Customer Satisfaction Of J&K bank with respect To New Age Banking Products

PROJECT GUIDE:

SUBMITTED BY:

ACKNOWLEDGEMENT
I would like to thank my project guide Miss Hemani khajuria for
her

valuable

guidance,

profound

advice,

persistent

encouragement and help during the completion of the project.

The project would be nothing without the enthusiasm and
imagination from my guide. Besides, the project made us realize
the value of team work and the new experiences and challenges
being faced in the work environment every minute. I would like to
thank our Marketing Incharge for his care & guidance throughout.

Regards also go to the faculty of The Business School, University

Of Kashmir for their contributions and advice. I`d also like to
express my deepest gratitude to my parents for their never
ending encouragement and support throughout the project and
being involved and helping me directly or indirectly during the
completion of the project work.

jj

PREFACE

In todays corporate and competitive world, we find that J&K Bank has shown good growth and
potential as compared to other banks. J&K Bank has given us the opportunity to work and get
experience in a highly competitive and enhancing sector.
The success story of good market share of different banks depends upon the availability of the
product and services near the customer.

EXECUTIVE SUMMARY
Indian banking system, which is among the largest banking networks in the world, did not reach most of
the rural poor in India. About 70% of the Indian population from rural areas accounted for only 30% of
bank deposits. The banks did not meet the credit requirements of the poor and they were forced to fall
back on moneylenders for credit. Though the banks were nationalized, they perceived rural credit to be a
high risk and high cost proposition. The rural borrowers were bogged down by elaborate procedures that
were required to obtain loans. The central bank in India, RBI, on its part, tried to cater to the needs of the
rural poor by establishing regional rural banks and cooperative banks, but did not meet with success. In
the early 1990s, to provide credit and savings services to the poor, microfinance was envisaged. It
received further boost with involvement of several non-governmental organizations and microfinance
institutions.
These efforts led to formation of Self Help Groups (SHGs), where poor from homogenous
background formed into groups of around 20 each and pooled money that was lent to the needy in the
group. By the mid 1990s, several mainstream banks began providing credit and savings facilities to SHGs
that built credible financial discipline. The program was called SHG Bank linkage program. Over the
time, the banks provided other facilities like housing loans and micro insurance services to the poor.There
were for profit MFIs, mutual benefit MFIs and not for profit MFIs that participated actively in spreading
microfinance initiatives across India. By 2004, there were around 1,000 MFIs in the country. Realizing
underlying potential of microfinance, several commercial banks entered into partnership with MFIs. Both
banks and MFIs stood to benefit from this association as banks could reach the interior part of the country
and MFIs could access more funds and thus reach more people.With the huge potential and low NPAs,
several private and foreign banks, unveiled their plans to enter the Indian microfinance sector. The
government and the RBI announced several measures to boost microfinance activities in the country. RBI
allowed the NGOs involved in microfinance activities to raise External Commercial Borrowings up to
US$ 5 million a year. With increase in competition and availability of funds, the Indian microfinance
sector could be the ultimate beneficiary.Still there are several poor, who were not under the purview of
microfinance, the number of SHGs and microfinance programs did not have any major impact on poverty
alleviation in the country. Only in some of the well-developed states in the country, SHGs and
microfinance gained popularity. Lot of groundwork was required to spread microfinance activities in
North and North East regions of the country.

The Jammu and Kashmir Bank was founded on 1 Oct 1938 under letters patent issued by the Maharaja
of Jammu and Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri investors to become
founding directors and shareholders of the bank, the most notable of which were Abdul Aziz Mantoo,
Pesten Gee and the Bhaghat Family, all of whom acquired major shareholdings.
The bank commenced business on 4 July 1939, and was considered the first of its nature and composition
as a State owned bank in the country. The bank was established as a semi-State Bank with participation in
capital by State and the public under the control of State Government. In 1971, the bank acquired the
status of a scheduled bank and was declared as an "A" Class bank by the Reserve Bank of India in 1976.
The bank had to face serious problems at the time of independence when out of its total of ten branches
two branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now
Pakistan-administered Kashmir) along with cash and other assets. Following the extension of Central
laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the
provisions of Indian companies act 1956. Mushtaq Ahmed is the new Chairman & CEO of Jammu &
Kashmir Bank.

VISION OF THE BANK

The Bank's vision is To catalyze economic transformation and capitalize on growth. The bank aspires
to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial
architecture for the J&K economy, at the center of which will be the J&K Bank.
The Bank is committed to achieve healthy growth in profitability and simultaneously to remain consistent
with the Bank's risk appetite and at the same time ensuring the highest levels of ethical standards,
professional integrity and regulatory compliance.

MISSION OF THE BANK

The companys mission is two-fold: To provide the people of J&K international quality financial service
and solutions and to be a super-specialist bank in the rest of the country. The two together will make it the
most profitable bank in the country.

GENERAL INTRODUCTION

Banking, in one form or another was in existence even in ancient times. Authorities on banking are
divided in their opinion regarding the origin of the term bank. The English word bank is derived from the
Italian word Bancho; the Latin words Bancus and the French word Banque, which means bank.
However modern Banking is of recent origin. It came into existence only after the industrial revolution,
with the increase in size of industrial and business units, joint stock company form of business came into
existence. This form of organization encouraged people with small means to share holders of the big
industrial and business enterprises.
There were certain selection of public who were not prepared to invest there money in shares of the joint
stock companies but they were willing to take part with their surplus money if they were assured of the
repayment of their money with some interest there on. So, naturally there arose the need for the formation
of financial institute that could collect the surplus fund of the people on terms acceptable to them and
make them available to the needy for productive purposes. The banking scenario of the country has under
gone a radical transformation owing to liberalization, globalization automation and implementation of
reforms. This has prompted banks to redefine business strategies to survive and sustain competition. The
paradigm shift has made the banks to improve customer satisfaction and adopt technology in their
operations to bring about operational efficiency and value addition to services and products.

