INTRODUCTION

Banking has evolved a long way from the days of the medieval money lenders counting coins on the bench to the present scenario, where it is hard to trace the trail of money from the beginning to the end. The trail starts right from the small saver leaving a few rupees in his local bank to the billions of rupee loans raised by a syndicate banks and financial institutions, capable of financing projects in any country in the world. Still, these banking majors are heavily dependent upon their retail home base of savers and borrowers. Most of the bankers began focusing on this retail market segment as global competition intensified in late seventies and early eighties. The debit card has emerged from the shadow of its older sibling, the credit card. Over the past decade, debit card has grown from accounting for 274 million transactions in 1990 to 8.15 billion transactions in 2002, to challenge the credit card as the preferred payment card. As it stands, the debit card industry is a multi-billion dollar engine that helps drive bank profits and point-of purchase consumer sales - but is also beginning to redefine traditional payment options in the business and government sectors, such as food stamps, benefits, and payroll. The debit card has arrived and is here to stay. And yet, though it remains poised for growth, the debit card has also reached a crossroads. A recent settlement has cost VISA and MasterCard approximately $3 billion, and has dramatically reduced the fees they can charge for signature-based debit purchases. The effects of the settlement reach into every layer of the industry - from rewards incentives, to marketing programs, to future fee arrangements, and future growth. Consumer preferences for PIN- or signature-based debit will certainly influence how things unfold, and whether either debit card option will suffer or bloom in the short, mid, or long term. Credit cards, one of the banking products that cater products to the needs of retail segment has seen its number grow in geometric progression in recent years. This growth has been

strongly supported by the development in the field of technology, without which this could not have been possible. The history of phenomenal growth in the credit cards segment traces way back to in 1950, the time when Dinar Club was established .The card provided select members with credit at 22 restaurants in New York and collected a commission for paying the bills promptly. The credit card industry got a further boost with the arrival of American express began selling their card as a prestige to hotels,restaurants,shops or airlines in America and slowly expanded the network across the world. The success of these two players attracted many other banks to join the credit card business. The entire breed of new players saw a fresh opportunity of granting unsecured loans at high interest rates to those credit cardholders who did not pay their bills on time. These banks were not so concerned with collecting commissions from shops but were thriving on high interest income from those who did not pay their bills on time. Its not that only the card numbers have increased, but even the types of cards on offer have seen a surge. Today the domestic card industry is flooded with different types of cards ranging from gold, silver, global, co-branded credit cards, smart to secure .the list is endless. Foreign banks have shouldered the major responsibility of increasing the card base and adding value-added services to the card products in the past. This is also evident from the fact that the market share of these foreign banks is estimated to be well over 70%. But the scenario has changed dramatically in the last of couple of years with the entry of State Bank of India (SBI), a domestic major in the banking sector. More and more nationalised banks and private sector banks like ICICI and HDFC Bank are aggressively launching credit card with value added features. Although at present the card market is mainly limited to Indias relatively bigger cities and tourist locations only, there is also a potential in smaller cities. Domestic banks, owing to their vast network and reach to smaller cities, can easily tap this potential. They would be better off, penetrating into smaller cities and bringing credit card to the masses rather than cannibalising other foreign banks existing cardholder base.

The efforts of these banks to increase the card base is going to be wholeheartedly supported by the residents of these smaller cities with their higher disposable income, changing lifestyle, increasing travel and the growth in the entertainment sector. Over the years, Indians have been averse to credit cards. This is primarily because they believed that spending through credit is a sure shot way of getting into the debt trap. Of course, movies highlighting the sad state of a borrower did not exactly help matters. And even the local kirana shops have the famous lines Aaj Nagad, Kal Udhari (cash today, credit tomorrow). But the situation is not actually that scary. And it is all about right timing. Credit cards can be a useful tool at the hands of savvy consumers who can effectively use the benefits offered by cards. It is important to know that credit card is a financial tool that needs to be used responsibly. While it ensures cash flow, it is not advisable for customers to borrow for a longer period of time. Use it effectively and take good advantage of the time line and clear your debts, without any additional costs. Plastic Money: the Currency of Modern India Indian consumers have never had it so good. The soiled notes are definitely out. Carrying cash is no more `a pain in the neck' as consumers are relying more on the `plastic card' which gives them money on credit. Plastic money basically means debit cards and credit cards which is having a magnetic stripe, logo, signature of the cardholder made of plastic. Credit Cards have finally arrived in India. The card industry which is growing at the rate of 20% per annum is flooded with cards ranging from gold, silver, global, smart to secure.the list is endless. From just two players in early 80s, the industry now houses over 10 major players vying for a major chunk of the card pie.

