution their responsibilities, particularly in
the aspects included in these guidelines like soliciting customers, hours for
calling, privacy of customer information, conveying the correct terms and
conditions of the product on offer, etc.

29

Protection

of

Customer

Rights

Customers rights in relation to credit card operations primarily relate

to personal privacy, clarity relating to rights and obligations, preservation of
customer records, maintaining confidentiality of customer information and
fair practices in debt collection. The card issuing bank / NBFC would be
responsible as the principal for all acts of omission or commission of their
agents (DSAs / DMAs and recovery agents).

I.

Right

to

privacy

a) unsolicited cards should not be issued. In case, an unsolicited card is

issued and activated without the consent of the recipient and the latter is
billed for the same, the card issuing bank / NBFC shall not only reverse the
charges forthwith, but also pay a penalty without demur to the recipient
amounting to twice the value of the charges reversed.
b) Unsolicited loans or other credit facilities should not be offered to the
credit card customers. In case, an unsolicited credit facility is extended
without the consent of the recipient and the latter objects to the same, the
credit sanctioning bank / NBFC shall not only withdraw the credit limit, but
also be liable to pay such penalty as may be considered appropriate
c) The card issuing bank / NBFC should not unilaterally upgrade credit cards
and enhance credit limits. Prior consent of the borrower should invariably be
taken whenever there is any change/s in terms and conditions.
d) The card issuing bank / NBFC should maintain a Do Not Call Registry
(DNCR) containing the phone numbers (both cell phones and land phones)
of customers as well as non-customers (non-constituents) who have
informed the bank / NBFC that they do not wish to receive unsolicited calls /
SMS for marketing of its credit card products. The DNCR should be set up

30

within two (2) months from the date of this circular and wide publicity
should be given to the arrangement
e) The intimation for including an individuals telephone number in the Do
Not Call Registry (DNCR) should be facilitated through a website
maintained by the bank / NBFC or on the basis of a letter received from such
a person addressed to the bank / NBFC.
f) The card issuing bank / NBFC should introduce a system whereby the
DSAs/ DMAs as well as its CallCenters have to first submit to the bank /
NBFC a list of numbers they intend to call for marketing purposes. The bank
/ NBFC should then refer to the Do Not Call Registry (DNCR) and only
those numbers which do not figure in the Registry should be cleared for
calling.

g) The numbers cleared by the card issuing bank / NBFC for calling should
only be accessed. The bank / NBFC would be held responsible if a Do Not
Call Number (DNCN) is called on by its DSAs / DMAs or Call Centre/s.
h) The card issuing bank / NBFC should ensure that the Do Not Call
Registry (DNCR) numbers are not passed on to any unauthorized person/s or
misused
in
any
manner.
I.)Banks / NBFCs/ their agents should not resort to invasion of privacy viz.,
persistently bothering the card holders at odd hours, violation of "do not
call"

31

(ii)

Customer

confidentiality

a) The card issuing bank / NBFC should not reveal any information relating
to customers obtained at the time of opening the account or issuing the credit
card to any other person or organization without obtaining their specific
consent, as regards the purpose/s for which the information will be used and
the organizations with whom the information will be shared. Banks / NBFCs
should satisfy themselves, based on specific legal advice that the
information being sought from them is not of such nature as will violate the
provisions of the laws relating to secrecy in the transactions. Banks / NBFCs
would be solely responsible for the correctness or otherwise of the data
provided for the purpose.
B) In case of providing information relating to credit history / repayment
record of the card holder to a credit information company (specifically
authorized by RBI), the bank / NBFC may explicitly bring to the notice of
the customer that such information is being provided in terms of the Credit
Information Companies (Regulation) Act, 2005.
c) Before reporting default status of a credit card holder to the Credit
Information Bureau of India Ltd. (CIBIL) or any other credit information
Company authorized by RBI, banks / NBFCs may ensure that they adhere to
a procedure, duly approved by their Board, including issuing of sufficient
notice to such card holder about the intention to report him/ her as defaulter
to the Credit Information Company. The procedure should also cover the
notice period for such reporting as also the period within which such report
will be withdrawn in the event the customer settles his dues after having
been reported as defaulter. Banks / NBFCs should be particularly careful in
the case of cards where there are pending disputes.
The Disclosure/ release of information, particularly about the default,
should be made only after the dispute is settled as far as possible. In all
cases, a well laid down procedure should be transparently followed. These
procedures should also be transparently made known as part of MITCs

