Hdfc 28174b

MINOR PROJECT REPORT ON‘ ’PLASTIC MONEY OF HDFC BANK’’

TABLE OF CONTENTS

Acknowledgement 1. Introduction •Introduction to plastic cards •Types of plastic cards •Features and Benefits 2. scope 3. objectives and purpose 4. profile of HDFC bank •Manegment •Capital structure •Product scope •Plastic money in HDFC Bank 5. Limitations 6. Conclusion 7. Finding Bibliography Appendix

AKNOWLEDGEMENT

ACKNOWLEDGEMENT ‘Success in my endeavor calls for cooperation and guidance from seniors and colleagues. This was simply brought out to me while making this project. A special note goes thanks to Mrs.Ruchika madam for his guidance while undergoing this project.

I would like to convey my heartfelt to my faculty for the trust she showed in me in asg me an important and interesting project by sparing time for me from her busy schedule to discuss and clarify various issue connected with this project, for her friendly advice and the motivation she provided me in the completion of the project.

It was enlivening and worthwhile experience to HDFC bank minor project My thanks would be incomplete without thanking almighty god for his superlative and blessings

JASKARAN SINGH

CHAPTER I INTRODUCTION

INTRODUCTION Plastic Money - An Introduction Plastic money or polymer money, made out of plastic, is a new and easier way of paying for goods and services. Plastic money was introduced in the 1950s and is now an essential form of ready money which reduces the risk of handling a huge amount of cash. It includes debit cards, ATMs, smart cards, Credit cards, etc. variants of plastic money, are used as substitutes for currency. This project on plastic money is divided into two sections titled Concepts and Experiences. The former covers articles on the emergence of plastic money, different types of plastic cards and their growth in India and other related issues. Experiences discuss the experiences of banks like Standard Chartered, Citibank, which deal with plastic money and their growth in the market. Nothing has come to represent cash the way plastic cards have. The idea of using a card to make purchases was first drawn by EDWARD BELLEMY in 1887.The US was the first country to launch it in the early 1990s .It was Diners Club International ,the first independent credit card company in the world and the American Express which have changed the way cards were used. They developed it into tangible business phenomenon. In India, the concept of plastic money caught on in the late 1980s only after private sector banking came into practice

THE development of plastic money is one of the recent Phenomenon's in the banking sector. Plastic money is a charge card. It is a direct charge against the limit sectioned. IT is a debt instrument issued by some specialized companies. It is one step forward towards cashless and cheque less society. The operation is through electronic funds transfer {EFT} installations and inter-bank network. Credit cards are key to the opening of bank s for daily payments by the card holders. Credit card has been rightly called "PLASTIC MONEY". The objective is to provide convenience and security. It eliminates cash transactions, and protects from the danger of pick pocketing a lot of cash. There is usually interest free credit for 30 to 45 days. These plastic cards have the photo identity and holders signature embossed on the card. It also has the issuing banks name and validity period of the card. The bank issuing the credit card knows well the customer and his creditworthiness. In this plastic money project we give stress on credit cards, debit card, smartcards, ATM etc.

DIFFERENT TYPES OF PLASTIC MONEY ✔Credit cards ✔Prepaid cards ✔ATM cards ✔Debit cards ✔Smart cards

Figure no. 1  CREDIT CARDS If you carry a balance, credit cards can be like expensive loans made by banks, gasoline companies and department stores. The credit card issuer gives you a card. You use the card to pay for items and services up to certain total amount-your credit “limit “The store merchant or services provider collects what you owe from the card issuer, whom you replay. You’re allowed to pay off what you owe little by little each month, as long as you pay a minimum amount each time. You’re charged interest on the balance you owe (as high as 26% each year) at the end of each period, unless you pay the full balance each time your bull arrive

Advantage of credit cards The benefits of credit cards as follows •Benefits to the bank •Benefits to the customer •The benefit to retailer