Currently four major bishops are ruling the card empire---Citibank, Standard Chartered Bank, HSBC and State Bank of India (SBI). The industry, which is catering to over 3.8 million card users, is expected to double by the fiscal 2003. According to a study conducted by State Bank of India, Citibank is the dominant player, having issued 1.5 million cards so far. Stanchart follows way behind with 0.67 million, while Hongkong Bank has 0.3 million credit card customers. Among the nationalized banks, SBI tops the list with 0.28 million cards, followed by Bank of Baroda at 0.22 million. The credit card market in India, which started out in 1981, is on the verge of an unprecedented boom. Between 1987 and 2000, the market has virtually grown to over 3.8 million cards with almost 25-30 % growth in new cardholders. SBI, one of the late entrants in the card market, has managed to grab over 8 per cent of the market share from the bigwigs like Citibank and Standard Chartered Bank. The bank's credit card business has grown by 8 per cent over the last two years. According to bank officials, SBI's card issue so far is to the tune of 0.28 million which is expected to In a bid to tap the lower middle class segment, SBI is currently sharpening its marketing The bank is putting its best foot forward to compete with global card majors like Citibank and Standard Chartered Bank. The global bigwigs have already established themselves as the `bankable brands' in the metros. However, in a bid to move to greener pastures, they are trying to tap the co-branded card market which has vast potential for growth. Citibank, which is leading the card empire recently launched a co-branded credit card in partnership with Indian Oil Corporation. The card will offer its members reward points on every international spend which can be redeemed for free fuel in India. ATM- debit cards are the flavour of the season The credit card business may have fallen short of expectations, but the debit card seems to lend issuers and payment systems a cause for hope. Plastic money is getting popular, according to a survey conducted by MasterCard international in the Asia pacific region comprising of Korea, Malaysia, Indonesia, Philippines and Thailand. Eighty percent of those who participated in the survey were

either the owners of a card or desired to own an ATM card. 50% owned one and 30% wish to own a card. According to Jeff Portelli, Maestro (MasterCards debit card offering) has grown from zero to 70 m cards in the Asia pacific region since its launch six years ago. Today, Maestro is issued in 16 Asia Pacific markets and is accepted at over 35,000 ATMs and more than 220,000 points of sale. In India, the card is available through Citibank, Times Bank and HDFC Bank. The concept of debit cards has been a slow starter in India. Debit cards are currently offered by only a handful of banks, which has made availability low. Besides, the annual fee attached to these cards adds to the perception that consumers are asked to pay for their own money. However as the market get cracking, these fears are expected to be alleviated in future.

DEBIT CARDS
A debit card is a plastic card which provides an alternative payment method to cash when making purchases. Physically the card is an ISO 7810 card like a credit card; however, its functionality is more similar to writing a cheque as the funds are withdrawn directly from either the cardholder's bank account (often referred to as a check card), or from the remaining balance on a gift card. Depending on the store or merchant, the customer may swipe or insert their card into the terminal, or they may hand it to the merchant who will do so. The transaction is authorized and processed and the customer verifies the transaction either by entering a PIN or, occasionally, by signing a sales receipt As it is popularly known, it is an ATM card on the move. The Debit Card gives the freedom to access the Savings or Current Account at merchant locations and ATMs. Whenever to make payments, the amount will be instantly debited to the account. There are around more than 5.3 lakh Visa/PLUS ATMs and equally strong Mastercard/ Cirrus ATMs in over 140 countries worldwide. All the purchases and cash withdrawals will be in the currency of the country are in, while account will be debited in rupees. So you needn't carry traveller's cheques or foreign exchange the next time you travel Debit Card can be used at any merchant location displaying the Visa or Mastercard logo or at any ATMs displaying the Visa/PLUS or Mastercard/Cirrus logo. Besides that, one can always use it at any of the bank ATMs as a normal ATM card. Advantages of Debit Card

Debit Card is often easier to get than a credit card. Check approval or to show identification at store is not required. No need to carry cash, a checkbook or traveler's checks. Debit cards are more readily accepted than checks, especially at the time of traveling. No interest charges are to be paid by debit cardholders.

