CHAPTER-I

INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
Banks are playing vital role in the economic development of a country. A sound and effective
banking system is the backbone of the economy. The banking section will navigate through all the
aspects of the banking system in India. The banker of all the banks, Reserve bank of India(RBI),
the Indian banks Association(IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO etc.
The first deals with the history part since the dawn of banking system in India. Government took
major step in the 1969 to put the banking sector into system and it nationalized 14 private banking
the mentioned year. With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customer market. The customers have more choices
in choosing their banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the service provided by banks has become
more easy and convenient. The past days had witnessed an hour wait before withdrawing cash
from accounts or a cheque from north of the country being cleared in one month in the south.

Debit card use at the point of sale has grown dramatically in recent years in Coimbatore, and now
exceeds the number of Debit card transaction. However, many questions remain regarding patterns
of debit card use, consumer preference when using debit, and how consumer might respond to
explicit pricing of card transaction. Using a new nationally representative consumer survey, the
paper describes the current use of debit cards by Coimbatore consumers, including how
demographics affect use. In addition, consumers stated reasons for using debit cards are used to
analyze how consumers substitute between debit card and other payment instruments. We also
examine the relationship between household financial conditions and payment choice. The
emergence of private/new generation banks has been changed the entire banking operation
drastically by the use of sophisticated new technologies like internet banking. ATMs, EFT
(Electronic Fund Transfer), Debit cards, Dabit cards, Mobile banking etc., are accessible to
customers on a 24*7 basis across the world. Those modern technologies enable the bankers to
overcome the barriers of time and space in extending their customer service.

Consumers are individuals with likes and dislikes. When the preponderance of people in a
particular group feel one way or another about a product, service, entity, person, place or thing, it

1
is said to be a generalized consumer attitude that could affect marketing of that person, product,
entity in positive and negative ways. Marketers strive to influence consumer attitudes, and
understanding the prevailing attitude in the first step to changing it if needed.

Consumer attitudes are both on obstacle and an advantage to a marketer. Choosing to discount or
ignore consumer’s attitudes of a particular product or service-while developing marketing strategy-
guarantees limited success of a campaign. In contrast perceptive marketers leverage their
understanding of attitudes to predict the behavior of consumer. These savvy marketers know
exactly how to distinguish the difference between beliefs, attitudes, and behaviors while leveraging
all three in the development of marketing strategies.

A debit card (also known as a bank card or check Card) is a plastic payment card that provides the
cardholder electronic access to his or her bank account(s) at a financial institution. Some cards
have a stored value with which a payment is made, while most relay a message to the cardholder’s
bank to withdraw funds from a payer’s designated bank account. The card, where accepted, can
be used instead of cash when making purchases. In some cases, the numbers assigned exclusively
for use on the internet and there is no physical card.

In many countries, the use of debit cards has become so widespread that their volume has overtaken
or entirely replaced checks and, in some instance, cash transaction. The development of debit
cards, unlike Dabit cards and charge cards has generally been country specific resulting in a
number of different systems around the world, which were often in compatible. Since the mid-
2000s, a number of initiatives have allowed debit cards issued in our country to be used in other
countries and allowed their use for internet and phone purchase.

Unlike Dabit and charge cards, payments using a debit card are immediately transferred from
the card holder’s designed bank account, instead of them paying the money back at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM cards for
withdrawing cash. Merchants may also offer cash back facilities to customers, where a customer
can withdraw cash along with their purchase. There are currently three ways that debit card
transaction are processed: EFTPOS (also known as online debit or pin debit), OFFLINE DEBIT
(also known as signature debit and the electronic purse card system.

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ONLINE DEBIT SYSTEM:

Online debit cards require electronic authorization of every transaction and the debits are reflected
in the user’s account immediately. The transaction may be additionally secured with the personal
identification for every transaction, essentially becoming enhanced automatic teller machine
(ATM) cards.

One difficulty with using online debit cards is the necessity of an electronic authorization device
at the point of sale (POS) and sometimes also a separate PIN pad to enter the PIN, although this is
becoming commonplace for all card transaction in many countries.

Overall, the online debit cards is generally viewed as superior to the offline debit cards because
of its more secure authentication system and live status, which alleviates problems with processing
lag on transactions that may only issue online debit cards. Some on-line debit system are using the
normal authentication process of internet banking to provide real- time on-line debit transactions.
The most notable of these are ideal and poll.

OFFLINE DEBIT SYSTEM:

Offline debit cards have the logos of major Dabit cards (for example, visa or master cards ) or
major debit cards (for example, maestro in the united kingdom and others countries, but not the
united states) and are used at the point of sale like a Dabit card (with payer’s signature). This type
of debit cards may be subject to a daily limit, and/or a maximum limit equal to the current
/checking balance from which it draws funds. Transactions conducted with offline debit cards
require 2-3 days to be reflected on user’s account balances.

Debit cards may also be used on the internet either with or without using a PIN. Internet
transaction may be conducted in either offline or on-line-only cards are rare in some countries
(such as Sweden), while they are common in order countries (such as the Netherlands). For a
comparison, PayPal offers the customers to use an online-only maestro card if the customer enters
a Dutch address of residence, but not if the same customer enters a Swedish address of residence.

Internet purchases can be authenticated by the customer entering their PIN if the merchant has
enabled a secure online PIN pad, in which case the transaction is conducted in debit mode.
Otherwise, transaction may be conducted in Debit or debit cards mode (which is sometimes, but

3
not conducted on online or offline mode, since both Debit and debit transaction may be conducted
in both mode.

