A

PROJECT REPORT
ON

”A STUDY ON PERCEPTION TOWARDS ACCEPTANCE OF PLASTIC

MONEY”

SUBMITTED
To

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF
BUSINESS ADMINISTRATION

SUBMITTED
BY

SAHISHNUTA MAHESH MORE

MBA-II (FINANACE)

UNDER THE GUIDANCE OF

(PROF.)MRS.SHIVSHAKTI NANDA

C.H.M.E. SOCIETY’S DR. MOONJE INSTITUTE OF

MANAGEMENT AND COMPUTER STUDIES, NASHIK-13
YEAR: 2019-2020

1
 ACKNOWLEDGMENT

I would like to take this opportunity to express my respect and deep gratitude to my
guide Prof .Mrs. Shivshakti Nanda for giving all guidance required for my project report
from being a constant source of inspiration and motivation. It was my privilege to have
worked under her guidance.

I am also thankful to Dr. Preeti Kulkarni, The Director and Our Head of Department Prof.
Nitin Chaudhari, Dr. Moonje Institute of Management and Computer Studies, who
encouraged me and motivated me in completion of the product.

Sahishnuta M. More
MBA-II (FINANCE)

2
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A Study on
perception towards acceptance of plastic money” written and submitted by me to the
Savitribai Phule Pune University, in partial fulfillment of master of business
management under the guidance of Mrs. Shivshakti Nanda is my original work and the
conclusion drawn therein are based on the material collected by myself.

PLACE: Nashik
NAME: Sahishnuta Mahesh More

3
 EXECUTIVE SUMMARY

1. Due to the technological revolution in financial sector and number of innovative

products for making payment has developed after the privatization and globalization.
Customers have showed their preference over the usage of the plastic money
generally over a period of time. Plastic money is an alternative to the cash or the
standard money. Plastic money is referring to the credit cards or the debit cards that
we use to make purchases .Various other types of plastic cards provided by banks in
India are ATM cards, Smart cards.

2. The current study presents an overview of awareness, use and penetration of plastic
money among the customers in day to day life over the paper or cash money. The
study also highlights the role of these cards as electronic payment tool to be used by
customers and discusses the penetration of these cards in replacement of cash and
paper money. The factors for adoption of plastic money in replacement of cash and
paper money have been identified which shows the preference of the customers for
plastic cards over the cash and paper money.

3. My project was totally based on primary and secondary data. The project started with
studying the various types of plastic money with difference banks. This was done
thoroughly in order to understand about Plastic Money.

4. The study has clearly highlighted the use of plastic money over real money and
stressed upon the convenience and ease of use while paying or shopping by plastic
money. The convenience, security, accessibility seems to the causes of a possible
change in the scenario of money usage in the economy. On the other hand, Security
comes forward as a major cause for concern for the population using plastic money.

4
 INDEX

a. Main Index

Sr. No. Topic Page No.

Executive Summery
I Introduction
1.1 Introduction of Dissertation
1.2 Objective of the study
1.4 Scope of the study
1.6 Limitation of study

II Review Of Literature

III Research Methodology

3.1 Research Design & sample size
3.2 Primary & secondary Data

IV Analysis & Interpretation of Data

V Findings

VI Conclusions

VII Suggestions & Recommendations

Bibliography
Annexure

5
b. List of tables:

Sr. No Table No Table Name Page No

1. Age group of respondent

2. Concept of Plastic Money
3. Convenient way of payment
4. Expensive way of payment
5. Security features of payment mode
6. Preference for usage of card
7. Benefits of using the Debit and Credit cards
8. Problems perceived by the respondents on
possession of Paper money
9. Perception about transaction through plastic
money to grab black money from economy

6
c. list of Figures:

Sr. No Table No Table Name Page No

1. Age group of respondent

2. Concept of Plastic Money
3. Convenient way of payment
4. Expensive way of payment
5. Security features of payment mode
6. Preference for usage of card
7. Benefits of using the Debit and Credit cards
8. Problems perceived by the respondents on
possession of Paper money
9. Perception about transaction through plastic
money to grab black money from economy

7
CHAPTER NO 1
INTRODUCTION

8
 1.1 INTRODUCTION OF DISSERTATON

1.1.1 Introduction:

 Plastic money or polymer money, made out of plastic, is a new and easier way of
paying for goods and services.