BENEFITS TO THE BANK

a) A credit card is an integral part of banks major services these days. The Credit card provides the following advantages to the bank: the system provides an opportunity to the bank to attract new potential customers. b) To get new customers the bank has to employee special trained staff. This gives the bank an opportunity to find the latent talent from among existing staff that would have been otherwise wasted. c) The more important function of a credit card, however, is simply to yield direct profit for the bank. There is a scope and a potential for a better Profitability out of income /commission earned from the traders turn over. d) This also provides additional customer services to the existing clients. It enhances the customer satisfaction e) More use by the car holder and consequently the growth of banking habits in general. f) Better network of card holders and increased use of cards means higher Popularity and image of the bank g) Savings of expense on cash holdings, i.e. stationery, printing and man Power to handle clearing transactions while considerably is reduced. It Increases h) customer- base of the bank i) It brings into banks fold high net worth customers by introducing various Types of credit card like Gold Card, Executive Card.

j) It brings in new customers from various merchants outlet which accepts Credit cards against sale of their goods/services. k) It creates a brand name and popular image for the bank. l) Large scale use of credits card and shops etc. accepting them help to Increase deposit base of the bank m) It increases interest income of the bank when card s avail of loan Facilities to settle the bills. n) This may increase the chances of relationship banking and there by retaining the customers

Benefits to card holder The principal benefits to a card holder are: a) He can purchase goods and services at a large number of outlets without Cash or cheque. The card is useful in emergency, and can save Embarrassment. b) The risk factor of carrying and storing cash is avoided. It is convenient for him to carry credit card and he has trouble free travel and may purchase his without carrying cash or cheque. c) Months purchases can be settled with a single remittance, thus, tending to reduce bank and handling charges. d) The card holder has the period of free credit usually between 30-50 days of purchase

e) Cash can usually be obtained with the card, either on card or by using it as identification when encasings a cheque at the bank f) Availing credit with minimum formality g) The credit card saves trouble and paper work to traveling business man. h) The card holder has the option of taking extended credit up to a preArranged limit without reference to anyone, in additional to an initial credit and interest free period. i) It provides a proof of spending through banking channels to strengthen his position in case of disputes with sellers. j) It also gives him exposures to banking operation since systematic ing for spending and payments are routed through banking channels

BENEFITS TO THE MERCHANT ESTABLISHMENT The principal benefits offer credit card to the retailer is a) This will carry prestigious weight to the outlets. b) Increases in sale because of increased purchasing power of the cardholder due to unbilled credit available to the cardholder. c) The retailers gain from the impulse buying and trading up the tendency to buy the bigger or better article d) Credit card ensures timely and certainly of payments.

e) Suppliers/sellers no longer have to send reminders of outstanding debits. f) Systematic ing since sales receipts are routed through banking channels

WHO CAN BE A CREDIT CARD HOLDER The general criterion applied is a person spending capacity and not merely his income and his wealth. The other criterion is the worthiness of the client and his average monthly balance. Most of the banks have clear out the norms for giving the credit cards I. II. III. IV. V. VI.

A person who earns a salary of Rs. 60,000/_ per annum is eligible for a card. A reference from a banker and the employers of the applicant is insisted upon. He should have a savings current in the bank. His assets and liabilities on a particular date are reported to bank. A statement of annual or monthly income. He is considered credit worthy upon to certain limit depending upon his income, assets and expenditure. The eligible customer is asked to fill in application form giving the details of number , name , address , income , wealth status and a proof of his income/wealth etc.

DISADVANTAGES OF CREDIT CARD The following are the common disadvantages of the credit card: a) Some credit card transactions take longer time than cash transactions because of various formalities. b) The customer tends to overspend out of immerse happiness. c) Discounts and rebates can rarely be obtained. d) The cardholder is responsible for charges due to loss or theft of the card and the bank may not be party for loss due to fraud or collusion of staff, etc. e) Customers may be denied cash discount for payment through card. f) It might lead to spending habits and cardholders may end up in big debts g) Avoid the entire cost and security problem involved in handling cash. It also allows him to delegate spending power to add on h) Credit card is considered as a status symbol

Some facts of credit cards • The first card was issued in India by Visa in 1981.

• The country's first Gold Card was also issued from Visa in1986.

• The first international credit card was issued to are stricted Number of customers by Andhra Bank in 1987through the Visa Program, after getting special permission from the Reserve Bank of India. • The credit cards are shape and size, as specified by the ISO 7810 standard. It is generally of plastic quality. It is also sometimes known as Plastic Money

 ATM CARDS

ATM cards are issued by banks essentially to give bank customers flexibility in their banking hours. In most areas, with an ATM card you can withdraw money, make deposit, transfer money between s, find out your balance, get a cash advance and even make payments at all hours of the day or night

An ATM card (also known as a bank card, client card, key card or cash card) is an ISO/IEC 7810 card issued by a bank, credit union or building society. It can be used: • at an ATM for deposits, withdrawals, information, and other types of transactions, often through interbank networks • at a branch, as identification for in-person transactions At merchants, for EFTPOS (point of sale) purchases Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN. In other words, ATM cards cannot be used at merchants that only accept credit cards.