CORPORATE SOCIAL RESPONSIBILITY (CSR) OF J&K

BANK
The Corporate Social Responsibility (CSR) of the J&K Bank seeks to recognize obligations towards
society and aims to integrate the CSR ideals into its mission for optimizing both business and social
performance. It stresses on promoting work life balance, give attention to social and environmental
concerns and host of factors that facilitate business pursuits and accomplishment of economic goals. The
CSR is not just

recognized as promulgating the Bank's own values and principles of philanthropy but

also the values and principles of all those who have a stake in it or are affected by its operations. By
supporting social cause aligned to the mission the CSR strategy differentiates the Bank's brand and
enhances its reputation. The Bank manages social issues in the same manner as any other strategic
business issues.
From health to heritage, education to entrepreneurship, poverty to painful disabilities J&K
Banks CSR initiatives aim to encompass everything. Our aim: to empower people through generous
economic support and innovative financial intervention and instill a sense of relief and protection among
societys most vulnerable sections. We also Endeavour to provide people with entertainment, sustenance
and avenues for career progression. J&K Bank believes that CSR is not simply about giving, but
garnering long-term socio-economic dividends. Be it seeking assistance or guidance from persons or
organizations, which have the relevant experience and expertise, or at times directly doing creative and
productive interventions, we aim to serve multiple purposes through our CSR initiatives.

EDUCATION
To empower people with education, J&K Bank provided 23 computers to establish a computer lab and
donated books to set up a library at a school at the remote Kaprin village in Shopian district. These
facilities cater to local students. Besides, the organisation has also helped launch minicomputer labs at
various far-off schools, including one on the Line of Control (LoC) in North Kashmir. J&K Bank
partnered with a local NGO to launch its scientifically oriented Remote Child Sponsorship Programme.
Through this initiative, the Bank sponsors the education of 20 children coming from socially and
economically disadvantaged backgrounds. Besides, the Bank also works together with a few other
organisations to help educate/ rehabilitate differently abled children. The Bank bears tuition fees,
stationery costs and prices of uniforms of students coming from economically challenged backgrounds.
Besides, it also donates learning aids to the students.

HEALTH
The health segment lies at the core of J&K Banks CSR activities. The Bank contributed significant
amounts to various health projects undertaken by reputed not-for-profit organisations, like Indian Red
Cross Society, Cancer Society of Kashmir and so on. The Bank also participated in the programmes of
Aditya-Jyoti and CENQUIN (two reputed NGOs) to rehabilitate slum dwellers and help people of the
lower stratum of the society outside J&K. The Bank organized various health camps to take health
services to the doorsteps of the people living in remote locations. Besides, the Bank took a major CSR
initiative when it organized a two day free medical camp in association with MEDANTA, The Medicity at
Jammu. Around 5000 patients from across Jammu, especially rural areas benefited from the camp. The
idea was to bring super-specialist doctors at the doorsteps of those who could not afford the luxury of
visiting metro cities for specialized treatment. The Bank continued to sponsor treatments of hemophilia
patients from Tullwari, a remote and backward village along Loc adopted by the organization in 2011.
Besides, the Company also paid for the treatment expenses of several poor patients by forming direct
liaisons with pan-India hospitals. For academic excellence in the field of medicine, the Bank has also
been participating in various research projects, academic activities and technical workshops, in
collaboration with reputed health institutions.

GREEN INITIATIVES
J&K Bank kick-started its Platinum Jubilee Celebrations by observing World Arbor Day on 8th March,
2013. The Company initiated a week-long plantation drive, in which 75,000 saplings of various species
were planted throughout Jammu and Kashmir. J&K Bank, under its CSR initiatives, develops and
maintains parks to enhance eco-preservation and help people socialise. The latest among the
organizations initiatives, its ninth one in this department, is Rani Bagh, a park dedicated to the people of
South Kashmir.
RELIEF AND REHABILITATION
J&K Bank provides relief and rehabilitation to accident victims. It extended timely assistance in both
cash and kind to the people of Frislan (a village near the famous tourist resort of Pahalgam) when a
devastating fire engulfed more than thirty houses to leave the homeless villagers in a state of despair.
Besides, the Company also extended a helping hand to victims of natural calamities across the state

FINANCIAL INCLUSION
The Bank purchases handbags from HELP Foundation and Madre
Meharbaan Welfare Trust two NGOs running tailoring and stitching centers for poor and destitute
women to provide them to aspiring Hajis as a goodwill gesture. Besides, with a view to preserve and
promote the rich handicrafts of Kashmir, traditional embroidery is also done on these bags. The bank also
innovatively engages in the financial betterment of impoverished women to help them earn a dignified
livelihood.

PROMOTING HANDICRAFTS-KASHMIRIS PRIDE

J&K Bank preserves the heritage and handicrafts of Kashmir to economically empower local artisans. As
a part of its revisited brand strategy, the Bank blends the aesthetically rich traditional Kashmiri
architecture with contemporary trends to insert a touch of Kashmir in its business units. The organisation
engages local craftsmen to incorporate Jaalis, Khatmband work, stone inlays and similar other local
architectural styles in its business units.

SPORTS
J&K Bank has a full-fledged Sports Board in place to help engage in promoting sports as a part of its
CSR initiatives. The Company has established its own Football Academy, which helps it identify, train
and groom the budding football talents to help them compete at higher levels.
Besides, it also encourages various sports activities in the state by making hefty financial contributions
and professional interventions in organising the games and upgrading their standards. The Bank also
continued to focus on encouraging specially-abled sportsmen.

SERVING PILGRIMS

The Bank continues to render a wonderful mix of banking and non-banking services to the pilgrims of
ShriAmarnathji cave, situated at a very high altitude in Kashmir. The Bank not only registers the
intending pilgrims across the country through its network of business units but provides all banking
facilities at remotest places enroute the holy cave under harsh weather conditions and difficult
terrain.Apart from keeping two cash/ service counters exclusively at the disposal of pilgrims, a Mobile
ATM Van is also kept available for the convenience of pilgrims for the entire yatra period at an altitude of
9577 feet.Providing refreshment and other support services to pilgrims and devotees visiting various
religious places especially on annual gatherings and other special occasions too continued unhindered.
Lot of effort is put in extending such gesture on big annual gatherings in highly revered places like
Hazratbal shrine, Shri Mata Vaishno Devi temple, Kheerbawani temple, Gurudwara Shri Chatti Patshahi
Sahib.