 Plastic money was introduced in 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, etc. Credit cards, variants of plastic
money, are used as substitutes for currency. This book 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. An experience
discusses the experiences of banks like Standard Chartered, Citibank, which deal with
plastic money and their growth in the market.

Plastic money is a very recent context replacing the traditional concept of paying though
cash. Plastic money is a term coined keeping in view the increasing number of transactions
taking place on the part of consumer for paying for transactions incurred by them to purchase
goods and services physically and virtually. It includes credit cards, debit cards, pre-paid
balance cards, smart cards etc. In our study, we are typically focusing only on credit cards
and debit cards in order to find out the effectiveness of such cards in real life and consumers
perceive them. Also we would try to find out the specific areas that consumers prefer to spend
more through these cards and which out of the two do they prefer for payment.

9
Meaning:

Plastic money refers to credit cards, you use them whenever you want and pay later (with
interest, of course). It makes it too easy for people to buy things they normally could not
afford, which makes it easier to get into debt.

Definition:

 The "plastic" portion of this term refers to the plastic construction of credit cards, as
opposed to paper and metal of currency. The "money" portion is an erroneous
reference to credit cards as a form of money, which they are not. Although credit
cards do facilitate transactions, because they are a liability rather than an asset, they
are not money and not part of the economy's money supply.

 Plastic money basically means debit cards and credit cards which is having a
magnetic stripe, logo, signature of the cardholder made of plastic

 Plastic money as the name suggests the money made out of plastic, an easy way to
make payment in exchange of goods and services to reduce the usage of cash. The
concept plastic money came into 1900’s and the first plastic card was used in USA.
The idea behind using plastic money was to make payment system cashless. Plastic
money includes ATM cards, credit cards, debit cards etc

10
1.1.2 What is money?

Money means more than the coin, paper or plastic to acquire goods and services. Money is
linked to complex emotions, feelings and behaviors. Each person has "money messages" that
are based on past experiences, what you observed and what you were taught. These money
messages reflect the attitudes, perceptions and expectations that influence your financial
behaviors today.

Alex James, Money is Power”, or shall we say, “The Monopoly to Create Credit Money
and charge interest is Absolute Power”.

1.1.3 Paper money:

 Currency in the form of government notes and bank notes.

 Cash in the form of banknotes
 Currency in paper form, such as government bank notes, as distinguished from metal currency.

11
Plastic money:

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, ATM, Smart cards, etc.

Type of Cards –

1. Credit Card:

The issuer of a credit card creates a line of credit (usually called a credit limit) for the
cardholder on which the cardholder can draw (i.e. borrow), either for payment to a merchant
for a purchase or as a cash advance to the cardholder. Most credit cards are issued by or
through local banks or credit unions, but some non-bank financial institutions also offer cards
directly to the public.

2. Debit Card:

With a debit card (also known as a bank card, check card or some other description) when a
cardholder makes a purchase, funds are withdrawn directly either from the cardholder's bank
account, or from the remaining balance on the card, instead of the holder repaying the money
at a later date. In some cases, the "cards" are designed exclusively for use on the Internet, and
so there is no physical card.

12
3. ATM Card:

An ATM card (known under a number of names) is any card that can be used in automated
teller machines (ATMs) for transactions such as deposits, cash withdrawals, obtaining
account information, and other types of transactions, often through interbank networks. Cards
may be issued solely to access ATMs, and most debit or credit cards may also be used at
ATMs, but charge and proprietary cards cannot.

4. Charge Card:

With charge cards, the cardholder is required to pay the full balance shown on the statement,
which is usually issued monthly, by the payment due date. It is a form of short-term loan to
cover the cardholder's purchases, from the date of the purchase and the payment due date,
which may typically be up to 55 days. Interest is usually not charged on charge cards and
there is usually no limit on the total amount that may be charged.[4] If payment is not made
in full, this may result in a late payment fee, the possible restriction of future transactions, and
perhaps the cancellation of the card.

5. Fleet card:

A fleet card is used as a payment card, most commonly for gasoline, diesel and other fuels at
gas stations. Fleet cards can also be used to pay for vehicle maintenance and expenses, at the
discretion of the fleet owner or manager. The use of a fleet card reduces the need to carry
cash, thus increasing the security for fleet drivers. The elimination of cash also helps to
prevent fraudulent transactions at the fleet owner's or manager's expense.