32

d) The disclosure to the DSAs / recovery agents should also be limited to

the extent that will enable them to discharge their duties. Personal
information provided by the card holder but not required for recovery
purposes should not be released by the card issuing bank / NBFC. The card
issuing bank / NBFC should ensure that the DSAs / DMAs do not transfer or
misuse any customer information during marketing of credit card products.

(iii)

Fair

Practices

in

debt

collection

a) In the matter of recovery of dues, banks / NBFCs may ensure that they, as
also their agents, adhere to the extant instructions on Fair Practice Code for
lenders (circular DBOD. Leg. No. BC. 104 /09.07.007 / 200203 dated May
5, 2003) as also IBAs Code for Collection of dues and repossession of
security. In case banks / NBFCs have their own code for collection of dues it
should, at the minimum, incorporate all the terms of IBA's Code.
b) In particular, in regard to appointment of third party agencies for debt
collection, it is essential that such agents refrain from action that could
damage the integrity and reputation of the bank / NBFC and that they
observe strict customer confidentiality. All letters issued by recovery agents
must contain the name and address of a responsible senior officer of the card
issuing bank whom the customer can contact at his location.
c) Banks / NBFCs / their agents should not resort to intimidation or
harassment of any kind, either verbal or physical, against any person in their
debt collection efforts, including acts intended to humiliate publicly or
intrude the privacy of the credit card holders family members, referees and

33

friends, making threatening and anonymous calls or making false and

misleading representations.

6.

Redresses

of

Grievances

a) generally, a time limit of sixty (60) days may be given to the customers
for
preferring
their
complaints
/
grievances.
b) The card issuing bank / NBFC should constitute Grievance Redresses
machinery within the bank / NBFC and give wide publicity about it through
electronic and print media. The name and contact number of designated
grievance redresses officer of the bank / NBFC should be mentioned on the
credit card bills. The designated officer should ensure that genuine
grievances of credit card subscribers are redressed promptly without
involving
delay.
c) The grievance redresses procedure of the bank / NBFC and the time
frame fixed for responding to the complaints should be placed on the bank /
NBFC's website. The name, designation, address and contact number of
important executives as well as the Grievance Redresses Officer of the
bank / NBFC may be displayed on the website. There should be a system of
acknowledging customers' complaints for follow up, such as complaint
number / docket number, even if the complaints are received on phone.
d) If a complainant does not get satisfactory response from the bank /
NBFC within a maximum period of thirty (30) days from the date of his
lodging the complaint, he will have the option to approach the Office of the
concerned Banking Ombudsman for redresses of his grievance/s. The bank /
NBFC shall be liable to compensate the complainant for the loss of his time,
expenses, financial loss as well as for the harassment and mental anguish
suffered by him for the fault of the
Bank and where the grievance has not been redressed in time.

7. Internal control and monitoring systems

34

With a view to ensuring that the quality of customer service is ensured

on an on-going basis in banks / NBFCs, the Standing Committee on
Customer Service in each bank / NBFC may review on a monthly basis the
credit card operations including reports of defaulters to the CIBIL, credit
card related complaints and take measures to improve the services and
ensure the orderly growth in the credit card operations. Banks / NBFCs
should put up detailed quarterly analysis of credit card related complaints to
their Top Management. Card issuing banks should have in place a suitable
monitoring mechanism to randomly check the genuineness of merchant
transactions.

8.

Right

to

impose

penalty

The Reserve Bank of India reserves the right to impose any penalty on
a bank / NBFC under the provisions of the Banking Regulation Act, 1949 for
violation of any of these guidelines.