Debit card processing fee for the merchant are generally lower than credit card fees.

Disadvantages of a debit card

Enough money is required in bank account to have debit card. Once the amount is paid for purchase, if something goes wrong with the purchase.. Bank won't put money back into your account for items that are never delivered, don't work or were misrepresented.

Bank feessuch as monthly service charges, per-transaction costs or penalties for dropping below the required minimum balance are charged by debit card holders.

More chances of lose or misuse of debit card than a credit card.

Debit Card Problems can be worse than Credit Card Problems When an improper charge appears on the credit card it can not automatically out the money and simply need to work with the credit card issuer to have the charge removed from the bill. When an improper charge occurs with a debit card, however, the funds are automatically taken from the account and customer is burdened with attempting to get the money back. Meanwhile, he may experience cash flow problems and the legitimate checks could bounce. Traveling with your Debit Cards The reverse side of the debit card will display the names or symbols of the various ATM systems that will accept the card. Debit card can be used at any ATM in the world as long as the ATM displays one of the same system names or symbols that is on debit card. When obtaining funds at an ATM in a foreign country the funds dispersed will be in the currency of the country going to visit..

CREDIT CARDS
A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant. It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. Credit cards in India is gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these. Benefits of Accepting Plastic

More Sales: Studies show that credit card customers spend 2 1/2 times more than customers who only carry cash. Impulse Buying: Credit cards give customers freedom to spend for previously unplanned purchases. More Expensive Merchandise: Credit cards entice customers to purchase more expensive merchandise than they had originally planned to buy.

Competitive Weapon: Credit card customers are often less conscious of slight price differences and will seek out businesses that offer credit card payment options.

Enhanced Advertising: Since customers are more likely to shop at businesses where they have credit card acceptance, they tend to look for and read those ads first.

Steadier Sales: Credit smoothes out business peaks. Cash shoppers buy heavier on paydays and just before holidays; credit card customers buy whenever the need arises

Customer Loyalty: Research shows customers who spend more on credit tend to return to the same business again.

Disadvantages On the other hand, credit cards can 1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if not paid on time. 2. It damages the credit rating if payments are late. 3. Allow to build up more debt than actually handled by customer. 4. It has complicated terms and conditions.

DIFFERENCE BETWEEN A DEBIT CARD AND A CREDIT CARD

A debit card looks like a credit card; it works more like cash or a personal check. pay now." With a credit card, you "pay later." Debit means "subtract." In case of debit card the amount is automatically subtracted from checking or saving account, credit cards are used in stores for purchases. At check-out, the card reader electronically contacts the bank and subtracts the amount from the account. The money in bank account limits how much the customer can spend. However, if the customer is not careful in watching the daily account balance, he can over withdraw the account. Some systems will allow to use the debit card even when don't have enough money in the account to cover the purchase. This can result in hefty overdraft fees. Using a credit card is somewhat like taking out a loan from a bank or other financial institution. Customer have to pay back the credit used each month. If he pays back less than the full amount owe each month, he is to pay interest on the amount not paid back. The credit card company sets the total amount that can charge based on your credit history, income, debts and ability to pay. Some cards are dual-purpose credit/debit cards. Before swiping the card through the reader, select a "credit" or "debit" button on the reader. If you select "debit," then enter your Personal Identification Number (PIN). If select "credit," the credit receipt is given to sign and credit charges will appear on the next charge account bill.