HR INITIATIVE
J&K Bank has in place a comprehensive human resource development policy to identify the best talents
and provide them with significant opportunities for growth and development. The Company focuses on
recruitment based on transparency, professionalism and merit. It nurtures talents, builds competencies and
fosters a culture of learning and development. J&K Bank offers a congenial workplace to its employees
and aims to optimally utilise its human resources to meet organisational objectives. The Company is the
second largest employer in the state of J&K. Over 30,000 candidates across the state competed for more
than 500 posts of J&K Banks Relationship Executives. J&K Bank, in line with its new business model
and expansion plan, initiated an employment drive in FY 2012-13. Apart from enhancing organisational
competence and efficiency, this initiative will also help reduce the states unemployment rates.
J&K Bank undertook several initiatives throughout FY 2012- 13 to enhance pan-organisational
empowerment. The Bank confirmed over 100 Relationship Executives (IT) to help them achieve
organisational goals. To strengthen the leadership pipeline, it also promoted 24 Assistant Vice Presidents
(AVPs) to the posts of Vice Presidents and 96 Executive Managers to AVPs. The process of career
progression was percolated down the line whereby 419 Banking Associates were inducted in the officers
cadre at various levels till the end of FY 2013. All these initiatives were aimed to empower the employees
to optimise their contributory capacity.

TRAININGS
In line with the banking sectors demands, the Human Resource Development Division conducted various
refresher courses and training programmes at NIBSCOM, NIBM, IIMS, NABARD, IIBF and other
reputed Indian institutes, within and outside the state. These courses help to sharpen the efficiencies of
employees and help them prepare to face new challenges at the workplace.
The Bank has also been organizing various in-house training programmes at STC and TTC, both at
Jammu and Srinagar. These programmes help to familiarise employees with latest banking industry trends
and outlooks, particularly at the operational level.
During FY 2012-13, these programmes helped to train 3,200 officers across all ranks and 1,388 banking
associates on various subjects, like risk management, know your customer (KYC) and money laundering,
HRD, general banking, IT, insurance, IS Audit, credit management and so on.

CUSTOMER SERVICE
Customers form the centre of our business universe at J&K Bank. Customer service is one of the most
important components of the marketing mix for products and services. High-quality customer service
helps create customer loyalty by including additional services, such as complaint redressal, along with
regular banking products.
Customer relationship is of premium importance to us at J&K Bank. We have incredible relationship with
each of our customers. We strive to delight customers with our wide range of products and services. J&K
Bank believes that focused customer services can help the organisation remain competitive.
The Company organizes customer satisfaction surveys and customer advisory forum meets at operative
levels to help improve service quality.

PROMOTING COMPLIANCE
The policy standards and systems adopted by the Bank are in conformity with the regulatory guidelines
and strict adherence is ensured through a well-defined structure of roles and responsibilities for
enterprise-wide compliance.
TOP POLICY
With the objective of promoting the philanthropic activities, other social and environmental issues, the
bank has a CSR policy in place embodying the broader principles for providing donations. The donations
are made within the prescribed limit of 1% of the published profit for the previous year. It focuses on
economic, social, cultural and geographical backwardness of the area.

TOP KEY FEATURES

The bank provides financial assistance for the benefit of Handicapped persons/ orphans/ poor
patients suffering from serious ailments.
Provides direct assistance or through Prime Minister's Relief Fund or Chief Minister's Relief
Fund or any other national level or state level calamity relief fund to needy who have suffered
due to natural disaster and calamities.
Helps in rehabilitation of handicapped children/ persons belonging to depressed classes of
society.
Provides for procurement of devices / apertures for kidney transplantation; cardiac interventions;
cancer patients; AIDS HIV and other dreaded diseases, philanthropic support for people
belonging to economically deprived sections of the society.
Provides financial support to orphanages.
Provides scholarships to meritorious students of depressed sections of the society at various levels
with focus on the needy.
Provides technical and financial support for the Heritage Preservation through sponsorship of
awareness seminars ,organizing social service camps, sponsoring Art & Literary works and

preservation and development of important historical, religious, tourist sites,

museums, libraries, archives, scientific organizations and National properties.
Provides financial assistance for protection of Environment/ecology
Constructs and develops the public utility services like bus stands, development of parks,
construction of drinking water posts, lavatories, conveniences etc.
The donations are directly made to depressed class of society including physically challenged person or
through a Non Governmental Organization engaged in the ameliorating of the suffering of this class of
society .To ensure transparency in selection of deserving beneficiaries followed by disbursement of
proceeds to the domes, the following precautionary measures are also ensured:
The applicant should not be an employee of anyInstitution, semi-Government, quasi- Government
or Government organization entitled to Medical Aid or Government organization entitled to
Medical Aid benefits.
The applicant is not a professional beggar.
The applicant is not a dependent family member of Bank's own staff.
The Bank's CSR is rooted in its Corporate Governance philosophy, which in turn is woven around Bank's
commitment to ethical practices in the conduct of its business, while striving in the constant quest to grow
with profits and enhance shareholders value and align interests of the shareholders, stakeholders and
society through adoption of best international practices and standards. Managing CSR is not viewed as an
extra cost or burden but is viewed not only as making good business sense but also contributing to the
long-term prosperity of our Bank and ultimately its survival. Being a good neighbour and showing that
you care on the one hand and being a successful business on the other, are flip sides of the same coin.With
a view to help Kargil war sufferers of Drass area in Ladakh region in their rehabilitation, the Bank
organized are relief camp. Blankets and eatables were distributed among the people covering about 1500
families settled in17 villages in and around Drass, who had migrated to Sankoo, Saliskote and other far
flung areas of Kargil. Stationery items were distributed among the school going children.