It is a better alternative way of carrying cash or cheque book. It is an electronic card serving as
a convenient payment mechanism. Debit card allows the customers to spend only up to the limit
of balance in their account.

1.2 OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVES:

 The main aim is to identify the current scenario of debit cards and its usage.

SECONDARY OBJECTIVES:

 To analyzes the present debit card facilities provided by the bank.

 To examines the impact of debit cards on consumer satisfaction by appraising the problems
faced by the customers.

1.3 RESEARCH METHODOLOGY:

The word “Research” is derived from the French word “Researcher” meaning “search back”.
Research methodology is the process used to collect date and other type of information for use in
making have business decisions. This type of methodologies includes interviews, surveys, and
research of publication. All of these type includes the use of present and historical information.
When someone is using theoretical work, paradigms can be used to satisfy most of the criteria that
are set forth for methodology. The use of paradigms works because they are a constructive frame
work.

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NEED FOR THE STUDY:

 To identify the satisfaction level of customer towards different types of service attributes,
by identifying their critical factors.
 To study the experience and the expectations of the existing customers.
 To study to improve the current standards of services.
 To study the scope of introduction new type of services.

REASEARCH DESIGN:

Descriptive research is used to describe characteristics of a population or phenomenon being

studied. It does not answer question about how/when/why the characteristics occurred. Rather it
addresses the “what” question (what are the characteristics of the population or situation being
studied?) the characterized used to describe the situation or population are usually some kind of
categorical scheme also known as descriptive categories. For example, the periodic table
categorizes the elements. Scientists use knowledge about the nature of Electrons, Protons and
Neutrons to device this categorical scheme. We now take for granted the periodic table, yet it took
descriptive research to device it. Descriptive research generally precedes explanatory research.

AREA OF THE STUDY:

The present study is based on the information obtained through a survey process with a
geographical focus on Vadavalli in the state of Tamil Nadu.

SAMPLE SIZE:

The number of annotations needed in the study to make a statistical significant is 100 Above.

DATA SOURCE:

PRIMARY DATA:

 Primary data is nothing but the data or information which is collected fresh and for the
first time.
 Here the primary data were collected from the sample respondent of hundred persons,
from the collection of primary data an interview schedule was developed before its

5
 application among respondents. Pre-testing was carried out after altering the structured
questions given. It was employed to make sample survey.

SECONDARY DATA:

 Secondary data is nothing data or information which is already present that is referred
by someone else.
 All necessary theoretical information related to the subject was initially obtained
through various textbooks and journals. To supplement this, academic research
journals concerning to this topic both technical and occasional were also consulted. I
also visited number of libraries to collect the information.

TOOLS FOR ANALYSIS:

 Simple percentage analysis

 Chi-square test

SIMPLE PERCENTAGE ANALYSIS:

Percentage to compare the relative terms and distribution of two or more series of data’s simple
calculation of the frequencies from the data collected was the bases for calculating the percentage
of different factors. Through the use of percentage; the data are reduced in the standard form with
base equal to 100% which facilities relative comparisons. Also a more descriptive form of
percentage analysis is shown in the form of graphs and charts.

FORMULA,

Simple percentage analysis = number of respondents / total number of respondents*100.

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CHI-SQUARE TEST:

A chi-square is a statistical test commonly used for testing independence and goodness of fit.
Testing independence determine whether two or more observations across two population are
dependent on each other (that is, whether one variable helps to estimate the other). Testing for
goodness of fit determines if an observed frequency distribution matches a theoretical frequently
distribution. In both cases equation to calculate the chi-square statistic is

X2=(O-E)2/

Where O equals the observed frequency and E the expected frequency. The results of a chi-square
test, along with the degrees of freedom, are used with a previously calculated table of chi-square
distribution to find a p-value. The p-value can them be used to determine the significance of the
test.

Chi-square is a mathematical distribution of properties that enable us to equate or calculate

x2 values to c2 values (table values). The chi-square result in significant or relevant when the value
of x2 is more than the value of c2, and are significant or irrelevant when the value of x2 is less
than the value of c2.

A type of hypothesis used in statistics that proposes that no statistical exists in a set of given
observations. The null hypothesis attempts to show that no variation exists between variables, or
that a single variable is no different than zero. It is presumed to be true until statistical evidence
nullifies it for an alternative hypothesis.

1.4 LIMITATION OF THE STUDY:

 The area of the study limited it is conducted only in Coimbatore city.

 A limitation to the study would be that the customers may complete the questionnaires
as the link the researcher want them to answer.
 Due to time constraints the study is affected.
 Nowadays there are more problems arising in debit cards so many respondents going
on giving the negative and the neutral answers for just to finish the answering this is
also affect the study.

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1.5 SCOPE OF THE STUDY:

The scope of this study is very wide. The debit cards are well known by all people nowadays
banking industry is a booming industry. Now each and every industry deals with banking
Industrial. The present study focuses on the perception of card holders towards debit cards. The
study was designed to gain a better understanding of the factors influencing possession of debit
cards and card holder’s satisfaction. The study also analyses the extent of utilization of debit cards
by cardholder’s and the level of awareness of bank customers not having debit cards about such
cards. All people thought to have a debit cards in the fast moving world. It helps the banker in
introduction new type of services the study also analyses the extent of utilization of debit cards by
the card holder’s and the level of awareness of bank customers not having debit cards about such
cards all people thought to have a debit cards in the fast moving world.