REVIEW OF LITERATURE

Cunningham Julie (Nov 98), Kansas state university in the study College Student Using The Credit Card stated that there is a need to determine whether college students are responsible with their credit cards. This study was concerned with the problem faced by the credit cardholders. Consumer perception regarding credit cards and debit cards is very much different as it is precisely in a defined sector. Role of online commerce or payment over the internet .it future prospects of credit card and debit card in India. It also includes consumer preference among debit card and credit card, consumer satisfaction level in case of both cards. Loebecke S .Elliot (Jan 98) in his article Smart Card Based Electronic Commerce: Characteristics And Roles stated that the origin of smart cards began when consumer requirements for convenience and security out spaced the capabilities of magnetic stripe cards. Providing increased data storage and added security, smart cards were introduced in Europe in the early 1970s as stored value cards for payphones. These early smart cards were disposable and were an effective means to reduce losses. Today's advanced contact less and dual-interface smart card technologies - together with emerging digital signature laws and the development of biometric techniques - can bring a range of services to life on a single piece of silicon. Swift, Kevin (May 1998) in his article Credit Card And Debit Cards: What New? Where To? stated that trends have changed and forces have impact on the card issuer,

and forecasting its future and the resulting impact on the card economy through the year 2002.The report takes a different viewpoint from many studies of the industry which examined trends from the issuers viewpoint. This study takes those trends as the end point, and looks at the forces that will impact the card issuers. It offers insight into the combination of industry, economic, demographic, and technological changes that will have an effect on credit and debit card products, and how together they will reshape the industry landscape and result in a credit/debit card industry that will look far different in the year 2002 that it does today. The convergence of the internet and various consumer and other electronic technologies in combination with a desire on the part of companies in a number of industries to forge new alliances and offer enhanced services has established a role for electronic cash. Hayashi, Fumiko and Weiner Stuart E. (sept 2005) in their article Competition and Credit and Debit Card Interchange Fees stated that there is a bridge between the theoretical and empirical literatures on interchange fees. Credit and debit card industries are examples of two-sided markets. The distinguishing Feature of two-sided markets is they contain two sets of end users, each of whom needs the other in order for the market to operate. In the case of credit and debit cards, the two end-user groups are cardholders and merchants. Payment card systems take one of two principal forms. They may be three-party systems: Cardholders, merchants, and a single financial institution that offers proprietary network services, for example, American Express. Alternatively, they may be four-party systems: cardholders, merchants, card-issuing banks, and merchant acquiring banks, using the services of a multi-party network such as MasterCard, Visa, or a domestic debit card network. In four-party systems, the interchange fee is an instrument that networks can use to achieve a desired Balance of cardholder. Chakravorti ,Sujit (June 2003) in his article Theory of Credit Card Networks: A Survey of the Literature stated that Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive

growth in the number and value of transactions over the last 20 years. Recently, credit card networks have come under scrutiny from regulators and antitrust authorities around the world. Focusing on interrelated bilateral transactions, several theoretical models have been constructed to study the implications of several business practices of credit card networks

NEED AND SCOPE OF THE STUDY

Need of the study It is rightly said the plastic money is need of hour. People are using these cards on a vast scale. But after considering the review of literature it is seen the whole payment process of processing these cards is not safe and customer are facing many problems relating to plastic money. Thats why study is focused on consumer perception regarding the plastic money. Need of the study is to get to know about the comparative analysis of plastic money. There are many ethical issues and challenges in the market of plastic money which is required to be studied. This study is concerned with the Seven perks of plastic money Convenience, Budgeting technology, Reputation boosting, Corporate might, Cops and robbers, The float, Openness to negotiations. Scope of study: the following are the areas covered by plastic money: ATM cards are slowly being transformed into value-added debit cards. Bankers and analysts see tremendous scope for growth in debit cards. "There is tremendous potential for debit cards. It will soon be substituting cheques. Utility payments will soon be made through debit cards, either at the ATMs or at the counters. The debit card can be used to withdraw cash from ATMs of other banks depending on whether the debit card-maker has a Visa or a Maestro tie-up. Visa and MasterCard both confirmed yesterday that they had been notified of the breach and had in turn notified several banks and credit card companies of the potential data compromise. They declined to say how many companies have been notified. Credit cards As well as convenient, accessible credit; credit cards offer

consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes.

OBJECTIVES OF STUDY
Primary objectives To know the perception of people towards plastic money.