Different Types of Credit Cards

35

Different Types of Credit Cards

Credit cars are of various types, every one has to select credit cards on
the basis of the pros and cons of each type of credit card and at the same
time the nature of use. This article gives an insight into the several types of
credit cards available in the market
Today, credit card customers enjoy more options and choices than ever
before. To gain new customers, credit card companies compete by offering
new services and cards to customers. No matter what your needs, chances
are good that there is a card out there that would be ideal for you. If you are
looking for the right card, you can begin by considering the many types of
cards available to you:

Low Interest Credit Cards

These types of credit cards offer very low interest. In some cases,
these cards just charge a few percent interests. The reasons for this are
numerous. In most cases, the low interest rate is for a limited time only.

36

After a set number of months, you will begin paying higher interest rates. In
some cases, low interest credit cards are not really credit cards at all - they
are debit cards linked to a low-interest loan such as a line of credit. Check
your agreement to find out what type of card you have. If you need to
consolidate debts or if you like the idea of having low interest for a while,
this type of credit card can be perfect for you.
Instant Approval Credit Cards
These cards are really a product of our fast-paced society. The idea
behind this type of credit card is that once you fill out your application, you
will be told whether you are approved or not right away. The approval
process only takes a few minutes. Instant approval credit cards are very
popular online and applicants can apply via the internet or over the phone.
If you are very impatient or need credit right away, these types of
cards can be for you. However, you should be aware that these cards do not
guarantee that you will be approved right away - sometimes, more time is
needed to process your application. Another drawback to these cards is that
they rely heavily on your credit score. If you have poor credit or any
extenuating financial circumstances, these types of cards may not be for you.
Balance Transfer Cards
Balance transfer cards are a type of temporary low-interest card that is
meant to help you consolidate your debt. They work this way: if you have
several credit cards with a balance, you can get a balance transfer card. You
then transfer all your credit card debt onto the new card and work to pay it
off. Since the new card has a low interest rate, you can quickly repay your
bills.
If you are in debt, a balance transfer card can be a great way to get out
of debt. It offers the convenience of one bill and low rates. However, some
cards have high fees. Also, if you run up your other cards after consolidating
your debts or if you are unable to pay off your new card in the limited time
before the low interest rate increases, you may find yourself even more in
debt than before.

Rewards Credit Cards

37

Rewards credit cards offer you points, rewards, or bonuses for

every cash purchase made with your credit card over time. As you
accumulate rewards or points, you can redeem your bonus for entertainment
events, purchases, travel, and other fun prizes. Some cards even offer
customers extra automatic-enter sweepstakes and draws. Each time you use
your card, you are entered into a draw to win specific prizes.
These types of cards are really a marketing tool for card companies.
Companies know that customers love rewards and prizes and so offer these
enticements to lure customers. The major advantage of these cards is that
they can help you get more cash value for your money. They can also be fun
and rewarding for almost any credit card customer. However, not all reward
credit cards are a deal. Some charge high fees to offset the costs of the
bonuses. Some also have very low points systems, meaning that you need to
spend a lot with your credit card to get any rewards at all. Read the fine print
carefully before signing.

Cash

Back

Credit

Cards

Cash back credit cards give you money rewards. When you make a
purchase with this type of credit card, you get some points based on the
amount of money you have spent with your credit card. When you
accumulate enough points, you get cash back. On most cards, you can get
back about 1% of your total purchases.
These cards are great for those who are budget-conscious as they give
you some money back from your purchases. However, there are several
drawbacks to these types of cards. Some cards have low cash-back
percentage rates. Some charge high fees or have limits on how much money
you can get back each year. Most cards only offer you cash back advantages
on purchases - not on your balance. If you decide this card is right for you,
do compare several card offers to find the best cash back credit card option.

Airline Credit Cards

38

This type of card allows you to accumulate frequent flyer points on all
your credit card purchases. If you travel a lot or love to travel, this card can
help you accumulate points for a free trip or for a discount ticket. In many
cases, these cards are great because they allow you to gather points for every
purchase. However, these cards can also charge high fees. In some cases,
your points will expire if you do not use them within a specified time.
Worse, some airline credit cards make use of a point system that is not very
user-friendly. You may have to slowly accumulate an enormous amount of
points to qualify for a trip. If you do not love to travel and if you do not use
your Credit card a lot, then, your ability to get rewards you like may be very
limited.