J&K BANK NEW IDENTITY

The new identity for J&K Bank is a visual representation of the banks philosophy and business strategy.
The three colored squares represent the three regions of J&K namely Jammu, Kashmir and Ladakh. The
counter form created by the interactions of the squares is a falcon with outstretched wings a symbol of
power and empowerment.

Green signifies Growth and Renewal.

Blue conveys Stability and Unity.

Red Represent Energy and Power.

INFRASTRUCTURE: GLOBAL STANDARDS OF J&K BANK

It is the fastest growing bank with 833 branches across the country as on 1 October 2013

98% of the business of J&K bank is computerized.

Anywhere banking Tele- Banking and SWIFT are facilities available in J&K bank.

Internet banking, SMS and mobile banking is provided by J&K Bank.

ATMs connected globally to all MasterCard networked ATMs.

Mobile ATM services are available- first of its kind in Northern India.

J&K bank Global access Debit Cards: Cirrus and Maestro enabled.

Own credit card are available.

It lives on RTGS System of RBI.

It has Electronic Fund Transfer (EFT) System available

FINACIAL SERVICES PORTFOLIO: ONE STOP FOR ALL FINANCIAL NEEDS

It has life insurance products of MetLife (India) Pvt. Limited.
It has non-life insurance products of Bajaj Allianz General
Insurance Co. Limited.
Offering UTI, Reliance and Kotak Mutual Funds.
It provides deposit dory services.
It has collected agent for utility services provided by State and Private sector.

 It

always

tie-ups

for

sale

of consumer goods with number of

Companies like Bajaj Auto, Honda Genset, HCL, etc

UNIQUE CHARACTERSTICS AND SERVICES

J&K Bank carries out banking business of the Central Government. In spite of a governnent equity
holding of 53 per cent, Jammu & Kashmir Bank (J&K Bank) is regarded as a private sector bank J&K
Bank is the one and only banker and lender of last resort to the Government of J&K Plan and non-plan
funds, taxes and non-tax revenues are routed through the J&K Bank J&K Bank claims the distinction of
being the only private sector bank that has been designated as agent of RBI for banking The services of
J&K Bank are utilized for the purposes of disbursing the salaries of Government officials J&K Bank
collects taxes pertaining to Central Board of Direct Taxes, in Jammu & Kashmir

PRODUCTS & SERVICES

Technology application has remained the thrust area of the Bank for last many years with an
objective to offer state of the art world class Banking facilities to its customers. The Bank continued to
leverage information technology as a strategic tool for its business operations, to gain competitive edge in
customer service as well as improving productivity and efficiency. The Banks IT strategy emphasizes
enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency
through optimal use of electronic channels, wider market reach and opportunities for cross-selling. The
Banks focus is on harnessing technology for integrating diverse products and services. Keeping this in
view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations,
Anywhere Banking , Internet Banking and SMS Banking at more & more centres.

ANYWHERE BANKING
Features:

Power to Access to your accounts across our branch network.

The facilities include Cash Deposit/Withdrawal and transfer.

Outstation Cheque collection.

SMS BANKING

Statement of Accounts.

Funds Transfer.

CORPORATE/RETAIL INTERNET BANKING

Both corporate and retail clients can access their accounts anytime and from any location via the World
Wide Web. Presently following services are available to the corporate clients:

Access/view of accounts

Transfer of Funds between self linked accounts maintained with our bank.

Transfer of Funds from their own accounts to external accounts (e.g. Vendor payment)

Transfer of Funds from external to own accounts (e.g. dealer collection).

Transfers of Bulk upload.

Transfer to non J & K Bank account holders through RBI NEFT/RTGS.

Transfer of non-standard bills.

Utility bill payments.

E-COMMERCE FACILITY FOR JK BANK E-BANKING CUSTOMERS

J & K Bank Secure Payment Gateway, to provide e-commerce facility to the e-banking

customers:

Tie up with M/S Avenues India Pvt. Ltd. (ccavenue) and M/S Bill Desk, for extending e-

commerce facility to the e-banking customers.

The facility shall be available to only such e-banking users, which have been enabled by the Bank

for Bill Payment facility.

E-Banking users intending to purchase goods online through the Ccavenue shopping site shall be

required to:

Logon

to

the

Master

Merchants

(M/S

http://world.ccavenue.com/content/clients.jsp.,

Select the item to be purchased

Select e-banking as the mode of payment.

Avenues

India

Pvt.

Ltd.)

website

Select the J & K Bank and the system will take the user to the J & K Banks ebanking site prompting him to enter his e-banking user-id and password.

After entering the Banks e-banking site the customer will be able to pay the amount of bill by
debit to its own account.

M/S BILLDESK
Is a useful service that provides customers a single point of contact for all your payment needs. Our
customer can pay bills and make other payments online. Instead of writing a cheque each time, now our
customers can use any device connected to the Internet (computer, kiosk, etc) and make payments with
the click of a mouse. In effect, through Bill Desk customers can now make All Payments at a Single
Location.

E-PAYMENT OF TAX FOR JK BANK E-BANKING CUSTOMERS

NSDL (National Securities Depository Ltd.), the first and largest depository in India, established in
August 1996 and promoted by institutions of national stature responsible for economic development of
the country has since established a national infrastructure of international standards that handles most of
the securities held and settled in dematerialized form in the Indian capital market.Tax Information
Network (TIN), a repository of nationwide tax related information, has been established by National
Securities Depository Limited on behalf of Income Tax Department of India (ITD).Although India had a
vibrant capital market which is more than a century old, the paper-based settlement of trades caused
substantial problems like bad delivery and delayed transfer of title till recently.

E-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is
required to have a net-banking account with any of the banks certified by NSDL, CBDT and RBI for
collection of Direct TAX. J&K Bank has been added to the list. Also, e-payment of Indirect Tax for J&K
State Govt. has been added to our services.

SMS BANKING
Features:

Balance Enquiry.