Secondary objectives To know the importance of plastic money in the daily life of consumers w.r.t credit and debit cards. To study the benefits of debit card and credit cards. To find out the market leader among the various banks/ companies issuing credit and debit cards To know the problems faced by respondents using plastic money. To study the satisfaction level of consumers towards plastic money.

RESEARCH METHODOLOGY
Research methodology deals with the method of study i.e. how the study can be carried out and what techniques can be used. It is the careful investigation and enquiry in a systematic manner in order to find solution to find problems in research. it consists of defining and redefining the problems, formulating the hypothesis or suggestions solutions ,collecting data and evaluating the data and at last carefully testing the conclusions to determine whether they fit he formulated hypothesis or not.

RESEARCH DESIGN: Research design states the conceptual structure within which
research is to be conducted. A research design is the arrangement of conditions for collections and analysis of data in a manner that aims of data in manner that aims to combine relevant the research purpose with economy in procedure. The different research designs available are: Exploratory research: it generally emphasis on discovery of ideas and insights. Its more qualitative rather than quantitive. Descriptive research: it is concerned with determining the frequency with which something occurs or extent relationship between two variables. This study will be having an exploratory research which is based on discovery of ideas and insights.

SAMPLE SIZE:-Sample size: this refers to the number of respondents to be selected

from the universe to constitute a sample. Large samples gives more reliable results than the

small samples. So the sample size of 70 respondents was taken into consideration in case of research work, which includes both debit and credit card holders. Sampling technique: the technique used for my study is convenient sampling that consists of questionnaire, which are given to respondents who are the regular users of plastic money.

METHODS OF DATA COLLECTION:

PRIMARY DATA: Primary data is that data which is collected for the first time and thus happens to be original in character. In the study, primary data will be collected from direct source of information like customers with the help of questionnaire survey and personal interview. Questionnaire: The second tool used for study is questionnaire. Various questions regarding the purposes of plastic money and the various procedures for obtaining credit cards, the necessity of credit cards, increasing relevance of plastic money among consumers, market leader among various companies issuing credit and debit cards.

TOOLS OF ANALYSIS:
Diagrams and Tables: Various graphs and tables are used to describe the performance of different credit cards and debit cards. Weighted Average: Weighted average method is also used to analyze the comparison between plastic money. Weighted average means finding out the average by assigning the weights to different factors. Formula for calculating weighted average is WiXi/Wi. Pie chart and percentage: Pie charts and percentage are also used as a tool for analysis.

LIMITATIONS
The limitations of a study are: The result are based on primary data. The accuracy of the result is also limited to the reliability of methods of investigation, measurement and analysis of data. The present study is based on the data from Delhi city only and thus might not be true for all other areas. There was lack of time. The data collected may or may not be accurate because of the biasness from respondent side. Findings are not justified because each market player have their unique characteristics of debit cards and credit cards. so its very difficult to decide which bank has upper edge in plastic money.

DATA ANALYSIS AND INTERPRETATION

1: To know about respondents who are using the plastic money. Respondents were asked whether they use plastic money or not .The results are as follows: Options Yes No No. of respondents 70 0 %age of respondents 100% -

Interpretation: From the above figure it can be interpreted that 100 respondents who are taken for the study are using plastic money and hence it can be said that majority respondents now a days are using plastic money. 2: Card possessed by respondents. Respondents were asked to explain that which card they possess and the results are as follows: Options Debit card No. of respondents 44 % age of respondents 63%

Credit card Both

8 18

11% 26%

Interpretation: From the above data collected we can interpret that that people mostly have debit card, as credit card is little expensive than debit card so people mostly prefer debit card, but still people have applied for their credit card also. Some people have both debit card and credit card

3: Debit cards of different companies/banks owned by respondents. Respondents were asked to explain that how many no. of debit card owned by them and the results are as follows: Options 1 2 More than 2 None No. of respondents 28 22 12 8 %age of

respondents 40% 31% 17% 12%

Interpretation: The above chart reveal that mostly people have one debit card; about 31% of the respondent are using two debit cards from different companies.its clear that people are satisfied with their debit card. 4: No. of credit cards of different companies/banks owned by respondents. Respondents were asked to explain that how many no. of credit card owned by them and the results are as follows: Options 1 2 More than 2 None No. of respondents 15 7 6 42 %age of respondents 21% 1% 1% 60%

Interpretation: From the above information it can be interpreted that 60% of the respondent have no credit card from different companies. and 21% own 1credit card. But still people have knowledge about these cards.