Smart card

A smart card contains an electronic chip which is used to store cash. This is most useful when
you have to pay for small purchases, for example bus fares and coffee. No identification,
signature or payment authorization is required for using this card. The exact amount of
purchase is deducted from the smart card during payment and is collected by smart card
reading machines. No change is given. Currently this product is available only in very
developed countries like the United States and is being used only sporadically in India.

13
Global Card
Global cards allow you the flexibility and convenience of using a credit card rather
than cash or travelers checks while travelling abroad for either business or personal reasons.

6. MasterCard

MasterCard and Visa MasterCard and Visa are international non-profit organizations
dedicated to promote the growth of the card business across the globe. They have designed a
vast network of merchant institutions so that customer’s world-wide might use their
respective credit cards to make various purchases.

14
Advantages of Plastic Money

Purchasing Power

Time Saving

Extra Safety

Crime rates will decrease

Is internationally acceptable

Tracking transactions becomes easy

Convenience of making payments from

home

15
Advantages of Plastic Money:

 Purchasing Power: Credit or Debit cards made it easier to purchase things. Now we
don’t have any need to carry hard cash in a large amount. Plastic money is accepted
everywhere, anytime.

 Time Saving: Through a credit card or debit card you can purchase anything from
anywhere without spend money on fare or cash transition. Just provide your card details
to seller store or companies and finalize your order. Now you don’t have need to worry
about time wastes. Use internet for minimum time consuming.

 Extra Safety: While you are not carrying cash, how can it be lost? But if your card has
lost, just contact to your bank or financial institution, which provide you cards. It will
block the account and nobody can draw a single coin without your permission. So it is
100% safe without any tension.

 Crime rates will decrease: We are living in a world where thefts and crimes are on the
increase. Keeping cash in hand is not a safe thing to do. It will not give you peaceful
nights. So be practical and opt for plastic money. You do not have to worry when
someone runs away with your wallet, as long as you only have plastic money in it. The
guy needs, PIN number to use it hence he can't take the cash or swipe it. As soon as you
know that you are pickpocketed, you can call the bank and ask them to block or cancel
the card. If it was actual cash in its place, then it is easy for the thief. He can easily take
the cash and throw the wallet somewhere. But with plastic money, his job has become a
difficult one. He needs to know cracking techniques to find the PIN number to use the
cards. Hence worries associated with theft will be less in case of plastic money.

 Is internationally acceptable: One of the main advantages of plastic money is that the
same card can be used locally as well as internationally. For example, you can get rid of
the hassle of converting the cash into the currency of the country you are planning to
travel. If you have an international debit or credit card, you can make your purchases with
that card itself. So the problem of running out of cash will not happen even if you are
abroad and that helps you to have a safe journey without worrying about the cash and
budget. Sometimes we end up not buying something that we actually like due to
insufficient cash
16
 but when you have a credit card with you, you can always purchase it and pay later.
Especially from abroad as it is not practically possible to visit the country again to buy
stuff.

 Tracking transactions becomes easy: Having a track of your daily or monthly

transactions is always good. By using the plastic money you are automatically keeping a
track of all your transactions. You can verify it later if required. When we are using bank
notes, we might forget later for what we spend it, unless you have the habit of noting
down every cash transaction you make. This is not the case with plastic cards. The banks
normally send the statement of debit or credit card to its customers on a monthly basis
which will have the list of all your transactions for that particular month. This transaction
history might help us at times when we misplace a bill. We can show the transaction
details to prove that we have made a purchase. Also, for us to have a check of our
expenses or any particular transaction made in the past, these statements are useful.

 Convenience of making payments from home: In olden days when there was no plastic
money, we need to go personally to each place to make a payment be it utility payments
or booking tickets. But now you can pay at your own convenience sitting at home with
the use of plastic money. For example, you need to go to the travel agency to pay cash for
your ticket, instead, you can book your ticket online. Also when a travel agency is
involved, they charge commission or fee but when you are booking the ticket directly
from the airline's website, you are saving on it. Plastic cards can also be used for online
purchases. We can see many online shops coming up these days. If you find something
interesting on a website and would want to have it, you can always purchase it anytime
using plastic money. Another advantage is that certain websites do not charge you the
service fee if you are making payment through plastic money as the payment is done
upfront. A service fee will be charged in cash on delivery option. Plastic money can be
used 24 * 7 for online purchases.

17
 Disadvantages of Plastic Money

Shops Using Other Vendors

Less Global Availability

Worn out Magnetic Strip

Fraud

Increased Debt and High Interest Rates

18
Disadvantages of Plastic Money :

 Shops Using Other Vendors: There are numerous shops which accept credit cards of a
specific company only. In this situation the cash is the only way of payment for those
who use a credit card of another company.