Prepaid Debit Cards

These cards are sometimes called junior credit cards. They are not
truly credit cards at all, since you are not getting credit or loans from the
credit card company. Instead, these cards work by having you deposit some
money into the card account. You can then use your card to charge any
amount up to the amount in the account. When you add more money, you
can
charge
more
to
your
card.

Secured Credit Cards

Secured credit cards use collateral to ensure that the card company
will be paid back. Often, these cards are used by people with no credit or bad
credit. With secured credit cards, you can enjoy credit card convenience
even if you do not qualify for traditional cards. However, you will also have
to cope with the additional fees and low credit limits that these credit cards
have.

Credit Cards for Bad Credit

Bad credit credit cards are designed for people with poor credit
histories. These cards generally have very low credit limits and charge extra
fees. This is because they are designed for people who are considered far
less likely to repay their debts. If you have a bad credit rating, these types of
credit cards can be a great way to rebuild your credit history. These cards
can also allow you to have credit even if you would be rejected for most
other cards due to your credit history.

Student Credit Cards

39

Student credit cards are cards meant to attract college and university
students. These cards often offer sign-up bonuses for students. They are also
easier to apply for, since credit card companies recognize that students have
much shorter credit histories than the average customer.
If you are a student, student credit cards can be a great option. They
are simple to use and can help you build a good credit rating before you
graduate. However, there are some disadvantages to student credit cards.
These cards may have no reward programs and may have fewer benefits,
including fewer bonuses and services, than other cards.

Business Credit Cards

Business credit cards are created especially for business use. They
offer many of the same advantages as traditional credit cards, but also offer
services that can really help a business. With some business credit cards, for
example, you can enjoy higher interest rates, extra cards for business
employees, monthly reports on your expenses, and services that let you keep
your personal and business expenses separate on the same card. These
advantages mean that using this card for your business is more convenient.

40

Types of Credit
Cards offered
By
Indian Banks

Types of Credit Cards offered by Indian Banks

Silver Cards

41

Silver credit cards rank lowest among the metal named cards, and,
because of lower prestige when compared to gold and platinum cards, are
commonly known as basic and standard credit cards. Silver credit cards
come with advantages such as lower annual membership fees if there is any,
and a lower threshold salary which banks use to evaluate your application in
case you should apply.
Silver credit cards will provide you with almost the same credit limit
as other cards provided you have a good credit history. You can also avail of
0% interest balance transfer schemes which are made available for a period
of 6-9 months for silver card holders.
There are also some disadvantages to using silver credit cards. One
would be the lower cash advance limits, less rewards and promotional
packages, and less travel perks compared to gold and platinum cards.
HDFC Bank, ICICI offer silver credit cards through their HDFC Bank Silver
cards and ICICI Sterling Silver credit card

Gold and Platinum Cards

Gold and platinum credit cards are a status symbol for any credit card
holder, bringing prestige since getting gold and platinum cards usually
require that you have good credit rating and a higher income levels. Gold
and platinum cards offer higher limit for cash advance withdrawals and
sometimes can provide higher credit limits as compared to standard or silver
cards.
If you have a gold or platinum card, you also get better perks and
privileges such as travel insurance, extended warranties for appliance
purchases and special deals on specific products, and purchase protection
insurance.

42

You can also engage in some loyalty schemes that are offered for gold and
platinum credit card holders which can sometimes involve cash back promos
and reward points systems.
Some popular gold and platinum cards available are the American Express
Gold card, and the ICICI Solid Gold Credit Card.
It is not possible to cover them the exact offerings of these cards but I
will highly advice you to check all these websites of the banks to get all the
info about the credit cards they are offering. Also try to talk to your friends
who are having credit cards to get more info.