5: Companies /bank card owned by the respondents. Respondents were asked to explain which company/bank card owned by them. The result are as follows: Options HDFC Bank ICICI Bank SBI PNB AXIS Bank Any other No. of respondents 11 8 18 8 7 18 %age of respondents 16% 11% 26 % 11% 10% 26%

Interpretation: From the above data its clear that people mostly prefer SBI to get the plastic money, after that respondent prefer HDFC BANK and PNB. People usually like to have credit card with whom they have account. 6: Time period of using the debit card/credit card/both. Respondents were asked to explain the time period for which they are using them. The result are as follows: Options Less than 1 yr Between 1yr-3yr Between 3yr-5yr More than 5 yr No. of respondents 13 31 16 10 % age of respondents 19% 44% 23% 14%

Interpretation: The above data reveals that mostly people are using plastic money from 1 to 3 yrs and rest are using between 3-5 year. plastic money become a trend from the last few years.

7: Purpose for using the card. Respondents were asked to explain the purpose of using the card. The results are as follows: Options Shopping Withdrawal of money restaurant Petrol filling Any other(like going for movies etc) Interpretation: It is clear that mostly people use the card for the purpose of withdrawl. and then for shopping, 4 %use it for going for hotel and restaurants. So the plastic money is used by the respondent everywhere. 8: Card which is more beneficial. Respondents were asked to explain which card is more beneficial according to them. The result are as follows: Options Debit card Credit card Both No. of respondents 39 11 20 % age of respondents 56% 16% 28% No. of respondents 24 35 3 4 4 %age of respondents 34% 50% 4% 6% 6%

Interpretation: From the above table it is clear people mostly prefer debit cards about 28% of the respondents feel that credit card and debit card both are beneficial.

Q.NO. V. SATISFIED RATING SUB-TOTAL SATISFIED RATING SUB-TOTAL NEUTRAL RATING SUB-TOTAL DISSATISFIED RATING SUB-TOTAL V. DISSATISFIED RATING SUB-TOTAL TOTAL RESPONDENT MEAN MEAN

12 38 5 190 24 4 96 8 3 24 0 2 0

13 34 5 170 29 4 116 7 3 21 0 2 0

14 15 5 75 28 4 112 20 3 60 6 2 12

15 11 5 55 30 4 120 25 3 75 4 2 8

16 7 5 35 16 4 64 25 3 75 18 2 36

17 23 5 115 34 4 136 6 3 18 5 2 10

18 30 5 150 30 4 120 9 3 27 0 2 0

19 10 5 50 3 4 12 18 3 54 25 2 50

20 6 5 30 14 4 56 11 3 33 36 2 72

21 14 5 70 43 4 172 9 3 27 4 2 8

0 1 0 310 70 4.42857 4

0 1 0 307 70 4.385714 4

1 1 1 260 70 3.714286 4

0 1 0 258 70 3.685714 4

4 1 4 214 70 3.057143 3

2 1 2 281 70 4.014286 4

1 1 1 298 70 4.257143 4

4 1 4 170 70 2.428571 2

3 1 3 194 70 2.771429 3

0 1 0 277 70 3.957143 4

12. The any time acess is one the major benefits of debit card People agree to the statement that any any time access is one of the major benefits of debit card because peple dont have to carry cash and moreover huge availabity of 24x7 ATMS all over the world. 13.The zero interest charge is one the major benefits of debit card People agree to the statement that zero interest charge is major benefits because people dnt have to shead out their money for paying interest to bank and extra bank charges to the bank from their savings. 14.The statement that debit cards are easy to carry People agree to the statement that debits cards are easy to carry because there is no threat the hard cash and they can be easily fit into their wallets as well as their pockets.as they are very light in weight. 15.The statement that Credit cards provide Convenience in paying the bill People agree to the statement that Credit cards provide Convenience in paying the bill because first of all they are very to easier to carry and secondly you dont have to count their currency note and you can easily get your work done just by swiping the card . and majorly if in case of shortage of cash, one can easily pay the bill through credit card. 16.The statement that over draft facility is one of the benefits of Credit cards People are neutral to this statement because only 11% of people are using credit card and they strongly believe if they use overdraft facility and if they are not able to repay the money then they will be charged with certain amount of interest. 17.The statement that Credit cards provide prestige to holder