1.6 STATEMENT OF THE PROBLEM:

The review of literature reveals that no study has been undertaken in relation to usage of
debit card in Coimbatore Region, in recent years. Hence, the present study entitled “A Study on
Usage Pattern of Debit Card Holders in Coimbatore Region” has been undertaken.

1.7 CHAPTER SCHEME

CHAPTER I “Introduction “deals with introduction, need for the study, objectives of the
study, scope of the study, research methodology.
CHAPTER II “Review of Literature” deals with secondary data collected from the finding
or conclusion of research work done with from books and journals articles.
CHAPTER III “An Overview of Industrial Profile” deals with about the topic and models
undertaken.

CHAPTER IV “Analysis and Interpretation” presents the data in some a meaningful manner.

CHAPTER V “Findings, Suggestion and Conclusion” shows the summary of the key finding of
the study relevant suggestion and conclusion.

The researcher also visited the library of Indian Institute of Management, Bangalore for the
collection of some source materials.

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 CHAPTER-II
REVIEW OF LITERATURE
Sarma E. J., (1989), used the ‘Lifestyle’ concept to understand the users of Debit card psycho
graphically in 1989. He concluded that “the users of Debit cards in contrast to non-users exhibit a
contemporary state of mind and reject conservative traditional concepts, can indicate that the type
of purchases that can be made on Debit cards could be viewed as ‘luxury or necessity’ based on
the lifestyles rather than broadly classifying them for all groups. Therefore the traditional
orientation towards cash which can be a major barrier to the use of Debit cards must be tackled by
card marketing banks through better marketing”. He further concluded that “the major problem
with the banks today is not only of popularizing the Debit card concept but also of increasing the
Debit card usage.” Even after two decades much has not changed.

Yeo (1990), in his Ph. D. thesis looks at identifying household Debit card choice and usage
behaviour of cardholders. It was found that several factors were significant in determining the
choice between the bank and retail Debit cards in USA. These were the level of family income,
the household age, the number of bank card holdings, the number of store card holding the related
interest rate, the relative membership fees and the card preference.

Yeo Jung Sang (1992), in his thesis had focused on the attitude and behaviour of Debit card
holders. The researcher had used dichotomous multi nominal logic to analyse the demographic
factors like age, education level, size of the house hold, income level, number of bank card
holdings, store card holdings, relative interest rate, and relative membership fee. The results of the
study revealed that the effects of the explanatory variables were significant except the number of
store card holdings

Punjavat (1993), in his Ph. D. thesis examines Graduate International Students’ knowledge,
attitude, experience, practices and satisfaction relating to Debit card. This study was conducted on
261 students. Finding showed that the respondents’ Debit card knowledge was low, attitudes were
favorable and Pre U.S experience is limited. Since living in the U.S respondents had become
regular user with a mean of 3.3 cards and a majority charging more than $200 per month. They
followed commonly recommended practices and eight of ten were satisfied with their Debit card
use, several statistically significant relationship were found among the Debit card variables and

9
between this variables and socio-demographic characteristics such as country of origin and length
of U.S. pre-developed and evaluated.

Parimala (2001), in her Ph. D. thesis highlighted the marketing environment of Debit cards in
Trichirappalli. Her major findings are not sufficient merchant establishment to honoring Debit
cards, cardholders were not aware of all services offered by the issuers, lack of sufficient
advertisement and publicity. Her suggestions to overcome these and reduce charges for penalty,
interest, annual charges are a much scope for growth and expansions of Debit cards market.

Swarnalatha (2002), in her Ph. D. thesis analyses and the results of the Debit cards services. The
study based on the perception of selected Debit cardholders of various issuing banks in Chennai
city. This research finding and conclusion based on the hypothesis that single cardholders are less
satisfied than multiple cardholders. Further the results also stated that there are cardholders holding
cards both in Indian and foreign banks are more aware of the services and experienced their greater
satisfaction.

C. Prakash (2003), in his study had focused on the impact of Debit cards on spending pattern to
study the conceptual aspects and the evolution of Debit cards in India. Interview schedule was
given to three hundred Debit card holders. Simple Percentage, F- test, ANOVA and Chi-square
test were used to analyse the collected data. It was found out that almost all the respondents
irrespective of their income levels had agreed that their purchasing power had increased after they
had begun to use their Debit cards. The accessibility of the Debit cards is limited to very small
institutions like airlines, jewelers shop and restaurants.

V. K. Anitha (2003), in her study had focused on the purchase behaviour of customers, their
satisfaction with regard to the services offered by Citi Bank through its agencies and their
functioning. The Merchant Establishments should be encouraged to accept more cards. It was
concluded that the service centers must maintain good relationship with their customers and they
should solve their problems and clarify doubts regarding settlements.

Murugesan (2007), in his Ph. D. thesis entitled “A study on bank Dabit card culture in Chennai
city” analyses that the Debit card gives ample scope for the expansion and growth of business.
More innovative and user-friendly schemes should be introduced to make more number of people
to have Debit cards. To reduce the burden of existing cardholders, reduction should be given in

10
the collection of penal interest and other charges, incentive scheme should be introduced to the
account holders of the bank willing to get Debit card.