However, other types of transactions through telephone or online banking may be performed with an ATM card without in-person authentication. This includes balance inquiries, electronic bill payments or in some cases, online purchases. In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATM's and also make point-of-sale transactions, both functions using a PIN. Europe's Maestro are examples of networks that link bank s with point-of-sale equipment. Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process. This signature known as a "Magne Print" or

"BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications. ATM Cleaning Cards are the primary means of cleaning ATM machines to ensure that the machine stays functioning properly

DEBIT CARDS Debit cards combine the functions of ATM cards and checks. Debit card area issued by banks but is used at stores, not at the banks themselves. When you pay with a debit card, the money is automatically deducted from your checking . Many banks issue a combined ATM/Debit card that looks just like a credit card and can be used in places where credit cards are accepted. But don’t be mistaken- they are not credit cards. The money you spend comes out of your checking immediately.

Features of Debit Card • Obtaining a debit card is often easier than obtaining a credit card.

• Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction. • Using a debit card frees you from carrying cash or a checkbook. • Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel. • Debit cards may be more readily accepted by merchants than checks, especially in other states or countries wherever your card brand is accepted. • The debit card is a quick, "pay now" product, giving you no grace period. •Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered, are defective, or were misrepresented. But, as with credit cards, you may dispute unauthorized charges or other mistakes within60 days. You should the card issuer if a problem cannot be resolved with the merchant. • Returning goods or cancelling services purchased with a debit card is treated as if the purchase were made with cash or a check

ADVANTAGES:

Debit and check cards, as they have become widespread, have revealed numerous advantages and disadvantages to the consumer and retailer alike. Advantages are as follows; • A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions. • Use of a debit card is limited to the existing funds in the to which it is linked (except cases of offline payments), thereby preventing the consumer from racking up debt as a result of its use, or being charged interest, late fees, or fees exclusive to credit cards. •For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the 's on the spot, thereby finalizing the transaction at the time of purchase, and bying the requirement to pay a credit card bill at a later date, or to write an insecure check containing the holder's personal information • Like credit cards, debit cards are accepted by merchants with less identification and scrutiny than personal checks, thereby making transactions quicker and less intrusive. Unlike personal checks merchants generally do not believe that a payment via a debit card may be later dishonoured. • Unlike a credit card, which charges higher fees and interest rates when a cash advance is obtained, a debit card maybe used to obtain cash from an ATM or a PIN-based transaction at no extra charge, other than a foreign ATM fee

Tips for responsible use of Debit card • If

your card is lost or stolen, report the loss immediately to your financial institution.

• If you suspect your card is being fraudulently used, report it immediately to your financial institution. • Hold on to your receipts from your debit card transactions. A thief may get your name and debit card number from a receipt and order goods by mail or over the telephone. Your card does not have to be missing in order for it to be misused. • If you have a PIN number, memorize it. Do not keep your PIN number with your card. Also, don't choose a PIN number that a smart thief could figure out, such as your phone number or birthday

DISADVANTAGES: The Debit card has many disadvantages as opposed to cash or credit: • Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre- authorizations, and even attempted but refused transactions by the merchant(some of which may not even be known by the client). • Many merchants mistakenly believe that amounts owed can be "taken" from a customer's after a debit card(or number) has been presented, without agreement as to date, payee name, amount and currency, thus causing penalty fees for overdrafts, over-the-limit, amounts not available causing further rejections or overdrafts, and rejected transactions by some banks. • In some countries debit cards offer lower levels of security protection than credit cards Theft of the s PIN using skimming devices can be accomplished much easier with a PIN input than with a signature-based credit transaction. However, theft of s' PIN codes using skimming

devices can be equally easily accomplished with a debit transaction PIN input, as with a credit transaction PIN input, and theft using a signature-based credit transaction is equally easy as theft using a signature- based debit transaction

WHAT IS THE DIFFERENCE BETWEEEN A DEBIT CARD ANDA CREDIT CARD?