CHAPTER 2
DEBIT CARD
A debit card (also known as a bank card or check card) is a plastic
card that provides an alternative payment method to cash when making
purchases. Functionally, it can be called an electronic cheque, as the funds
are withdrawn directly from either the bank account or from the remaining
balance on the card. In some cases, the cards are designed exclusively for
use on the Internet, and so there is no physical card.
In many countries the use of debit cards has become so widespread
that their volume of use has overtaken the cheque and, in some instances,
cash transactions.
Like credit cards, debit cards are used widely for telephone and
Internet purchases and, unlike credit cards, the funds are transferred
immediately from the bearer's bank account instead of having the bearer pay
back the money at a later date.
Debit cards may also allow for instant withdrawal of cash, acting as
the ATM card for withdrawing cash and as a cheque guarantee card.
Merchants may also offer cash back facilities to customers, where a
customer can withdraw cash along with their purchase.

43

Types of debit card systems

Online Debit System
Online debit cards require electronic authorization of every
transaction and the debits are reflected in the users account immediately.
The transaction may be additionally secured with the personal identification
number (PIN) authentication system and some online cards require such
authentication for every transaction, essentially becoming enhanced
automatic teller machine (ATM) cards. One difficulty in using online debit
cards is the necessity of an electronic authorization device at the point of
sale (POS) and sometimes also a separate PIN pad to enter the PIN, although
this is becoming commonplace for all card transactions in many countries.
Overall, the online debit card is generally viewed as superior to the offline
debit card because of its more secure authentication system and live status,
which alleviates problems with processing lag on transactions that may only
issue online debit cards. Some on-line debit systems are using the normal
authentication processes of Internet banking to provide real-time on-line
debit transactions. The most notable of these are Ideal and POL

Offline Debit System

Offline debit cards have the logos of major credit cards (e.g. Visa or
MasterCard) or major debit cards (e.g. Maestro in the United Kingdom and
other countries, but not the United States) and are used at the point of sale
like a credit card (with payer's signature). 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 23 days to be reflected on users
account balances. In some countries and with some banks and merchant
service organizations, a "credit" or offline debit transaction is without cost to
the purchaser beyond the face value of the transaction, while a small fee may
be charged for a "debit" or online debit transaction (although it is often
absorbed by the retailer). Other differences are that online debit purchasers
may opt to withdraw cash in addition to the amount of the debit purchase (if
the merchant supports that functionality); also, from the merchant's
44

standpoint, the merchant pays lower fees on online debit transaction as

compared to "credit" (offline) debit transaction

Electronic Purse Card System

Smart-card-based electronic 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) are in use throughout
Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick), the Netherlands (Chipknip), Belgium and Switzerland (CASH). In
Austria and Germany, all current bank cards now include electronic purses.

Prepaid Debit Card

Prepaid debit cards, also called reload able debit cards or reload able
prepaid cards, are often used for recurring payments. The payer loads funds
to the cardholder's card account. Prepaid debit cards use either the offline
debit system or the online debit system to access these funds. Particularly for
companies with a large number of payment recipients abroad, prepaid debit
cards allow the delivery of international payments without the delays and
fees associated with international checks and bank transfers. Providers
include Caxton FX prepaid cards, [ Escape prepaid cards and Travelex
prepaid cards. [ Whereas, web-based services such as stock photography
websites (stockpot), outsourced services (odes), and affiliate networks
(Media Whiz) have all started offering prepaid debit cards for their
contributors/freelancers/vendors.

45

BENEFITS OF DEBIT CARDS

The following are the benefits of the debit card services
FREE WITH OUR BANK ACCOUNT
Obtaining a debit card is easy. If we qualify to open a bank account, we
usually get a debit card, if our bank offers the service.
NO BACKGROUND CHECK
When we are applying for a debit card, the ban does not need to look into
our credit history. All we need is the documentation to open a bank, account,
and money in our bank when we use our debit card.
CASH WITHDRAWALS
The customer can withdraw a minimum of Rs. 100/- and a maximum Rs.10,
000/- per day
CONVENIENCE
A Debit card fees us from carrying a lot of cash or a cheque book. In case,
we are an international traveler, we dont need to stock up on Travelers
Cheques or cash. We can use our debit card to withdraw Cash from over
500,000 ATMs around the world in over 100 countries. We can withdraw in
the local currency of the country we are in, limited only by the money we
have back home in our account, and Business Travel Quota (BTQ) limit
arability.
FAIR EXCHANGE
If we return merchandise or cancel services paid for with a Debit card, the
transaction is treated as if it were made with cash or a check. Customers
usually get cash back for offline purchases; for on-line transactions, the
amount is credited to our account.
STATEMENT OF ACCOUNT