Transaction enquiry

Cheque Status Enquiry

ATM SERVICES
Features:
A network of more than 726 ATM`s deployed across the country as on 1 October 2013
Accepting Maestro / Cirrus / Mastercard / VISA / NFS ATM / debit / credit cards

Introduction
To
Debit cards

Debit Card :
A card allowing the holder to transfer money electronically from their bank account
when making a purchase. In other words , A payment card that deducts money
directly from a consumers checking account to pay for a purchase. Debit cards
eliminate the need to carry cash or physical checks to make purchases. In addition,
debit cards, also called check cards, offer the convenience of credit cards and many
of the same consumer protections when issued by major payment processors like
Visa or MasterCard. Unlike credit cards, they do not allow the user to go into debt,
except perhaps for small negative balances that might be incurred if the account

holder has signed up for overdraft coverage. However, debit cards

usually have daily purchase limits, meaning it may not be possible to make an
especially large purchase with a debit card.

Dual purpose of debit cards:

Debit cards serve a dual purpose: they allow the user to withdraw money from her
checking account through an ATM or through the cash-back function many
merchants offer at the point of sale, and they also allow the user to make
purchases. ATM cards, by contrast, only allow the user to withdraw money from an
ATM, while credit cards only allow purchases unless the credit card holder has a PINenabled cash advance feature (and the cash advance will incur interest, unlike
withdrawing cash from a checking account).

Every transaction made with a debit or check card will appear on the account holders monthly
statement, making it easy to keep track of purchases. Consumers are effectively making their
purchases in cash that is, with money they actually have, as opposed to money borrowed on
credit but unlike cash purchases, theres no way to lose track of amounts spent on a debit card.
And while lost or stolen cash is gone forever, a lost or stolen check card can be reported to the
bank, which can deactivate the card, remove any fraudulent transactions from the cardholders
account and issue a new card.

Classification of Debit cards:

1. Personalized card
2. Instant card
Personalized cards :
These are the debit cards which has some personal information encraved on it .In
other words, these are customised cards .
Special features; Name of the card holder
Picture on the background of the card (as per choice of the customer)
Disadvantage:

Takes time to make such cards thus time consuming.

More issuing fee than instant card (Rs 200 for jk bank )

Instant cards :
As the name suggests ,these cards are given instantly ,though such become
operative after sometime as per the working of bank .
Advantage:

The biggest advantage of such cards is that they are time saving .
Less issuing fee (eg. For jk bank it is Rs100)
J&K Debit Card Service charges :
Description

Existing Charges

Revised Charges

Issuance of J&K Bank

global debit card
(chip based)

Not prescribed

Rs. 200 + Taxes

Quarterly charges

---

Rs 35/-

Introduction
To
Credit cards

CREDIT CARD
A credit card is part of a system of payments named after the small plastic card
issued to users of the system. It is a card entitling 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.
A credit card is different from a charge card, where a charge card requires the
balance to be paid in full each month. In contrast, credit cards allow the consumers
to 'revolve' their balance, at the cost of having interest charged. Most credit cards
are issued by local banks or credit unions, and are the shape and size specified by
the ISO/IEC 7810 standard as ID-1.

Features of credit cards

It is a piece of plastic about 3.5 x 2 inches in size. Some
of the features of credit cards are:

Logos: The card carries logos of the card association (Visa, MasterCard) as well
as that of the issuing bank (ICICI, HDFC and so on) in the front. For J&K bank its
Master card.

Number: The card number is embossed in the front. This is usually a 16-digit number. The first
digit symbolizes the major industry. Banking industry cards usually start with 4, 5 or
6. The first six digits identify the issuing organization. The next nine digits denote
the individuals account number. The last digit is a check digit.

Name: Also embossed on the front of the card is the name of the cardholder.

Expiry date: The date till which the card is valid is embossed on the front of the
card.

Magnetic stripe: There is a magnetic stripe (called magstripe) running through

the length of the card on its reverse. This contains the identification information
of the card which is transmitted during a transaction.

EMV is
a technical
standard for smart payment
cards
and
for payment
terminals and automated teller machines which can accept them. EMV cards are
smart cards (also called chip cards or IC cards) which store their data on integrated
circuits rather than magnetic stripes, although many EMV cards also have stripes
for backward compatibility. They can be contact cards which must be physically
inserted (or "dipped") into a reader, or contactless cards which can be read over a
short distance using radio-frequency identification technology. Payment cards which
comply with the EMV standard are often called chip-and-PIN or chip-andsignature cards, depending on the exact authentication methods required to use
them.

CVV No.: This is a three-digit number that appears on the reverse of the card
after the 16-digit card number. This is used as an additional security check,
supposed to sign. While processing a transaction, the merchant has to verify this
signature.

Contact Nos.: On the reverse of the card, the issuing banks contact numbers
are printed.The cardholder can call these numbers for any card-related queries.

Signature: There is a space below the magnetic stripe where the cardholder is mandatory to sign

JK BANK Credit Card feature

Salient Features

Pin Based -Maestro / Cirrus Debit Card

Provides online access to savings or current account.

Accepted at all Domestic as Well as International

MasterCard,Maestro,Cirrus Enabled ATM's and Point Of Sale locations.

Accepted at National Financial Switch (NFS) ATM's.

No Transaction Fee at JK Bank ATM's

No Transaction Fee on purchases

Customer Benefits

20-50 day Credit Free Period

Revolving Credit Facility on paying of minimum payment due in the same
billing period.

Hassle free credit facility at competitive rate of interest.

Cash Withdrawal Facility upto 20% of total credit limit.

Loyalty programme

MasterCard SecureCode enbaled Credit Cards.J&K Bank lets you shop

securely online with your J&K Bank MasterCard Credit Card. This service
through a simple checkout process, confirms your identity when you make
purchases on the Internet

24 Hour Customer Assistance at JK Bank Helpdesk

Types of Cards

Blue Empowerment Card

Silver Empowerment Card

Gold Empowerment Card

Eligibility

Annual Income
o

For Salaried -Above Rs 80,000.00

For Self Employed -Above Rs. 1,50,000.00

Credit Limits

Blue Empowerment Card- Upto Rs.25,000.00

Silver Empowerment Card-Upto Rs.50,000.00

Gold Empowerment Card-Upto Rs.1,00,000.00

Rate of Interest
2.25% per month

ADVANTAGES :1.They allow you to make purchases on credit without carrying around a
lot of cash. This allows you a lot of flexibility.
2.They allow accurate record-keeping by consolidating purchases into a single
statement.
3. They allow convenient remote purchasing - ordering/shopping online or by
phone. They allow to pay for long purchase.
4.Under certain circumstances, they allow you to withhold payment for
merchandise which proves defective.
5.They are cheaper for short-term borrowing - interest is only paid on the remaining
debt, not the full loan amount.
6.Many cards offer additional benefits such as additional insurance cover on
purchases, cash back, air miles and discounts on holidays.