The difference between a "debit card" and a "credit card" is that the debit card deducts the balance from a deposit , like a checking

, where the credit card allows the consumer to spend money on credit to the issuing bank. In other words, a debit card uses the money you have and a credit card uses the money you don't have. "Debit cards" which are linked directly to a checking are sometimes dual-purpose, so that they can be used as a credit card, and can be charged by merchants using the traditional credit networks. A merchant will ask for "credit or debit?" if the card is a combined credit+debit card. If the payee chooses "credit", the credit balance will be debited the amount of the purchase; if the payee chooses "debit", the bank balance will be debited the amount of the purchase. The "debit" networks usually require that a personal identification number be supplied. The "credit" networks typically require that purchases be made in person and often allow cards to be charged with only a signature, and/or picture ID. However, most merchant agreements in the United States forbid picture ID as a requirement to use a Credit Card.

• PREPAID CARDS Prepaid card are card in which pay first and spent later. Like the name suggest, a prepaid card requires you to pay first and use later. And you'll never have to worry about over-spending again. A stored-value card refers to monetary value on a card not in an externally recorded and differs from prepaid cards where money is on deposit with the issuer similar to a debit cards One major difference between stored value cards and prepaid debit cards is that prepaid debit cards are usually issued in the name of individual holders, while stored value cards are usually anonymous With prepaid cards the data is

maintained on computers d with the card issuer. The value associated with the card can be accessed using a magnetic stripe embedded in the card, on which the card number is encoded; using radio-frequency identification (RFID); or by entering a code number, printed on the card, into a telephone or other numeric keypad. And you'll never have to worry about over- spending again.

• SMART CARD Smart card has an implanted computer chip incorporated in the card plastic which gives it the power to perform many different functions like having a PC in your wallet! Multiple applications on the same card e.g., Credit, debit, electronic cash, and driving licenses secure identification hence you need to carry less cards in your wallet. Chip can record data or value or both and can store up to 80 times more information than a magnetic chip Terminal on which the card is used has a chip reader in addition to the magnetic stripe reader

• CHARGE CARDS Charge cards, also called travel and entertainment cards, are little different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as want, but you are required to pay off your entire balance when your bill arrives, with one exception. It you charge air fare, cruise fees or hotels fees for a hotel room booked through a travel agent on an American Express card, you pay off your balance over 36 months. You’ll be charged between 19% and 21% interest and will have to make minimum monthly payments of $20, or 1/36 of your balance,

whichever is greater. If you don’t pay your charge card bill in full, you’ll get a one-month grace period, when no interest is charged. After that, you’ll be charged interest that averages about 18%. It you don’t pay after about months, three months, your will be closed and your bill sent to the collections departments

CHAPTER II SCOPE OF STUDY OF PLASTIC CARDS

SCOPE OF STUDY OF PLASTIC CARDS During our project we got a scope to study the plastic money of India. It is a relatively new business with intense competition &each firm trying to capture each other’s market share. It was a great learning experience & we concluded following points: • Plastic money industry is still in a nascent phase in India with an underdeveloped infrastructure. • Acceptability of money is limited to large cities having Malls, big retail stores • The penetration of plastic money is limited to large cities i.e. Credit card companies don’t have many customers in tier II &tier III cities. • The companies are indulging in aggressive marketing; they Are not really concerned in satisfying the customer’s need. • There is no major product differentiation in the various credit Cards; all of them are providing similar services. • The companies are not trying to retain the customers; they Are more interested in broadening the customer base At last we conclude that Credit Card is at declining phase in India

CHAPTER III OBJECTIVES AND PURPOSE OF STUDY

OBJECTIVES OF STUDY ON PLASTIC MONEY • To know about products & services offered by HDFC BANK

• To find out the customer preferences • To know about how to paper money are convert in plastic money • To know about company in plastic money sector • To know about difference between credit and debit cards • To know about how to developed plastic money in India

PURPOSE OF THE STUDY The ultimate purpose of giving me this topic was to know about the customer’s perceptions about the different products of the bank, and to know about operational process. How these products can attract them and how the company can generate maximum profit by convincing them and to better understand customer requirement and to understand operational methodology.