46

A statement of transactions can be obtained from the customers branch. For

example, a mini statement containing the last four transactions and balance
can be obtained at a State Bank Group during the working hours of the
customers branch.
BANKING CUM SHPPING CARD
Your Debit card can be used as ATM card at any ATM across the world, as
well as for making purchase at merchant locations. You can also withdraw
cash from any of the 12000 ATMs in India.
WIDELY ACCEPTED, INTERNATIONALLY VALID

FEATURES OF DEBIT CARD

The following are features of Debit cards
A) It is a combination of a Cheque and ATM card. Therefore, there are no
fees for using the ATM for cash withdrawal, or as a debit card for purchase.
B) The Debit Card services in meant for withdrawals against the balance
already available in the designated account.
C) It is the card holders obligation to maintain sufficient balance in the
designated account to meet withdrawals and service charges.
D) A Debit card is more affordable than credit card. We just our bank
account for all our transactions.
No credit period. Our bank account is debited immediately.
E) No credit check is required to get a Debit card.
F) Use of card is terminated without notice, upon the death, bankruptcy or
insolvency of the cardholder or for other valid reasons.
G) Spending is limited to our bank balance.
DRAWBACKS OF DEBIT CARDS
47

NO GRACE PERIOD
A) Unlike a credit card, debit card transactions are on a pay now basis
LIMITED PROTECTION
B) Using a debit card may mean we have less protection than we would have
with a credit card for undelivered or defective goods.
(what does this mean?)

48

49

Process of Debit Card Transactions

A successful business will usually accept debit cards as a part of their
overall profile of payment solutions. If you dont process debit cards, you
may not be taking full advantage of all the potential that your merchant
account can deliver. There are essentially two ways you can accept debit
cards, online and offline.
Off line debit card transactions
An offline debit card transaction is still the way most merchants
accept debit cards. This is essentially the same as processing credit cards.
You swipe your customers debit card through a credit card terminal and
have them sign the receipt.
If you choose to accept debit cards offline, be sure that the debit card
has a VISA or MasterCard logo. Otherwise, the debit card wont be
approved and you wont be able to process the debit card offline

Online debit card transactions

The most advantageous way to process debit cards is to do it online.
You will still be able to accept debit cards at the point of sale, but you will
need to install a PIN pad on your credit card terminal.
An online debit card transaction works much like a credit card
transaction, except that after your customer swipes his or her debit card, they
will enter a PIN instead of signing the receipt.
At this point the encrypted debit card information is sent to the
customers bank for authorization, and youll receive the funds just as you
would for a credit card transaction.
Your business has many advantages when you accept debit cards.
50

For example, you pay a flat fee for each debit card transaction that
you process, instead the flat fee plus percentage rate that you are charged
when you accept credit cards. Over time, this can potentially save you a lot
of
money.
Another advantage when you process debit cards is that you cant be
charged higher downgrade fees.
In a credit card transaction, you are usually charged the discount
rate. However, some transactions are considered to be a higher risk or
expense to the bank, and you are charged a higher rate as a result.
But when you accept debit cards, you always pay the same flat rate,
with no danger of the rate increasing.
You can also cut down on checkout time when you accept debit cards.
It takes an average of 30 seconds to hand over the pen, wait for the customer
to sign the receipt, and then take the pen back.
If you process 20 credit card transactions a day, youre losing 100
minutes a day just passing a pen back and forth! Thats almost two hours
Change languagedo not use YOU