Joji, Alex N (2010), the study attempts to understand the impact of retailing and the Debit card
environment on materialism, compulsive buying, Debit card usage pattern and Debit default
among shoppers in Kochi Municipal Corporation. The goals of the study are to understand the
extent of materialism and compulsive buying among shoppers in Kochi Municipal Corporation.
The study further attempts to understand whether the presence of Debit cards has in any way
changed the pattern of spending (usage) and also refine the understanding of what influences
(causes) Debit card usage pattern. The final accomplishment of the study is to find the extent of
influence of the above said variables on Debit default.

Mandeep Kaur (2011), perception of cardholders and member establishments towards plastic
money in India is a study that examines the perspective of users as well as member establishments
has towards the use of plastic money. It focuses on some vital aspects like challenges experienced
by customers and bankers, value attribution to plastic-money adaptation and some factors
attracting them to adopt and use plastic money. It also analyses the current status and trends of
plastic money in India.

Sudhakara, A. M. (2012), the objective of this thesis is to review the technological progress made
by the banking industry in India in provision of security to its customers in the light of continuous
cyber race between devisers of security standards and the fraudsters hacking such security
standards.

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 CHAPTER-III
AN OVERVIEW OF INDUSTRIAL PROFILE
SBI:

State Bank of India (SBI) is a multinational banking and financial services company based in India.
It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of
December 2013, it had assets of US$388 billion and 16,000 branches, including 190 foreign
offices, making it the largest banking and financial services company in India by assets.

State bank of India is one of the Big four banks of India, along with ICICI Bank, Punjab
national bank and bank of Baroda.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding in 1806 of the bank of Calcutta, making it the oldest commercial bank in the Indian
subcontinent. Bank of madras merged into the other two presidencies banks-bank of Calcutta and
Bank of Bombay- to form the imperial bank of India, which in turn became the State Bank of India.
Government of India nationalized the imperial bank of India in 1955, with reserve bank of India
taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.

SBI is a regional banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.

SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIS). SBI has 14 regional hubs and
57 Zonal Offices that are located at important cities through India.

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ASSOCIATE BANKS:

SBI has five associate banks; all use the state bank of India logo, which a blue circle, and all use
the “state bank of “ name, followed by the regional headquarters” name;

 State bank of Bikaner & Jaipur

 State bank of Hyderabad
 State bank of Mysore
 State bank of Patiala
 State bank of Travancore

ICICI BANK:

ICICI Bank was established by the industrial Debit and Investment Corporation of India, an
Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was
formed in 1955 as a joint-venture of the World Bank, Indian’s public-sector banks and public
sector insurance companies to provide project financing to Indian industry. The bank was initially
known as the Industrial Debit and investment corporation of Indian bank; before it changes its
name to the abbreviated ICICI bank. The parent company was later merged with the bank.

global depository receipts (GDRS) are listed on Luxembourg stock exchange. HDFC bank ltd was
incorporated on august 30, 1994 by housing development finance Corporation ltd was amongst the
first to receive an ‘in principle’ approval from the reserve bank of India to set by a bank in the
private sector, as part of the RBI’S liberalization of the Indian banking industry. HDFC bank
commenced operations as a scheduled commercial bank in January 1995. In the year 1996, the
bank was appointed as the clearing bank by the NSCCL. In the year 1998, they launched their first
retail lending product, loans against shares. In the 1999, the bank launched online, real-time net
banking. In February 2000, times bank ltd, owned by Bennett, Coleman & co. / times group
amalgamated with the bank ltd. This was the first merger of two private banks in India. The bank
was the first bank to launch an international debit card in association with VISA (visa electron).SBI
has five associate banks; all use the state bank of India logo, which a blue circle, and all use the
“state bank of “ name, followed by the regional headquarters” name;

13
  State bank of Bikaner & Jaipur
 State bank of Hyderabad
 State bank of Mysore
 State bank of Patiala
 State bank of Travancore

ICICI BANK:

ICICI Bank was established by the industrial Debit and Investment Corporation of India, an
Indian financial institution, as a wholly owned subsidiary in 1955. The parent company was
formed in 1955 as a joint-venture of the World Bank, Indian’s public-sector banks and public
sector insurance companies to provide project financing to Indian industry. The bank was initially
known as the Industrial Debit and investment corporation of Indian bank; before it changes its
name to the abbreviated ICICI bank. The parent company was later merged with the bank.

ICICI bank launched internet banking operations in 1998.

ICICI’S shareholding in ICICI bank was reduced to 46% through a public offering of shares
of India in 1998, followed by an equity offering in the form of American depositary receipts on
the NYSE in 2000. ICICI bank acquired stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group, offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like ICICI
bank. I 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE.

In 2000, ICICI bank became the first Indian bank to list on the New York stock exchange
with its five million American depository shares issue generating a demand book 13 times the offer
size.

In October 2001, the boards of directors if ICICI and ICICI bank approve the merger of
ICICI and two of its wholly owned retail finance subsidiaries, ICICI personal financial services
limited and ICICI capital services limited, with ICICI bank. The merger was approved by

14
shareholders of ICICI and ICICI bank in 2002, by the high court of Gujarat at Ahmadabad in
March 2002 and by the high court of judicature at Mumbai and the reserve bank of India in April
2002.

In 2008, following the 2008 financial crisis, customers rushed to ICICI ATMs and branches
in some locations due to rumors of adverse financial position of ICICI bank. The reserve bank of
India issued a clarification on the financial strength of ICICI bank to dispel the rumors.