DISADVANTAGES:
1.You may become an impulsive buyer and tend to overspend because of the ease
of using credit cards. Cards can encourage the purchasing of goods and services
you cannot really afford.
2.Credit cards are a relatively expensive way of obtaining credit if you don't use
them carefully, especially because of the high interest rates and other costs.
3.Lost or stolen cards may result in some unwanted expense and inconvenience.
4.The use of a large number of credit cards can get you even further into debt.
5.Using a credit card, especially remotely, introduces an element of risk as the card
details may fall into the wrong hands resulting in fraudulent purchases on the card.
Fraudulent or unauthorized charges may take months to dispute, investigate, and
resolve.

Service Charges
Credit cards
PARTICULARS

EXISTING CHARGES

REVISED CHARGES

Card Type

Blue/Silver/Gold

Blue/Silver/Gold

Entrance fee

Nil

Magstrip cards : Nil

Chip Based Cards: Rs.
200 + Taxes

Annual fee

Rs. 300

Rs. 300 + taxes

Renewal fees

Rs. 250

Magstripe Cards : Rs.

250 + Taxes
Chip based cards : Rs.
300 + Taxes

Add-on Card

Rs. 150

Magstripe Card Rs. 150

+ Taxes

Chip based
card Rs. 300 + Taxes
Service Charges/
Internet Rate

2.25% per month

2.25% per month

Rs.100

Rs. 100 + Taxes

(Purchases/cash)
Late payment fee

COMPETITORS OF JAMMU & KASHMIR BANK CREDIT CARD:

Some of the main competitors of JAMMU & KASHMIR BANK in JAMMU.
SBI BANK
PUNJAB NATIONAL BANK
ICICI BANK

Introduction
To
POS Machines

POS (Point-Of-Sale) machines and cashless transactions are an integral part of

todays shopping
experience. POS machines allow customers to swipe their cards, input the amount
to be paid and pay
electronically for a transaction within seconds after the transaction is sent for
authorization.
Alternatively, the account number can be typed in and following approval the
customer receives and
signs a receipt. In short, POS machines allow businesses to save costs and make
transactions more

efficient. In other words,A point of sale/service (POS) machine is used

to conduct retail transactions. It can provide many services, including credit card
processing, check reading and cash transactions, depending on the model. These
devices can be found virtually anywhere, from grocery stores to gas stations. The
technology used in POS machines results in a speedy and secure transaction.

Point of sale (POS) or checkout is the location where a transaction occurs. A

"checkout" refers to a POS terminal or more generally to the hardware and software
used for checkouts, the equivalent of an electronic cash register.

A POS terminal manages the selling process by a salesperson accessible interface. The same
system allows the creation and printing of the voucher.
J&K Bank:
J&K bank offers two types of POS machines :
1. Landline
2. GPRS

LANDLINE

: Our Dial up POS terminal is the ideal solution for most businesses
who want to accept cards. The landline PoS machine is perfect for stationary over
the counter use. Easy to install, and complete with a sleek ergonomic design. All our
terminals come with the latest security standards. Simply insert the card, enter the
transaction amount, and hand over to the customer to verify the payment via chip
and pin. Commercial Bank POS

machines are capable of capturing card data safely and transmitting

the same data to the Bank host in a secure, encrypted manner. All terminals come
with an integrated PIN
pad where the terminal keypad allows the cardholder to enter their PIN.

GPRS : Our Wireless terminal solution processes card payments securely wherever
a GPRS mobile phone signal can be received. These terminals are the ideal solution
for the
equipment allows you to take payment to your customer, enhancing the service you
provide, such as a restaurant offering an 'at table' service. It is not only faster and
more convenient than a landline phone, but also helps to increase revenue by
enabling merchants to reach out to new market segments where fixed-line
connectivity
is
limited
or
not
practical,
such
as
remote
areas,
exhibitions/conventions etc. High-Speed (IP)

1)

Charges / Monthly Rentals

The installation charges

applicable as below:

and

monthly

rentals

S Type
of One time Monthly charges / Rentals
N Terminal installati
on
charges

shall

Instrum
ent
charges

Rs.350
1

Fixed
POS

2 GPRS
POS
2)

Rs.500

RS.1500

Free of monthly rentals

if average monthly sales
is minimum
Rs.25000/=in a half
year.*
RS.650/= **

Merchant Service Fee (MSF)

be

NIL

NIL

The Merchant Service Fee (MSF) / transaction

charges recoverable from merchants on the transaction
carried through POS are as under:

Type of Card / Amount

of txn
Debit
Card
(Domestic)

Debit
Card
(Internation
al)

Credit
Card

J&K Bank
Cards

Other Bank Cards

Up
to
Rs.2000

0.75%

0.75%

Above
Rs.2000

1.00%

1.00%

All
transaction
s

N.A.

1.5%

All
transaction
s

1.3%

1.5%

CUSTOMER FEEDBACK FORM

Title: Customer satisfaction of J&K bank with respect to new age banking products
A study on customer satisfaction survey of J&K bank. We are collecting this data for our dissertation
purpose only. The information that we will get from this data will not be provided to any other
organisation & will be kept confidential. This is for our research work only.
Personal Details:
Name:-__________________________

Contact no:-____________________

Gender:-_________________________

Occupation:-___________________

Business unit:-____________________

Age:-_________________________

Q.No:- 1. How long have you been dealing with J&K bank?