CHAPTER IV PROFILE OF HDFC

PROFILE OF HDFC

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its ed office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market Reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment HDFC Bank began operations in 1995 with a simple mission: to be a “World Class Indian Bank. “We realized that only a single minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking

Services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values –Operational Excellence, Customer Focus, Product Leadership and People.

MANAGEMENT Mr. Jadish kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr.Kapoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over25 years and before ing HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, istration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs 550 crore (Rs5.5 billion). The paid-up capital is Rs 424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign

Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

DISTRIBUTION NETWORK HDFC Bank Limited provides various financial products and services. It operates in three segments: Personal Banking, NRI Banking, and Wholesale Banking. The Personal Banking segment provides savings, and current and fixed deposit s. It also offers personal, home, two wheeler, new car, used car, gold, education, healthcare, commercial vehicle, working capital, construction equipment, and warehouse receipt loans. In addition, this segment provides safe deposit lockers; credit, debit, and prepaid cards; mutual funds, general and health insurance, bonds, and equities and derivatives products; and forex and payment services. The NRI Banking segment's deposit products include rupee savings s, rupee current s, rupee fixed Deposits, foreign currency deposits, and s for returning Indians. Its loan products comprise home loans, loans against securities, loans against deposits, and gold credit cards. The Wholesale Banking segment offers funded services, which consist of working capital finance, short term finance, bill discounting, and export credit; and non-funded services, such as letters of credit, bank

guarantees, and collection of documents to corporations, and small and medium enterprises. It also various services to banks, financial institutions, mutual funds, stock brokers, insurance companies, commodity businesses, and trusts. The Bank at present has an enviable network of over 1725 branches spread over 779 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the canters where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 4393 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders

Product scope HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. The products of the company are categorized into various sections which are as follows: • s and deposits. • Loans.

• Investments and Insurance. • Forex and payment services. • Cards. • Customer centre

The above table describe the HDFC bank IN India provides different product and services these are and deposit, loan, cards, insurance, investment forex and payment services.

Plastic money in HDFC bank

Our range of Cards helps you meet your financial objectives. So whether you are looking to add to your buying power, conducting

cashless shopping, or budgeting your expenditure, you will find a card that suits you.

• Credit cards Besides arming you with unmatched spending power, HDFC Credit Cards are designed to meet your unique needs. Choose one that's tailored for you. The best credit cards are available here, including even the online credit cards service Net safe. There are following credit cards in hdfc bank.

• credit cards

• Titanium cards • Gold credit cards

• Commercial cards • Other cards

credit cards

Platinum plus credit cards India’s only ‘Platinum Plus’ credit card. A offering with fuel surcharge waiver & attractive Reward Points Benefits of platinum plus credit cards • Attractive Reward Points • Zero liability on lost card

• Interest free credit facility • Interest free credit facility • Revolving Credit Facility • Free Add-on card

• Platinum plus chip credit cards Platinum Plus Credit Card with Chip Technology for enhanced security. HDFC Bank, they understand our need for safe and secure transactions. The HDFC Bank Platinum Plus Credit Card with Card Secure is one such solution. Card Secure is an additional feature that makes all your Credit Card transactions more secure, convenient and rewarding! Let's find out how: Benefits of platinum credit cards • Safe and secure transactions • Online Security • 0% Fuel surcharge • Attractive Reward Points • Zero liability on lost card • Interest free credit facility • Utility bills through your credit card

• Visa signature credit cards Super credit card with special benefits & privileges in India & abroad.

Features & Benefits • Free Add-on card • Signature Rewards • Zero liability on lost card

• World MasterCard Credit Card HDFC Bank presents the World MasterCard Credit Card - a very offering for the truly elite. A card with tailor-made privileges that complement a discerning lifestyle. Presenting the HDFC Bank World MasterCard Credit Card. Features & Benefits • World Luxury • World Rewards • World Benefit • Zero liability on lost card • Titanium

credit cards

Convenience and savings with fuel surcharge waiver across all fuel stations. Features & Benefits • Titanium Rewards • Zero petrol surcharges • Zero liability on lost card

• Interest free credit facility • Revolving Credit Facility

Gold credit cards Features & benefit •Attractive Reward Points •Rewards points redemption •Worldwide acceptance •Revolving credit facility •women’s gold credit cards