AXIS BANK:

Axis bank limited (BSE: 532215, LSE: AXBC) is the third largest private sector bank in India. It
offers the entire spectrum of financial services to customer segments covering large and Mid-
corporate, MSME, agriculture and retail businesses. Axis bank has its headquarters in Mumbai,
Maharashtra.

Axis bank began its operation in 1994, after the government of India allowed new private
banks to be established. The bank was promoted jointly by the administrator of the unit trust of
India (UTI-1), Life Insurance Company of India (LIC), general insurance corporation ltd., the
oriented Insurance Corporation and united India insurance company. The Unit Trust of India Hold
a special position in the India capital markets and has promoted many leading financial institution
in the country.

Axis bank (erstwhile UTI bank) opened its registered office in Ahmadabad and corporate
office in Mumbai in December 1993. The first branch was inaugurated in April 1994 in
Ahmadabad by Dr. Manmohan Singh, then the honorable finance minister. 467.95 Crores with the
public holding (other than promoters and GDRs) at 54.08% New Zealand born Richard chandler
owns about 9.5% share through orient global.

An online magazine named cobrapost.com released video footage from operation in Red
spider purporting to show a few employees of several Indian banks including axis bank apparently
willing to help customers to avoid paying taxes. After this, the government of India and reserve
bank of India have ordered an inequity.

The bank’s registered office is situated in Ahmadabad and its central office is located at
Mumbai. This has an extensive network of 2225 branches and extension counters). The bank has

15
a network of 11796 ATMs axis bank operates one of the world’s highest ATM sites at Thegu,
Sikkim at a height of 4023.4 Meters (13,200 ft) above sea level, and has the largest ATM network
among private banks in India.

‘Axis bank-ISIC Forex Card ‘for students would be the first photo travel currency card available
in USD, Euro, GBP and AUD currencies. Axis bank is the 1st bank in India to launch ISIC co-
branded Forex prepaid card for students.

Axis bank partners with visa to launch industry first ‘eKYC’ facility, 1st organization in
India to introduce biometric based eKYC offering convenience, speed & case to Aadhaar-
registered individuals to open bank accounts.

The and Colombo and representative officers at shanghai, Dubai, and Abu Dhabi, which
focus on bank has seven international offers with branches at Singapore, Hong Kong, Dubai (at
the DIFC corporate lending, trade finance, syndication, investment banking and liability
businesses. In addition to the above, the bank has presence in UK with its wholly owned subsidiary
axis bank UK limited.

HDFC BANK:

HDFC Bank LTD is a major Indian financial service company based in Mumbai. The bank is a
publicly held banking company engaged in providing a wide range of banking and financial
services including commercial banking and treasury operations. The bank at present has an
enviable network 2201 branches and 7110 ATMs spread in 996 cities across India. They also have
one overseas wholesale banking branch in Bahrain, a branch in Hong Kong and two representative
offices in UAE and HDB financial services ltd. The bank has three primary business segments,
namely banking, wholesale banking and treasury. The retail banking segment serves retail
customers through a branch network and other delivery channels. This segment raises deposits
from customers and makes loans and provides other services with the help of specialist product
groups to such customers. The wholesale banking segment provides loans, non-fund facilities and
transaction services to corporate, public sector units, government bodies, financial institution and
medium scale enterprises. The treasury segments includes net internet earnings on investments
portfolio of the bank.

16
 The bank’s ATM network can be accessed by all domestic and international visa/Master card,
visa electron/maestro, plus/cirrus and American Express Debit/charge cardholders. The bank’s
shares are listed on the Bombay stock exchange limited and the national stock exchange of India
ltd. The bank’s American depository shares (ADS) are listed on the New York exchange (NYSE)
the bank’s global depository receipts (GDRS) are listed on Luxembourg stock exchange. HDFC
bank ltd was incorporated on august 30, 1994 by housing development finance Corporation ltd
was amongst the first to receive an ‘in principle’ approval from the reserve bank of India to set by
a bank in the private sector, as part of the RBI’S liberalization of the Indian banking industry.
HDFC bank commenced operations as a scheduled commercial bank in January 1995. In the year
1996, the bank was appointed as the clearing bank by the NSCCL. In the year 1998, they launched
their first retail lending product, loans against shares. In the 1999, the bank launched online, real-
time net banking. In February 2000, times bank ltd, owned by Bennett, Coleman & co. / times
group amalgamated with the bank ltd. This was the first merger of two private banks in India. The
bank was the first bank to launch an international debit card in association with VISA (visa
electron).

KVB:

‘The Karur Vysya Bank limited’,popularly known as KVB was set up in 1916 by Mr. M.A
Venkatarama Chettiar and Mr. Athi Krishna chettiar, to capitalize on the previously unexploited
market of traders and agriculturists in and around Karur, a town in Tamil Nadu.

The bank is professionally managed and guided by the board of directors drawn from different
fields with vision, experience, and knowledge and business acumen.

Shedding its inherent regional flavor, the bank has now spread its wings far and wide with over
552 branches in 13 states and 3 union territories in order to gain a pan India presence. The bank
has been conducting its affairs meticulously to conform to all the prudential norms and exacting
statutory regulations.

KVB has consistently maintained strong fundamentals with a higher percentage of capital
adequacy ratios than mandated by the RBI. KVB has also been generating profits and rewarding
its stakeholders with handsome dividends since inception.