Less than 1 year

1-5 years

5-10 years

More than 10 years

Q.No:- 2. Which services do you avail from J&K bank?

Savings a/c

Current a/c

Fixed a/c

Others(specify)

Q.No:- 3. Which add-on services do you avail from J&K bank?

Debit card

Credit card

e-banking

POS machine

Others (specify)

Q.No:- 4. Do you think J&K bank is a leading bank in the state?

Yes

No

Q.No:- 5.Are you satisfied with the services provided by the bank?
Highly satisfied

Satisfied

Dissatisfied

Highly Dissatisfied

Q.No:- 6. You are availing the services of the J&K bank because of it`s?
Better service quality

Less service charges

Strong branch network

Easy accessibility

Others (specify) ......

Q.No:- 7. Being a customer of J&K bank, do you avail the services from other banks as well?
Yes

No

Intending to avail

Q.No:- 8. Comparing the services of other banks, how will you rate the services of J&K bank?
Excellent

Good

Average

Bad

Q.No:- 9. Do you think the products of J&K bank cater to all your banking needs?
Yes

No

To some extent

Q.No:- 10. Are you satisfied with the interest rates provided and charged at the bank?
Yes

Q.No:-11.

No

Do you shop online using J&K bank`s credit card, debit card or e-banking?

Yes
Q.No:-12.

To some extent

No

Very less

Are you satisfied with the annual card charges?

Yes

No

To some extent

Q.No:- 13. How will you rate the employees of the J&K bank in terms of providing service support?
Friendly
Q.No:-14.

Supportive

Average

Non Supportive

Do you find using credit card and e-banking services safe?

Yes

No

To some extent

Q.No:- 15. Are you satisfied with the location of business units and ATMs?
Satisfied

Dissatisfied

Satisfied to some extent

Q.No:- 16. Are you satisfied with the technology used by the J&K bank?
Satisfied

Dissatisfied

Satisfied to some extent

Q.No:- 17. How do you rate the security arrangements of the J&K bank?
Excellent

Good

Average

Bad

Q.No:- 18. Will you recommend J&K bank to others?

Definitely

Probably

Can`t say

No

Q.No:- 19. Is POS machine useful for transactions in business?

Yes

No

To some extent

Q.No:- 20. Does POS machine reduce paper work?

Yes
Q.No:- 21.

No

To some extent

Is shopping through credit card better than shopping through cash or debit card?

Yes

No

To some extent

Q.No:- 22. Are you satisfied with the after sale service provided by J&K bank?
Yes

No

To some extent

Q.No:- 23. Do you agree that e-banking facility has made transfer of money easier?
Yes

No

To some extent

Q.No:- 24. How do you rate these new age banking products of J&K bank?
Excellent

Good

Average

Any Suggestions or Recommendations:..........................................................................................................................................................................

....
..........................................................................................................................................................................
...
..........................................................................................................................................................................
....
......................................................................................................................................................................

THANK YOU

ANALYSIS OF THE STUDY

Q.No:-1. How long have you been dealing with the Bank?

Options

Percentage

Less than 1 year

7.33

1-5 years

42.66

5-10 years

21.33

more than 10 years

28.66

INTERPRETATION
The above graph (fig.1) shows majority of the respondents dealing with the bank from 1-5 years
are 42.66% out of 300 respondents. About 7.33% are dealing with the are dealing with the bank
for less than a year. 21.33% of the respondents are dealing for 5-10 years and 28.66% of
respondents are dealing for more than 10 years

Q.No:-2.Which services do you avail from J&K Bank?

Savings
(specify)

Current

Fixed

others

Q.No:-4.Do you think J&K Bank is a leading Bank in the state?

Options

Percentage

Yes

74.6

No

25.4

Interpretation
It is evident from the survey, that 74.6% of the respondents think that their own bank (i.e. J&K
bank) is the leading one in the state. So by analysis of the survey, it is clear that J & K bank has
already taken most of the market share in the state and has created a good brand image among its
customers.

Q.No:-5.Are you satisfied with the services provided by the Bank?

Options

Percentage

Highly satisfied

13

Satisfied

51

To some extent

Dissatisfied

21

Highly Dissatisfied

Interpretation
It is evident from the survey that the 13% respondents are highly satisfied with the services
provided by the bank. 51% of respondents are satisfied and 6% of respondents are satisfied to

some extent, 21%a Dissatisfied and 9% are highly dissatisfied with the services
provided by the Bank.Now the challenge is to make other customers satisfied by offering better
products & services.

Q.No:-7. Being a customer of J&K Bank, do you avail the services from other banks?

Options

Percentage

Yes

35.33

No

62.66

Intending to avail

Interpretation
Its evident from the survey that 35.33% of customers are availing the services from other banks
also and 62.66% of respondents are not availing the services of other banks, while as 2% of the
respond ants are intending to avail the services from other banks also.

Q.No:-8. Comparing the services of other banks, how will you rate the services of J&K bank?
Options

Percentage

Excellent

30

Good

44

Average

18

Bad

Interpretation

Its evident from the survey that 30% of the respondents think that the services
provided by the bank are excellent, 44% respondents think that the services are good, 18% of
respondents think that the services are average and 8% of respondents think that the services are
poor.

Q.No:-9. Do you think the products of J&K Bank cater to all your banking needs?
Options

Percentage

Yes

64

No

11.33

To some extent

24.66

Interpretation

Its evident from the survey shows that 64%of respondents think that J&K bank
cater all their banking needs, 11.33% of respondents think that the products of J&K bank didnt
cater all their banking needs also 24.66% of the respondents think that the products of J&K bank
cater all their banking needs to some extent.

Q.No:-10. Are you satisfied with the interest rates provided and charged at the bank?
Options

Percentage

Yes

39.33

No

44.66

To some extent

16

Interpretation

Its evident from the survey that 39.33% of customers are satisfied with the
interest rates provided and charged at the bank, 44.66% of customers are not satisfied and 16%
of the customers are satisfied to some extent with the interest rates provided and charged at the
bank.

Q.No:-13.