Features and benefits • Attractive rewards programme

• Wide choice of redemption • Revolving credit facility • Zero liability on lost card • Interest free credit facility • Worldwide acceptance

Commercial credit cards • corporate platinum cards • corporate credit cards • Business Platinum Credit Card • Business Gold Credit Cards • Purchase Card • Distributor Card

Other cards

Silver credit cards: the best features you could ask for in a credit card. combined with all the services offered by a world-class bank Get all with the HDFC Bank International Silver Credit Cards. Spending money was never so rewarding! • Features

and benefits

• All-purpose credit card

• Earn while you spend • Add-on cards • Zero liability on lost card • Widely accepted

Visa value plus credit cards it's power packed with a host of unmatched features that provides your family with true Value and savings. No wonder we call it the Value Plus Credit Card. Like the name suggests, the Value Plus Credit Card brings you added value unlike any other card. It is a Guaranteed Cash Back card which enables you to earn up to 5% Cash Back on your spends. • Debit

cards

What if you could carry your bank with you? HDFC Bank Debit Cards give you complete and instant access to the money in your s without the risk or hassle of carrying cash. Choose from: • Classic cards • Specialized Cards • cards • Classic

cards

Your HDFC Bank Easy Shop International Debit Card brings to you a world of convenience. • Daily Limits: Rs 25,000 at ATMs for Withdrawal and Rs 40,000 at

merchant establishments for shopping. • Access your bank at over 8, 00,000 Visa/Maestro/Cirrus ATMs in India and abroad.

• 0 % petrol surcharge at select BPCL Petrol pumps: As a Debit Cardholder, any surcharge levied on your Card at select BPCL petrol pumps would be reversed in the subsequent month. • Shop at more than 3, 50,000 outlets in India and 13 million worldwide. The amount is debited directly to your . • Use our card overseas. Your is debited in Rupees regardless of the currency in which you spend. • Zero Liability on fraudulent Point Of Sale usage on lost or stolen cards.

Now get an Alert on your mobile phone or email for every purchase transaction done using your Debit Card at a merchant outlet!! All you need to do is for Insta Alerts! • Worldwide assistance from Visa and MasterCard on your card. • Online Shopping: Pay Bills or Shop online using your HDFC Bank Debit Card either by using Code service or by creating a one-time use virtual shopping Card • Debit Cards Offers exciting offers available on your HDFC Bank Debit Card. Specialized cards We understand what it takes to build and sustain and sustain a business. Keeping in mind the needs of your business, so HDFC introduce the easy shop business debit card. This card combines business benefits with shopping delight.

Features • Cash back: for every Rs. 200 that you will spend, you will receive Rs.1

as cash back. This cash back is valid on all purchases made through the card, at all times of the year. • POS alerts: now get an alert on your mobile phone or email for every purchase transaction done using your debit card at a merchant outlet • Special alliances by master card: special partner program in form of value adds/ special privileges/discount from outlet and office related products. • Higher daily limits: Rs. 50,000 at ATMs for withdraw Rs. 75000 at merchant establishments for shopping • 0% petrol surcharge at petrol pumps: as a business debit card holder, any petrol surcharge levied on your card at any petrol pump in India will be reversed in the subsequent month (up to a maximum of Rs. 750.00 per month per card). • Zero liability on fraudulent point of sale usage on lost or stolen cards: if it’s not tour purchase you don’t have to pay for it, your debit card is safer than ever. In case you lose your debit card, call on HDFC phone banking number or visit the nearest hdfc bank branch • Online shopping: Pay bills or shop online using your hdfc bank debit card either by using verified by visa/master card secure code service or by creating a onetime use virtual shopping card HDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your status and lifestyle.

Features & Benefits • Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that you

will spend, you will receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all times of the year! • Specialized Services*: A unique service number will be available for Woman's Debit Card customers to avail information / booking for the services listed ahead. Just call, quote your card number and use any of the services. These services are subject to availability and rendered on a best effort basis. •Entertainment assistance: · Dining Referral and Reservation Assistance

· Flower & Gift Delivery · Movie Tickets • Home assistance:

· Electrical & Electronic Gadget Repair Assistance · Pest Control Assistance· . Home Cleaning Assistance • Wellness: · Medical Checkup Packages

· Nursing Care Arrangement 50% discount on locker fee*: You will be entitled to a 50% discount on

locker fee for the 1st year. This waiver would be applicable for only one locker per card. In order to avail of the discount, please show your Woman's Advantage Debit Card at the branch Special discount on purchase of Gold Bars*: Preferential pricing will be given

to you on purchase of Gold Bars. In order to avail of the special discount, pleas show your Woman's Advantage Debit Card at the branch.