17
 Realizing that there is more money elsewhere, the bank expanded out of karur and established
approximately 563 branches in other states and union territories in order to gain a pan-India
presence. Shri K.K. Balu was appointed as an additional director of the bank on 27 January 2012.

Though the bank started with the seed capital of Rs.1 lakh, it has withstood innumerable
changes and challenges in the past few decades and has profitably emerged as one of the leading
banks in India without compromising on its fundamentals. It has 565 branches and network of
1558 ATM’s as on 01-January-2014. KVB total business till September 2013 was around 76000
crore.

ABOUT THE STUDY

Study is done to analysis the investors view on debit card option. This study is done over
Coimbatore areas. The survey was done with 100 respondents. The study has done analysis the
investment preference of people towards debit cards.

18
 CHAPTER IV

ANALYSIS AND INTERPRETATION

This chapter deals with the analysis and interpretation of STUDY ON DEBIT CARD
USERS IN COIMBATORE CITY. The data collected from the samples have systematically
applied and presented in the tables under various headings in the following pages. They were also
arranged in such a way that, a detailed analysis can be made so as to present suitable interpretation
for the same. The following are the statistical tools and techniques were used for analysis of the
data collected.

 Percentage Analysis
 Chi-square Analysis

I. SIMPLE PERCENTAGE ANALYSIS

Percentage method refers to a specified kind which is used in making comparison
between two or more series of data. Percentages are based on descriptive relationship. It
compares the relatives’ items. Since the percentage reduces everything to a common base and
thereby allow meaning comparison.

No. of respondents in each clause

Percentage Analysis = Total no of respondents X100

19
 TABLE 4.1 GENDER

Gender No. of Respondents Percent

Male 51 51.0

Female 49 49.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 51% of the respondents are ‘Male’ whereas 49% of the
respondents are ‘Female’.

The result inferred that majority 51% of the respondents are ‘Male’ only.

20
 CHART 4.1 GENDER

51.5
51
51

50.5
% of Respondents

50

49.5
49
49

48.5

48
Male Female
Gender

21
 TABLE 4.2 AGE GROUP

Age No. of Respondents Percent

18-25 years 67 67.0

26-35 years 22 22.0

36-50 years 9 9.0

Above 51 years 2 2.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 67% of the respondents are between ’18 to 25 years’ of age
whereas 22% of the respondents are between ’26 to 35 years’ of age, 9% of the respondents are
between ’36 to 50 years’of age and the remaining 2% of the respondents are ‘above 51 years’ of
age.The result inferred that majority 67% of the respondents are between ’18 to 25 years’ of age.

22
 CHART 4.2 AGE GROUP

80
70 67

60
% of Respondents

50
40
30 22
20
9
10 2
0
18-25 years 26-35 years 36-50 years Above 51 years
Age

23
 TABLE 4.3 PROFESSION

Profession No. of Respondents Percent

Student 60 60.0

Business 24 24.0

Service 9 9.0

Government employee 7 7.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 60% of the respondents are ‘Student’, 24% of the respondents
are doing ‘Business’, 9% of the respondents are in ‘Service’ and the remaining 7% of the
respondents are ‘Government Employee’.

The result inferred that majority 60% of the respondents are ‘Student’.

24
 CHART 4.3 PROFESSION

70
60
60

50
% of Respondents

40

30 24
20
9 7
10

0
Student Business Service Government employee
Profession

25
 TABLE 4.4 ANNUAL INCOME

Annual income No. of Respondents Percent

Rs.10001-Rs.15000 40 40.0

Rs.15001-Rs.20000 27 27.0

Rs.20001-Rs.30000 24 24.0

Above Rs.30001 9 9.0

Total 100 100.0

Source: Primary Data

INTERPRETATION

The above table depicts that 40% of the respondents’ annual income is between ‘Rs.10001 to
Rs.15000’, 27% of the respondents’ annual income is between ‘Rs.15001 to Rs.20000’, 24% of
the respondents’ annual income is between ‘Rs.20001 to Rs.30000’ and the remaining 9% of the
respondents’ annual income is ‘Above Rs.30001’.

The result inferred that majority 40% of the respondents’ annual income is between ‘Rs.10001 to
Rs.15000’.

26
 CHART 4.4 ANNUAL INCOME

45
40
40
35
% of Respondents

30 27
24
25
20
15
9
10
5
0
Rs.10001-Rs.15000 Rs.15001-Rs.20000 Rs.20001-Rs.30000 Above Rs.30001
Annual income

27
 TABLE 4.5 MARITAL STATUSES

Martial status No. of Respondents Percent

Single 68 68.0

Married 32 32.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 68% of the respondents are ‘Unmarried’ whereas 32% of the
respondents are ‘Married’.

The result inferred that majority 68% of the respondents are Unmarried.

28
 CHART 4.5 MARITAL STATUS

80
68
70
60
% of Respondents

50
40
32
30
20
10
0
Single Married
Martial status

29
 TABLE 4.6 NUMBER OF FAMILY MEMBERS

Number of family numbers No. of Respondents Percent

4 members 69 69.0

2 members 31 31.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 69% of the respondents’ family head count is ‘4 members’
whereas 31% of the respondents’ family head count is ‘2 members’.

The result inferred that majority 69% of the respondents’ family head count is ‘4 members’.