Where has this section started from

all of a sudden
51

Plastic Fraud
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 cards and some common schemes
involving card fraud with tips to help you avoid them
The following are the types of frauds

1. Stolen Cards at the Office

2. Extra Copies of Charge Slips
3. Discarded Charge Slips
4.
5.
6.
7.
8.
9.

Unsigned Credit Cards

Loss of Multiple Cards
Strange Requests for Your PIN Numbers
Legitimate Cards
Altered Cards
Counterfeit Cards

New Technology
New technology is making it more difficult for criminals to use, alter,
or counterfeit credit and debit cards. Some of the innovations are already in
use.
These security features have been added to major credit cards:
Holograph
A three-dimensional, laser produced optical device that changes its color and
image as the card is tilted.
Fine-line printing
A repeated pattern of the card company name positioned as background for
the company logo.

52

Ultra-violet ink
Special ink that is visible only under ultra-violet light, which will display the
credit card company's logo.

Credit

Card

Data:

Credit Card is either Visa or MasterCard which is the

Most
popular
and
in
some
instance
American

Express.

The Top 10 Credit Card Issuers in India are

as follows,
ICICI
HDFC
SBI
Citibank
HSBC
ABN
Axis
Deutsche
American

Bank
Bank
Cards
Cards
Amro
Bank
Bank
Express -

Data Courtesy - The Reserve Bank of India

53

5.07
4.42
2.65
2.54
1.3
0.78
0.57
0.495
0.45

Mn
Mn
Mn
Mn
Mn
Mn
Mn
Mn
Mn

CHAPTER 5
You have not used any questionnaries
remove this
QUESTIONNARIES
1. Meaning of credit card
Credit is a privilege and a convenience. Credit lets you charge a meal on a
credit card, pay for an appliance on an installment plan, take out a loan to
buy a house, or pay for schooling. Credit allows you to make a purchase
without ready cash.
A credit card enables you to buy things now and pay for them later. You get
credit by promising to pay in the future for something you receive in the
present. Credit usually costs something, and what is borrowed must be paid
back.
2. The reason for the neediness of credit
Convenient, hassle-free shopping. When you use a credit card to make a
purchase, you don't have to carry a lot of cash, pay by check, or present
additional identification. A credit card also simplifies and speeds up catalog
ordering and currently is virtually the only way to make Internet purchases.
Emergency help. Credit cards are the ultimate financial security blanket.
They can get you through nearly any emergency situation.

Easier budgeting. With a credit card, you can make purchases and pay them
off on a schedule that fits your budget. Credit cards also allow you to take
advantage of sales and special offers.
3. Reason to establish a good credit history

54

Establishing a good credit history is an important part of your personal and

financial future. It can help open doors for you or keep them locked.
A variety of people and businesses make decisions affecting your future that
are based on your credit history. Banks and other lenders consider your
credit report when reviewing applications for mortgages, revolving lines of
credit, or other loans. Landlords sometimes use credit reports to decide
among rental applicants. And a potential employer may even assess an
applicant's credit report before extending a job offer.
4. Meaning of debit card
Debit Card is an electronic purse, which allows the holder to withdraw cash
from ATMs and also enables him to purchase goods or services from the
member establishments. Debit Cards are mostly issued in collaboration
either with VISA or MasterCard.

CONCLUSION
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 convenienence.
Technology intensive delivery channels like net banking, mobile banking,
etc have created a win-win situation by extending great convenienence. &
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 companys card personality could
55

also be used in the home page to solve customer queries in the Best
Possible Manner.

Not written properly

Discuss with me

BIBLIOGRAPHY
BOOKS

INOVATION IN BANKING & INSURANCE

FINANCIAL MARKET & SERVICES
INDIAN BANKING INDUSTRIES
INDIAN BANKING
TIMES OF INDIA NEWS PAPER (1stOCT2010)

WEBSITE

WWW.GOOGLESERCH.COM
WWW.YAHOO.COM
WWW.RBI.ORG
WWW.WIKIPEDIA .COM
WWW.INFOSEE.COM
WWW.INDIANMBA.COM
WWW.INDINBANKING.ORG

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