 Less Global Availability: there are many cases where various companies do not permit
their cards to be used in areas where they have a regional dispute with.

 Worn out Magnetic Strip: The magnetic strip of a credit card can get worn out due to
massive use. If such a condition happens while travelling, and this is the only way of cash
that the consumer has, then he or she has to wait till the time they receive a new card,
which can take a minimum of 48 hr.

 Fraud: Credit cards can be stolen. A thief may be use them directly or to get their
information (which is required in money exchange). In today’s technical intelligence it is
also possible to get a clone of any credit card or debit card, which works like original and
they can be give you a heavy financial loss. So be aware from credit cards fraud as they
are like stolen your money from your pocket without your information.
.
 Increased Debt and High Interest Rates: Credit Card provider financial institutions and
companies charge high interest rates (may be 10% to 25%) on extra money if you fail to
pay off up to the fix date of the month. This interest is their earning, for which they give
you extra buying limits then your money. This is not a good idea that you owe loan on
high interest rates and spend it in unnecessary things or purchasing. This is complete
money wastages.

19
CHAPTER NO. 2

REVIEW OF
LITERATURE

20
 2.1 REVIEW OF LITERATURE

Dr. Gurpreet Kaur, Mrs. Rashmi Sharma2 (2017) conducted study on “Plastic Money – A
Way Forward for Cashless Transactions ” found in study that the majority of customers use
plastic money. Plastic Money are emerging and getting accepted in the market place. They
need to gain both consumer and business acceptance. Debit Card/Credit Card payments are
easier way to make payment. It is beneficial for both customer and issuer. But some
customers are not aware about utilization of these cards. According to them it is very
complex procedure so bank must give training regarding its usage. The bank should give
them facility to use plastic cards on trial basis so they can use very confidently.

PIYUSH KUMAR (2015) “AN ANALYSIS OF GROWTH PATTERN OF

CASHLESSTRANSACTION SYSTEM” found in his study that the cashless transaction
system is reaching its growth day by day , as soon as the market become globalized and the
growth of banking sector more and more the people moves from cash to cashless system. The
cashless system is not only requirement but also a need of today society. All the online
market basically depends on cashless transaction system. The cashless transition is not only
safer than the cash transaction but is less time consuming and not a trouble of carrying like
paper money. So, it is without doubt said that future transaction system is cashless transaction
system.

Muhammad Zahid Amin1, Ahmad Mansoor2, Syed Rabeet Hussain3(2016) “IS Plastic
Money Matter for Consumer Buying Behavior ” found in study that the confirming
information because consumers feel comfortable in spending through plastic money .In
recent years due to great development of technology usage of plastic money has become
accepted all around the world. General public has also turned out to be a huge user of these
plastic money modes. The basic purpose behind conducting this study was to observe the
usage behavior of customer. The findings from conducted studies has find out to be mostly
positive

Komal Dhanda(Oct 2016) “Plastic cards: A Blessing or a curse” found in her study that
the awareness of plastic cards among the purchasers. And check the customer preference of
21
plastic cards over traditional money.

22
Sharmila Pudaruth, Thanika Devi Juwaheer, Vintee Madoo (2013) “Mapping the
Hidden Constructs towards the Adoption of Plastic Cards ” found in study that the need
to have a more accurate re-look on how customers are involved in the adoption of plastic
cards in Mauritius. Customers are putting greater emphasis on benefits of plastic cards such
as speed, convenience, environmental friendly and international presence. Customers are also
very keen about issues such as risks and security issues, new features and innovation when
adopting plastic cards. Hence, it is highly recommended that the banks develop a deep
understanding of the factors influencing plastic card.

P. Manivannan (2013) in his research paper “Plastic Money a way for cash Less Payment
System” examined that Plastic Money i.e. usage of Credit card was measured a luxury, and
has become needed. These plastic money and electronic payments was and used by only
higher income group. This facility extended not only to customers in urban areas or cities, but
also to customers residing in rural area. However, today, with development of banking and
trading activity, the fixed income group or salaried classes are also start using the plastic
money and electronic payment systems and particularly Credit cards.