30
 CHART 4.6 NUMBER OF FAMILY MEMBERS

80
69
70
60
% of Respondents

50
40
31
30
20
10
0
4 members 2 members
Number of family numbers

31
 TABLE 4.7 OWN DEBIT CARDS

Own Debit Cards No. of Respondents Percent

Yes 84 84.0

No 16 16.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 84% of the respondents are having debit cards whereas 16%
of the respondents are not having debit cards.

The result inferred that majority 84% of the respondents are having debit cards.

32
 CHART 4.7 OWN DEBIT CARDS

90 84
80
70
% of Respondents

60
50
40
30
20 16

10
0
Yes No
Own Debit Cards

33
 TYPETABLE 4.8 TYPE OF CARD USING

TYPE OF CARD USING No. of Respondents Percent

Master 32 32.0

Visa 40 40.0

Maestro 23 23.0

Others 5 5.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 32% of the respondents are having ‘Master’ debit card whereas
40% of the respondents are having ‘Visa Debit card’, 23% of the respondents are having ‘Maestro
Debit card’ and the remaining 5% of the respondents are having ‘Others’ type of card.

The result inferred that majority 40% of the respondents are having ‘Visa’ debit card.

34
 CHART 4.8 TYPE OF CARD USING

45
40
40
35 32
% of Respondents

30
25 23

20
15
10
5
5
0
Master Visa Maestro Others
TYPE OF CARD USING

35
 TABLE 4.9 NUMBER OF DEBIT CARDS HAVING

NUMBER OF DEBIT CARDS

HAVING No. of Respondents Percent

One 54 54.0

Two 33 33.0

Three 9 9.0

More than three 4 4.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 54% of the respondents are having ‘one’ number of debit cards
whereas 33% of the respondents are having ‘Two’ cards, 9% of the respondents are having ‘Three’
cards and the remaining 4% of the respondents are having ‘More than three’.

The result inferred that majority 54% of the respondents are having ‘One debit card’.

36
 CHART 4.9 NUMBER OF DEBIT CARDS HAVING

60
54

50
% of Respondents

40
33
30

20
9
10
4

0
One Two Three More than three
NUMBER OF DEBIT CARDS HAVING

37
 TABLE 4.10 PURPOSE OF USING DEBIT CARDS

PURPOSE OF USING DEBIT

CARDS No. of Respondents Percent

Cash withdraw 46 46.0

Online purchase 38 38.0

Shopping 16 16.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 46% of the respondents’ purpose of using debit cards is ‘Cash
Withdraw’ whereas 38% of the respondents’ purpose of using debit cards is ‘Online Purchase’ and
the remaining 16% of the respondents’ purpose of using debit cards is ‘Shopping’.

The result inferred that majority 46% of the respondents’ purpose of using debit cards is
‘Cash Withdraw’.

38
 CHART 4.10 PURPOSE OF USING DEBIT CARDS

50 46
45
40 38
% of Respondents

35
30
25
20 16
15
10
5
0
Cash withdraw Online purchase Shopping
PURPOSE OF USING DEBIT CARDS

39
 TABLE 4.11 PERIOD OF USAGE

Period of usage No. of Respondents Percent

Less than 1 years 23 23.0

1-5 years 28 28.0

6-10 years 33 33.0

Above 11 years 16 16.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 23% of the respondents’ period of usage is ‘Less than in 1
year’ whereas 28% of the respondents’ period of usage is between ‘1 to 5 years’, 33% of the
respondents’ period of usage is between ‘6 to 10 years’ and the remaining 16% of the respondents’
period of usage is ‘Above 11 years’.

The result inferred that majority 33% of the respondents’ period of usage is between ‘1 to
5 years’.

40
 CHART 4.11 PERIOD OF USAGE

35 33
30 28
% of Respondents

25 23
20 16
15
10
5
0
Less than 1 years 1-5 years 6-10 years Above 11 years
Period of usage

41
 TABLE 4.12 MODE OF PAYMENT FOR PURCHASE OF LUXURY AND DURABLE
GOODS

Mode of payment for purchase of

luxury and durable goods
No. of Respondents Percent
Cash 29 29.0
Card 53 53.0
Cheque 16 16.0
Ecs 2 2.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 29% of the respondents’ mode of payment for purchase of
luxury and durable goods is ‘Cash’ whereas 53% of the respondents’ mode of payment for
purchase of luxury and durable goods is ‘Card’, 16% of the respondents’ mode of payment for
purchase of luxury and durable goods is ‘Cheque’ and the remaining 2% of the respondents’ mode
of payment for purchase of luxury and durable goods is ‘ECS’.

The result inferred that majority 53% of the respondents’ mode of payment for purchase of
luxury and durable goods is ‘Card’.

42
CHART 4.12 MODE OF PAYMENT FOR PURCHASE OF LUXURY AND DURABLE
GOODS

60
53
50
% of Respondents

40
29
30

20 16

10
2
0
Cash Card Cheque Ecs
Mode of payment for purchase of luxury and durable goods

43
 TABLE 4.13 PREFER PLASTIC MONEY

PREFER PLASTIC MONEY No. of Respondents Percent

Yes 71 71.0

No 29 29.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 71% of the respondents prefer plastic money whereas 29% of
the respondents not preferring plastic money.

The result inferred that majority 71% of the respondents prefer plastic money.