How will you rate the employees of the J&K bank in terms of providing service

support?
Options
Friendly
Supportive
Average
Non Supportive

Percentage
38.5
35.6
20.5
5.4

Interpretation
Its evident from the survey that 38.5% of the respondents think that the employees of J&K bank
are friendly in providing service support, 35.6% of respondents think that they are supportive in
providing service support, 20.5% think that they are both supportive as well as friendly and 5.4%
of the respondents think that the employees of J&K bank are non supportive.

Q.No:-15. Are you satisfied with the location of business units and ATMs?
Options

Percentage

Satisfied

72.66

Dissatisfied

10.66

Satisfied to some extent

16.66

Interpretation
Its evident from the survey that 72.66% of the customers are satisfied with the location of
business units and Atms, 10.66% of customers are dissatisfied and 16.66% are satisfied to some
extent with the location of business units and ATMs.

Q.No:-16. Are you satisfied with the technology used by the J&K Bank?
Options

Percentage

Satisfied

74

Dissatisfied

Satisfied to some extent

18

Interpretation
Its evident from the survey that 74% of customers are satisfied with the technology used by the
J&K Bank, 8% of the customers are dissatisfied and 18% of the customers are satisfied to some
extent with the technology used by the J&K Bank.

Q.No:-18. Are you satisfied with the Grievance redressal mechanism of the J&K Bank?
Options

Percentage

Satisfied

54

Dissatisfied

28.66

Satisfied to some extent

17.33

Interpretation
It is evident from the survey that majority of the customers are satisfied with the Customer
grievance cell. But at the same time bank needs to further strengthen its customer grievance
redressal mechanism in order to build 100% satisfaction level among its customers.

Q.No:-19. Would you like to continue the relationship with the bank?

Options

Percentage

Yes

82.6

No

17.4

Interpretation

Its evident from the survey that 82.6% of the customers will continue the
relation with the bank, 17.4% of the customers will not continue the relation with the bank while
as 4% of the customers may or may not continue the relation with the bank.

Q.No:-20. Will you recommend J&K bank to others?

Options

Percentage

Definitely

38.3

Probably

42.2

Cant say

12.3

No

7.2

Interpretation

Its evident from the survey that38.3% of customers will definitely recommend
J&K bank to others, 42.2% of customers will probably recommend, 12.3% of the customers
cant say whether they will recommend or not and 7.2 of customers will not recommend J&K
bank to others.

FINDINGS &CONCLUSION
From the survey it is evident that J&K Bank is the household name as far as banking
sector in the state of J&K is concerned.
J&K bank is market leader in providing financial services to the masses in the state.
From the customer satisfaction point of view, it can be said that J&K Bank has made a
strong brand image among its customers. Most of the customers of the bank are of the
opinion that J&K Bank is the leading bank in the state.
It is evident from the survey that J&K bank is providing prompt retail services to its
customers. From the service point of view, the J&K bank is performing satisfactorily, but
there is still room for further improvement.
The products of J&K bank are economical, customer friendly & schemes are custom
made for different strata of the society. In spite of this, only half of the customers are
satisfied with the product line of the bank. This may be partly due to the lack of some
innovative fresh products & partly due to the weak promotional & advertisement strategy
of the bank which keeps the customers unaware about the products.
From the point of view of customer relationship management (CRM), it can be said that
J&K bank is maintaining a good CRM policy as majority of the customers have good
relation with the bank.

 The J&K bank has introduced modern technological solutions in providing financial
services to its customers. The same is evident from the survey as most customers are
satisfied with the modern technology used by the bank.
The bank has produced phenomenal record in providing best security arrangements
which has been truly hailed by most of the customers.
It is evident from the survey that majority of the customers are satisfied with the
Customer grievance cell. But at the same time bank needs to further strengthen its
customer grievance redressal mechanism in order to built 100% satisfaction level among
its customers.

SUGGESTIONS AND RECOMMENDATIONS

J&K Bank should improve their services which would lead better results and client
satisfaction.
The bank should set up more and more branches outside J&K, as people are suffering
there because there are very few branches outside J&K.
The Bank should keep their clients informed i.e., the customer education should be
provide with proper information about the existing and the new services of the bank.
The services should be made available at every time to meet expectations of customers.
Grievances of customers should be handled in a proper way and within the shorter period
of time, by doing this the image of Bank will get a boost bin the eyes of customers.
The number of Atms should be increased and it should be located at proper places and at
proper distances.
Parking facility is the biggest problem of customers. Proper parking facility should be
made available which will reduce the problem of customers to some extent.
The Bank should also reduce the rate of interest and should offer attractive schemes.
The Bank should provide suitable loan facility having minimum formalities with shortest
time period.

J&K Bank should concentrate more towards rural areas in using new technology.
The bank should increase the withdrawal limit of debit cards.
Keeping in mind the present unemployment problem the bank can play a vital role in the
state to cope up with the present demands.

 More efforts should be made by the employees to give maximum

attention to their customers. The approach of the employees should be such that sense of
belongingness should be created among the customers.
The Bank should make MOUs with overseas banks so the people abroad do not face any
difficulty for money transfer & other transactions.

LIMITATIONS OF THE STUDY

Every care has been taken to make this report authentic. Yet, there were a few uncomfortable
factors, which might have had their influence on the final report. It is said, nothing is perfect
and if this quote is true, I am sure there would be few shortcomings in this project also. Sincere
efforts have been made to eliminate the limitations of the study. However, the following
limitations hampered the course of the study:-

 The study was to be completed in a short time; the time factor put a
considerable limit on the scope and the extensiveness of the study.
Because of the diversity of nature of respondents, the findings of the survey could not be
generalized.
Some of the respondents gave ambiguous replies for certain questions or omitted the
responses to some of them. The interpretation of some responses became difficult and
could generate wrong results.
The survey was conducted in Ustad Mohalla, Kachi Chhawni, Shalamar, Raghunath
Bazar and Residency Road areas of Jammu main city only.

BIBLIOGRAPHY

www.jkbank.net

www.google.com

Research
Methodology
Marketing

Management
Philip

Kotler

by