Lowenstein and Hafalir in 2012 conducted a study on “The Impact of Credit Cards on
Spending”. The study focused on two types of customers, revolvers (who carry debt) and
convenience users (who do not carry debt), and measured the impact of payment with credit
card as compared with cash by an insurance company employees spending on lunch in a
cafeteria. It was found that there was change in the diner’s payment medium from cash to a
credit card when an incentive to pay with a credit card was given. It was then found out that
credit cards do not increase spending. However, the use of credit cards has a differential
impact on spending for revolvers and convenience users. Revolvers spend less when induced
to spend with a credit card, whereas convenience users display the opposite pattern.

Subhani in 2011 conducted a study on ‘Plastic Money/Credit Cards Charisma for Now and
Then’. The study was based to find out the charisma of plastic money, its usability and
affordability and its impact on its preference to use. The research found that the preference to
use of plastic money/ credit card has its pros and cons with its usability and affordability.

23
According to the consumer behavior, plastic money is a form of conditioning and acts as a
stimulus which qualifies a consumer to spend. The study shows that the preference to go for
plastic money has a positive association with the easy use of plastic money because the
precept of credit card usability is linked with a psychological phenomenon that people are
likely to spend less with credit card and spend more with the same amount of cash on hand in
the same budget and this precept also linked with the consumer self-convenience, i.e.
convenience and easy use which delves into spending.

In this research paper an attempt has been made to study an overview of the development of
banking in the plastic cards usage trends since these have been introduced in Indian banking
sector. The study also highlights the role of these cards as electronic payment tool to be used
by customers and discusses the penetration of these cards in replacement of cash and paper
money. The factors for adoption of plastic money in replacement of cash and paper money
have been identified which shows the preference of the customers for plastic cards over the
cash and paper money.

24
CHAPTER NO. 3

RESEARCH
METHODOLOGY

25
 3.1 RESEARCH DESIGN AND SAMPLE SIZE

3.1.1 Research Design :

The task of defining the research problem is the preparation of the research project, popularly
known as the “Research Design”.

 Definition:“ A research design is the arrangement of condition of collection and analysis

of data in a manner that aims to combine relevance to the research purpose with economy
in procedure”

 Research Statement : “A Study on Perception Towards Acceptance Of Plastic

Money.”

3.1.3 Research Methodology:

The research design and methodology devised in this project is being presented which has
been designed keeping in mind the focused objectives and with the aim of acquiring accurate
and authentic data.

The research study is Exploratory in nature. The Study is been carried out by taking a survey
of 109 respondents by Random Sampling Method from a city of Nasik. The sample of the
population of consumers including students, working professionals, government officials,
house makers and senior citizens was selected as a random sampling method.

Besides the primary data, in the study secondary data was also collected from books, journals
and huge data which are available on the internet. Appropriate mathematical tools have then
applied to analyze the data.

26
 3.1.2 Sampling Size:

1. Sampling Technique: Perception towards: Acceptance of Plastic money in Nashik city.

2. Sample Area: Nashik.

3. Sample size: - 109 respondents

27
3.2 PRIMARY & SECONDARY DATA

Research contain primary and secondary sources of data. This project use both primary and
secondary sources of collection of data.

3.2.1 Primary Data Collection:

The primary or basic information was collected by the help of discussions with
people. The basic concept, were explained by them, which helped to analyze and collect
secondary data.
Moreover, a questionnaire was prepare and the Data of 109 people was collected.

3.2.2 Secondary Data Collection:

Secondary data was the main source of getting information. The Data was collected
from the Internet and many research Paper. The present study is based on the secondary
data. The data has collected by various sites.

28
 OBJECTIVE OF THE STUDY

1. To study the awareness and use of plastic money among the consumers.

2. To determine the penetration of plastic money in day to day life over the paper or
cash money.

3. To analyze the factors for adoption of plastic money this replaces the paper money.

4. To know the perception of people towards plastic money.

5. To study Respondent’s reasons for preference of plastic money over hard cash.

29
 HYPOTHESIS OF THE STUDY

H0: People are not aware of the concept of Plastic money at all

H1: People are aware of Plastic money and possess at least one such card

H0: People prefer to use cash more often for all their daily purchases (apparel, footwear,
electronic items etc.)

H1: People prefer plastic money over paper money for their daily transactions (apparel,
footwear, electronic items etc.)

30
 NEED OF THE STUDY

 To interact with the people who using a plastic money and gain knowledge through their
experience.
 To gain the knowledge about the plastic money.

 Practical knowledge about the collection of data & practical knowledge.

 To make the society of aware about the plastic money.