Insurance cover*: •You will be entitled to Personal Accident insurance cover of 2 lacs.

With effect 1st march 09, for Claims under Personal Accident Insurance to be accepted & processed, the cardholder should have carried out at least 1 purchase transaction using the Debit Card, within 6 months prior to the event date. Zero Liability*: You will not have any liability to any fraudulent Point of

Sale transactions on the debit card, which take place up to 30 days prior to reporting the card loss Free Bill Pay*: You will not be charged for Bill Pay Service, normally

chargeable at Rs. 100 p.a Daily Limits: Rs. 25,000 at ATMs for Withdrawal and Rs. 40,000 at

merchant establishments for shopping our Easy Shop Titanium Debit Card bring to you a world of convenience. Now you can shop, dine, pay bills, and do much more using your Easy Shop Titanium Debit Card. It is specifically designed for customers having a salary with HDFC Bank. You get a complete range of features like petrol surcharge waiver at all petrol pumps in India and zero liability. Not to mention that you can use this Card to withdraw cash at any of the Master/Cirrus ATMs around the world. cards HDFC Bank Easy Shop Gold Debit Card not only replaces your ATM / Regular Debit Card, it also opens a world of privileges that match your status and lifestyle.

Features & Benefits ○ Daily Limits: Rs.50, 000 at ATMs for Withdrawal and Rs. 75,000 at merchant establishments for shopping. ○ Cash Back*: For every Rs. 100 that you will spend, you will receive Re.

1as cash back. This cash back is valid on all purchases made through the card, at all times of the year!!! ○ 0 % petrol surcharge at Petrol pumps*: As a Gold Card holder, any petrol surcharge levied on your Card at any petrol pump in India will be reversed in the subsequent month. (Up to a maximum of Rs 750.00 per month per card) ○ Zero Liability on fraudulent Point of sale usage on lost or stolen cards*: If it's not your purchase you don't have to pay for it!! Your Debit Card is safer than ever! • In case you lose your Debit Card, call us on our phone banking

numbers or visit The nearest HDFC Bank branch.

With effect 1st March 09, for Claims under Personal Accident Insurance / Fire & Burglary Insurance/ Loss of checked baggage Insurance to be accepted & processed, the cardholder should have carried out at least1 purchase transaction using the Debit Card, within 6 months prior to the event date. ○ Exclusive offers at outlets*: Special Offers for our Easy Shop

Gold Debit Card customers in association with Visa and MasterCard will be provided form time to time. Click here for more details ○ Online Shopping: Pay Bills or Shop online using your HDFC Bank Debit Card either by using Verified by Visa/ MasterCard Secure Code service or by creating a onetime use virtual shopping Card - Net Safe

○ Debit Cards Offers: Click here for exciting offers available on your HDFC

Bank easy shop gold debit cards

Easy shop platinum HDFC Bank Easy Shop Platinum Debit Card not only replaces your ATM / Regular Debit Card, it also opens a world of privileges that match your status and lifestyle. Features & Benefits ○ Daily Limits: Rs.1 lakh at ATMs for Withdrawal and Rs. 1.25 lakh at merchant establishments for shopping. ○ Cash Back*: For every Rs. 100 that you will spend, you will receive Re. 1

as cash back. This cash back is valid on all purchases made through the card, at all times of the year!!! For more details Click Here ○ 0 % petrol surcharge at Petrol pumps*: As a Platinum Debit Card holder, any petrol surcharge levied on your Card at any petrol pump in India will be reversed in the subsequent month.( up to a maximum of Rs 750.00 per month per card ) • Insurance cover*: The following are included in the insurance covers

For any Claims under Personal Accident Insurance / Fire & Burglary Insurance/ Loss of checked baggage Insurance to be accepted & processed, the cardholder should have carried out at least 1 purchase transaction using the Debit Card, within 3 months prior to the event date.