People agree to this statement because their purchasing power increases at the time of shopping and they dont have to go to the ATMs again and again to withdraw cash for paying their bills 18. The statement that fear of losing the cards is there People agree to the statement that fear of loosing the card is very much there because the plastic money is so small in size that one can easily loose it.there is also a difficulty in tracking once the card is lost. 19. The statement that there are unnecessary formalities involved while using the card People disagree to the statement that there are unnecessary formalities involved while the card because one can easily get the card by filling just a single form and one can easily get the card at his doorstep and if he asks for the services. 20.The statement that banks charges high fee for providing the card facility The people are neutral to the statement because a nominal charges are deducted for using a debit card and for using the credit card,the annual fee depends upon the card and services which are attached to the card.it may vary from rs 250 to rs2500. 21. The after sale sevices of bank after issuing you the card? People are satisfied with the after sales service of the bank after issuing the card because the cards are issued for a period of 5-10 yrs.so there is no issue of renewing the card again and again. moreover the system is also very transparent and customers themselves keep the track of their spendings and various charges that are attached to the card.

FINDINGS
Following are the findings that are drawn from the study: Respondent taken for this study are those who are using the plastic money in their daily life. 62% of the respondents believe that plastic money is the currency of modern India. 40% of respondents own one debit card and 63%owns two debit cards. People have less craze for credit card. Only 11% of the respondents have credit card. Respondents mostly prefer the plastic money of bank SBI and HDFC 44% using the cards for the last 3 years and the trend of plastic money have emerged from the last few years. Mostly people use the cards for shopping and withdrawl of money .plastic money is mostly preferred at the time of shopping. Debit card is more beneficial according to 56% respondents. Mostly people agreed that debit card provide the facility of anytime access. Anytime you can withdraw your money. Credit card is convenient way to pay agreed by most of the respondents. Credit card provide prestige to holders having the tie up with the famous card companies it provides the sense of pride.. Cardholders have to fulfill the unnecessary formalities while obtaining the card. Plastic money has a rapid growth in the coming years. The growth credit card in India is still very slow. Companies are going really hard to increase the sale of credit cars. According to weighted average method the respondents highly satisfied that the debit card is easy to carry and credit card provide convenience to pay.

CONCLUSION
In the last two years, spending pattern through plastic money 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. Consumers were not only more open to the possibility of owning a financial card, but were also more than willing to use their cards to settle dues. The status symbol aspect of owning and using cards, too, played its part in bringing about such robust growth over the space of a single year. Debit cards, in particular, proved immensely popular. According to projections for the 2003-2008 period, the number of financial cards in circulation will register a compounded annual growth rate of nearly 51 per cent so the satisfaction of consumers has also increased. There are many ethical issues and challenges for plastic money issuing banks/companies. Security relating to card should be first priority for each bank/company. Consumers are preferring these cards mostly for shopping online E-commerce has given a better way to use the plastic money. At last it is concluded that plastic money has a very bright future in the coming years because of the increasing trend of e-commerce.

RECOMMENDATIONS
Various offers and discounts should be provided on the plastic money so that all the users feel satisfied with their card choice. The interest charges on credit cards should be reduced so that people are encouraged to use it in regular routine More facility should be provided to the cardholder in order to satisfy them completely. There should be more sales executives to reinforce new customers. More outlets should be provided where the cards can be easily accepted. The unnecessary formalities should be reduced in order to obtain the plastic money. Advertisements should be given through TVs, magazines and hoarding to have maximum reach because the respondents perceive these as important promotional tools. The whole procedure of obtaining the plastic money needs to be authentic. Companies should provide security to the cardholders. Companies should reduce the amount of the annual fee charged on the cards

BIBLIOGRAPHY
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