31
 SCOPE OF THE STUDY

 The paper money has small life cycle and can’t be recycled as compared to plastic
money which has long life cycle and can be recycled for further utilization. Due to this
problem faced with the paper note the invention of plastic money has been introduced.
Plastic money is secured and cannot be copied.

 Another problem that arises is that one cannot keep the huge amount of cash with
oneself and this gave an impetus to the idea of plastic cards which is known as plastic
money accepted worldwide and one can keep the huge amount with oneself while going
anywhere in the world. The plastic money makes the society a cashless society.

32
 LIMITATION OF THE STUDY

Following are the limitations for carrying out this dissertation work :

The study of the solely depends upon reliability of the data and information collected
from the primary sources, it is not possible to collect information on all activities. The study
suffers from certain limitations which are stated as follows:
1. The study is based on the primary data from 109 respondents collected through
questionnaire and secondary data
2. Study has been conducted in Nashik city only.

3. The data is collected from 109 respondent of Nashik city only.

33
 CHAPTER NO 4

ANALYSIS &
INTERPRETATION OF
DATA

34
 4.1 TESTING OF HYPOTHESIS

1st hypothesis of the study was that people are not aware of the concept of plastic money at
all. The findings reveal that people are aware of the concept of plastic money and its usage.
Most of the respondents use plastic money for their transactions and possess at least one such
card. Thus, the finding of the study rejects the null hypothesis which states that “People are
not aware of the concept of Plastic money at all” and accepts the alternate hypothesis i.e.
“People are aware of Plastic money and possess at least one such card” is accepted.

The 2nd Hypothesis of the study was that people prefer to use cash more often for all their
daily purchases. The findings reveal that majority of respondents prefer using plastic money
for buying apparels, paying electricity bills/phone bills and for online transactions and all of
them feel that it is a safe mode of transaction. Thus, the finding of the study rejects the null
hypothesis which states that “people prefer to use cash more often for all their daily
purchases” and accepts the alternate hypothesis i.e. “People prefer plastic money over paper
money for their daily transactions” is accepted.

35
4.2.1 Age group of respondent:

Table No. 1: Details of age group of respondents:-

Sr. No Age Group No. of Percentage

Respondents
1 18- 25 age 52 48%
2 25- 35 age 37 34%
3 35- 50 age 12 11

4 50-60 age 8 7%
5 Above 60 0 0%
Total 109 100%

Source: Primary data

Interpretation:

It is found that 48% of respondent are belongs to the age group of 18- 25 years whereas 34%
respondents are from 25- 35years age group. About 11% respondents belong to the age group
of 35-50 years. This indicates that about 93% respondents are belonging to less than 50 years
age group whereas only 7% respondents belong to more than 50 years age group. Its show
there is large number of young people are involved in the in study

36
4.2.2 Concept of Plastic Money

Table No. 2: Awareness about concept of Plastic Money

Sr. No Parameters No. of Respondents Percentage

1 Yes 95 87%
2 No 14 13%
Total 109 100%

Source: Primary data

Interpretation:

The study shows that about 87% of respondents are aware about plastic money and 13%
respondents are not aware about plastic money.

37
 4.2.3 Which plastic money you have?

Table No.3: Detail of which plastic money respondent have

Sr. No Parameters No. of Percentage

Respondents

1 Debit card 83 76%

2 Credit card 23 21%

3 specific outlet card 3 3%

Total 109 100%

The study shows that about 76% of respondents are have debit card and 21% respondents have
credit card and other 3% respondent are having specific outlet card.

Most of the respondents are using debit card and credit cards for various payments by giving
preferences for online payment instead of cash payment.

38
4.2.4 Convenient way of payment:

Table No.4: Detail of most convenient way of payment

Sr. No Parameters No. of Respondents Percentage

1 Card 36 33%
2 Cash 18 16%
3 Both 53 49%
4 Can’t say 2 2%
Total 109 100%

Source: Primary data

Interpretation:

The study was conducted to know about the most convenient way of payment as per
respondent’s view. The above data shows that about 33% respondents agreed that card
payments are more convenient than cash payment where as 16% respondents are said that
cash payment is convenient for them. However, 49% respondents thought that both cash and
card payments are convenient as per the required circumstances.