Concierge Services: Get the best in lifestyle, dinning and events with the

HDFC Bank Platinum Concierge Services. Just call the Concierge hotline 1800 119494 (only through MTNL/BSNL lines) or Delhi no: 01126931828 for assistance on any of the below mentioned services, Dining Referral and Reservation Assistance Flower & Gift Delivery Movie Tickets Electrical & Electronic Gadget Repair Assistance Pest Control Assistance Home Cleaning Assistance Referral of Crèches in India Zero Liability on fraudulent Point of sale usage on lost or stolen cards*: If it's

not your purchase you don't have to pay for it!! Your Debit Card is safer than ever! In case you lose your Debit Card, call us on our phone banking numbers or visit the nearest HDFC Bank branch. Click here for more details. POS Alerts: Now get an Alert on your mobile phone or email for every

purchase transaction done using your Debit Card at a merchant outlet!! All you need to do is for Insta Alerts! Exclusive offers at outlets*: Special Offers for our Easy Shop

Platinum Debit Card customers in association with Visa will be provided from time to time. Click here for more details

Online Shopping: Pay Bills or Shop online using your HDFC Bank Debit

Card either by using Verified by Visa service or by creating a onetime use virtual shopping Card – Net Safe Debit Cards Offers: Click here for exciting offers available on your HDFC

bank

CHAPTER V LIMITATIONS

LIMITATIONS Despite the possible efforts in concluding the research, they were some unavoidable situations, which limited the scope of the project. • The study was restricted to Delhi, Noida & Ghaziabad. • Time was the biggest constraint as all questionnaires were to be filled in person to actual views, but all efforts were made to get information relevant to their search. • There may be some disepecies in views as some; people might give false information in questionnaire, as they might not be in filling the form. • The sample size of 100 is small so there may be difference in the reality and the findings.

CHAPTER VI CONCLUSION

CONCLUSION During our project we got an opportunity to study the credit card industry of India. It is a relatively new business with intense competition & each firm trying to capture each other’s market share. It was a great learning experience & we concluded following points: 1. Credit card industry is still in a nascent phase in India with an underdeveloped infrastructure. 2. Acceptability of credit cards is limited to large cities having malls, big retail stores 3. The penetration of credit cards is limited to large cities i.e. credit card companies don’t have many customers in tier II & tier III cities. 4. The companies are indulging in aggressive marketing; they are not really concerned in satisfying the customer’s need. 5. There is no major product differentiation in the various credit cards; all of them are providing similar services. 6. The companies are not trying to retain the customers; they are more interested in broadening the customer base. At last we conclude that Credit Card is at declining phase in India.

CHAPTER VII FINDINGS

FINDINGS 1. Most of the answer our indicate towards disagreement, it clearly shows customers thick that premises made by credit card comprises are not fulfilled; there why filled premises may be like difficulty in clamming insurance or free services. 2. Customers are unsatisfied with credit card services so they spread negative word of much when they are asked that is why 50% of customers don’t want to recommend their credit cards to others. 3. This answer is spread evenly oven somewhat agree, neither agree nor disagree somewhat disagree. People who somewhat agree because credit card is necessity for them as they have to travel a lot& credit card provides them security & people who somewhat diagram are because credit card didn’t meet their expectation. 4. As we can see friends or the existing s of credit card significantly influenced. The purchase of credit card which indicate. That it is the most creditable source of information insurance policies are also major attraction for the customer & presentation 7the way in which salesman convince the customers also plays important. 5. The awareness about the credit card is through salesman, so salesmen are the front and employee who play an important role in making perception of credit cards friends and colleagues also help in creating brand awareness.

6. Customers are almost evenly divided over this question which shows that them is no major product differentiation in the credit card and customer perceive that all of the them are similar. 7. Clearly, the services of credit cards have not met the expectations of customers 8. The interest changed by credit card companies’ amount to 36% per annum which in very high customers are aware of this fact & almost all of them expressed this displeasure. 9. Credit card have led to increase in the expenditure of people, People who have answered no, have not used credit cards even once. 10.Almost two third of people feel that due to debit cards & other facilities days of credit cards are going to be over.

BIBLOGRAPHY

BIBLIOGRAPHY Books • Marketing Management (10 Edition), Philip Kotler • Research Methodology (2nd Edition), C.R. Kothari

Websites • www.hdfcbank.com • www.google.com • www.about.com • www.ehow.com • www.indianbankbranches.com