39
4.2.5 Security features of payment mode:

Table No. 5: Detail of money security features

Sr. No Parameters No. of Respondents Percentage

1 Cash 11 90%
2 Card 98 10%
Total 109 100%

Source: Primary data

Interpretation:

It is also tried to know the opinion of respondents about the security features of card and
Cash payment mode. From the above data it is found that card provides with better security
features over cash payment. About 90% people agreed and reveal that that card provides with
better security features that cash payment.

40
4.2.6 Expensive way of payment:

Table No. 6: plastic money is expensive way of payment as compare to cash

Sr. No Parameters No. of Respondents Percentage

1 Cash 11 9%
2 Card 98 82%
3 Cash 11 9%
Total 109 100%

Source: Primary data

Interpretation:

As per the respondents view it is tried to know about expensive way of payment. The above
table indicated that card transactions are expensive way of payment as compared to cash
transactions due to some hidden charges and penalty if any for some times. About 82%
respondents’ opinion indicates that card transactions are expensive than cash payments.

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4.2.7 Benefits of using the Debit and Credit cards:

Table No. 7: Detail of benefits of the Debit and Credit cards

No Parameters No of respondent Percentage

1 convenience 63 26%
2 Risk Of Loss Or Theft Minimized 20 8%
3 credit facility 14 6%
4 online payment 56 23%
5 Accessibility 32 13%
6 Security 40 16%
7 Portability 20 8%
Total 100%

Source: Primary data

Interpretation:

The study also tried to find out the benefits of using the debit and credit cards . The data was
collected using five rating scale about the some benefits. About convenience and security about 23%
& 16% of respondents are agreed with these benefits whereas about accessibility and portability
benefits about 13%% & 8% of respondents are satisfactory but some respondents are not agreed with
these benefits.

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4.2.8 Problems perceived by the respondents on possession of Paper money:

Table No. 8: Detail of problems perceived by the respondents on possession of paper money

No Parameters No of respondent Percentage

1 Fear of theft 53 33%
2 Increasing Duplicity 58 36%
3 Wear and Tear of Paper Money 51 31%
Total 100%

Source: Primary data

Interpretation:

During the study it is also tried to know about the problems perceived by the respondents on
possession of paper money. From the following data we can conclude that there are various
problems faced by people while keeping cash out of which fear of theft is more which is 33%
followed by wear and tear of paper money having 31% and increasing duplicity at 36%.

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4.2.9 Due to Duplicity Of Paper Money, Shifting To Plastic Money

Table No.9 detail of Shifting towards Plastic Money

Sr. No Parameters No. of Respondents Percentage

1 Yes 70 64
2 No 39 36
Total 109 100%

From the above data we can conclude that there are various problems faced by people while
keeping cash out of which increasing duplicity yes (64%) and no (36%).

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4.2.10 Perception about transaction through plastic money to grab black
money from economy:

Table No. 10: Detail of perception about plastic money transaction over cash transaction to grab
black money circulation in economy

No Parameters No of respondent Percentage

1 Yes 82 75%
2 No 2 2%
3 Can’t say 25 23%
Total 109 100

Source: Primary data

Interpretation:

The data regarding perception about transaction by plastic money to grab black money from
economy shows that about 75% respondents believed that it help to reduced the black money
from the economy. This is because transactions by plastic money will be having proper track
and monitoring of financial transaction that may help to reduce the black money circulation.
However 2% respondents don’t believe that transactions through plastic money help to grab
black money from economy.

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CHAPTER NO. 5

FINDINGS

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5.1 Findings:

1. Most of the respondents belong to the age group of 18- 25 years, 25-35 years.
2. Most of the student and employed in my respondent.

3. There is large number of respondent know concept about plastic money.

4. Respondent are more convenient way to pay by card.
5. Interpretation more expensive way by respondent is a Card.
6. Money securities are of a Card is finding by respondent.
7. Many benefit of the plastic money e.g. convenience, securities, Accessibility and
portability.
8. Using of paper money’s respondent is facing problems of Theft of Money and
increasing duplicity.
9. Large number of respondent are agree with by plastic money transaction in country
over cash transaction will help to grab black money circulation in economy.

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CHAPTER NO 6
CONCLUSIONS

48
6.1Conclusion:

 This study gives the confirming information because respondents feel comfortable in
spending through plastic money.

 In recent years due to great development of technology, usage of plastic money has
become accepted all around the world. Public has also turned out to be a huge user of
these plastic money modes.

 The basic purpose behind conducting this study was to observe the usage behavior of
customer. The findings from conducted studies has find out to be mostly positive

 The study has clearly highlighted the use of plastic money over real money. The
results of the study have stressed upon the convenience and ease of use while paying
or shopping by plastic money.

 The convenience, security, accessibility seems to the causes of a possible change in

the scenario of money usage in the economy.

 On the other hand, Security comes forward as a major cause for concern for the
population using plastic money. Therefore, it is easy to conclude that the population is
ready as ever to use plastic money at a greater level due to its high levels of ease and
convenience.

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 CHAPTER NO.7

SUGGESTIONS &
RECOMMENDATIONS

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7.1 Suggestion and recommendation:

1. By interpretation of data respondent have to more convenient to way by card because

it is better than cash.
2. Percentage of expensive way to Use is a Card it need to less expensive or Zero
charges on Card.
3. All benefit of the plastic money there need to respondents are more using of the
parameters of whatever in the data.
4. By plastic money there is many problem perceived by the respondent like large
number Fear of losing the Card, and high processing fees.
5. Everyone have to use the Plastic money because by card transaction in country, over
cash transaction will help to grab black money circulation in economy.

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 BIBLIOGRAPHY

 Research paper referred to understand and make this dissertation.

 Websites:
www.wikipedia.com
www.studymade.com

 Journals:
1. Subhani in 2011 conducted a study on ‘Plastic Money/Credit Cards Charisma
for Now and Then’
2. Lowenstein and Hafalir in 2012 conducted a study on “The Impact of Cards
on Spending”.
3. P Manivannan (2013) in his research paper “Plastic Money a way for
cash Less Payment System”

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ANNEXURE

QUESTIONNAIRE:

Dear Sir/ Madam, as part of my MBA curriculum, I, Renuka Burhade, is conducting a

research regarding the Plastic Money better than Paper money for which I need your personal
views regarding banking in shape of a questionnaire designed by me. The data being
collected are solely for academic purpose. I request you to kindly extend your co-operation.

Questionnaire on Relevance of Plastic Money :

Basic Information

1) Name:

2) Age:

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 Please Tick (√ ) In The Box Given Below The Questions To Answer :-

Q1. Do You Know Concept Of Plastic Money?

□Yes
□ No

Q2.Do You Have?

□Credit Card
□Debit Card
□Specific Outlet Card

Q3. According To You, Which Is The Most Convenient Way To Pay?

□Cash
□Card
□Both
□ can’t say

Q4. How Do You Prefer To Pay Your Utilities Bills?

□ Cash
□Card
□ECS
□ Cheque
□D.D
□Others

Q5. How Do You Make Payment For Purchases Of Household Consumables?

□ Cash
□ Card
□ Cheque
□ ECS

54
Q6. How Do You Make Payment For Purchases Of Luxury And Durable Goods?
□ Cash
□ Card
□ Cheque
□ ECS

55
 Q7. Do You Find Use Of Plastic Money To Be Safe and secured Modes Of Transaction?
□Yes
□No
□Can’t Say

Q8. Do You Find Use Of Plastic Money To Be Expensive In Comparison To Cash

Transaction?
□Yes
□No

Q9. DO You Find It Cheaper And Beneficial As If Gives You One Month Credit For
Payment?
□Yes
□No

Q10.Which of the following You Consider More Reliable And Secured?

□Paper Money
□Plastic Money
□Both
□Can’t Say

Q11. If you use plastic money, Why You Do Prefer it over cash transaction ?
□ Convenience
□ Risk Of Loss Or Theft Minimized
□ credit facility
□ online payment
□ accessibility
□ Security
□ Portability

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Q 12.Benefits Of The Debit/Credit Card According To Respondent?

No Parameter Strong Agree Satisfactory Disagree Strongly

Agree
Disagree
1. Convenience

2. Security

3. Accessibility

4. Portability

Q13. Why You Do Not Prefer Paper Money

□Fear Of Theft
□Increasing Duplicity
□Wear And Tear Of Paper Money

Q14. Do You Think That Plastic Money Will Penetrate In Society More In Future?
□Agree
□Disagree

Q15. Do You Think That There Should Be Any Limit On Daily/Monthly

Transaction Value?
□Yes
□No
□Can‘t say

Q16. Due To Duplicity Of Paper Money Are You Shifting To Plastic Money?
□yes
□No

Q27. Do You Think That More Credit Card/Debit Card Transaction In Country Over? Cash
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Transaction Will Help To Crab Black Money Circulation In Economy?
□Yes
□No
□Can’t Say

58
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