44
 CHART 4.13 PREFER PLASTIC MONEY

80
71
70
60
% of Respondents

50
40
29
30
20
10
0
Yes No
PREFER PLASTIC MONEY

45
 TABLE 4.14 REASON FOR NOT PREFERRING PLASTIC MONEY

Reason for not preferring plastic

money
No. of Respondents Percent
Instable income 18 18.0
Lack of knowledge 40 40.0
Malpractices by outlet owners 29 29.0
Mal practice by bankers 13 13.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 18% of the respondents stated ‘Instable income’ is the reason
for not preferring plastic money whereas 40% of the respondents stated ‘Lack of knowledge’, 29%
of the respondents stated ‘Malpractices by outlet owners’ and the remaining 13% of the
respondents stated ‘Mal practice by bankers’.

The result inferred that majority 40% of the respondents stated ‘Lack of knowledge’ is the
main reason for not preferring plastic money.

46
 CHART 4.14 REASON FOR NOT PREFERRING PLASTIC MONEY

45
40
40
35
% of Respondents

29
30
25
20 18
15 13
10
5
0
Instable income Lack of knowledge Malpractices by outlet Mal practice by
owners bankers
Reason for not preferring plastic money

47
 TABLE 4.15 OPT FOR EASY AND MORE LIFE

OPT FOR EASY AND MORE LIFE No. of Respondents Percent

Paper money 44 44.0

Plastic money 56 56.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 44% of the respondents opt ‘Paper money’ for easy and more
life whereas 56% of the respondents opt ‘Plastic money’.

The result inferred that majority 56% of the respondents opt ‘Plastic Money’ for easy and
more life.

48
 CHART 4.15 OPT FOR EASY AND MORE LIFE

60 56

50
44
% of Respondents

40

30

20

10

0
Paper money Plastic money
OPT FOR EASY AND MORE LIFE

49
 TABLE 4.16 TYPE OF SECURITY MEASUREMENT SUITABLE TO STOP MISUSE
OF PLASTIC MONEY

Type of security measurement

suitable to stop misuse of plastic
money
No. of Respondents Percent
Password 26 26.0
Pin 28 28.0
Photo card 31 31.0
Biological imprints 15 15.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 26% of the respondents stated ‘Password’ is the type of
security measurement suitable to stop misuse of plastic money whereas 28% of the respondents
stated ‘PIN’, 31% of the respondents stated ‘Photo card’ and the remaining 15% of the respondents
stated ‘Biological imprints’ is the type of security measurement suitable to stop misuse of plastic
money.

The result inferred that majority 31% of the respondents stated ‘Photo Card’ is the type of
security measurement suitable to stop misuse of plastic money.

50
CHART 4.16 TYPE OF SECURITY MEASUREMENT SUITABLE TO STOP MISUSE
OF PLASTIC MONEY

35
31
30 28
26
25
% of Respondents

20
15
15

10

0
Password Pin Photo card Biological imprints
Type of security measurement suitable to stop misuse of plastic money

51
 TABLE 4.17 BEST IN DEBIT CARD

Best in debit card No. of Respondents Percent

International debit card 59 59.0

National debit card 41 41.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 59% of the respondents stated ‘International Debit card’ is the
best card whereas 41% of the respondents stated ‘National Debit card’.

The result inferred that majority 59% of the respondents stated ‘International Debit card’
is the best card.

52
 CHART 4.17 BEST IN DEBIT CARD

70
59
60

50
% of Respondents

41
40

30

20

10

0
International debit card National debit card
Best in debit card

53
 TABLE 4.18 FREQUENCY OF USING DEBIT CARDS

Frequency of using Debit cards No. of Respondents Percent

Daily 17 17.0

2-3 times a week 31 31.0

Monthly 41 41.0

Hardly ever 11 11.0

Total 100 100.0

Source: Primary Data

INTERPRETATION:

The above table depicts that 17% of the respondents using debit cards ‘Daily’ whereas 31%
of the respondents using debit cards ‘2 to 3 times in a week’, 41% of the respondents using debit
cards ‘Monthly’ and the remaining 11% of the respondents using debit cards ‘Hardly Ever’.

The result inferred that majority 41% of the respondents using debit cards ‘Monthly’ once.

54
 CHART 4.18 FREQUENCY OF USING DEBIT CARDS

45 41
40
35 31
30
% of Respondents

25
20 17
15 11
10
5
0
Daily 2-3 times a week Monthly Hardly ever
Frequency of using Debit cards

55
 TABLE 4.19 FREQUENCY OF USING DEBIT CARDS IN BRANCH BANKING

Branch banking No. of Respondents Percent

Nil 19 19.0
1 to 3 times 47 47.0
4 to 8 times 21 21.0
8 to 12 times 6 6.0
Over 13 Times 7 7.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 19% of the respondents’ does not use debit cards in branch
banking whereas 47% of the respondents’ use ‘1 to 3 times’ , 21% of the respondents’ use ‘4 to 8
times’, 6% of the respondents’ use ‘8 to 12 times’ and the remaining 7% of the respondents’ use
‘Over 13 times’.

The result inferred that majority 47% of the respondents use debit cards ‘1 to 3 times’ in
branch banking.

56
 CHART 4.19 FREQUENCY OF USING DEBIT CARDS IN BRANCH BANKING

50 47
45
40
% of Respondents

35
30
25 21
19
20
15
10 6 7
5
0
Nil 1 to 3 times 4 to 8 times 8 to 12 times Over 13 Times
Branch banking

57
 TABLE 4.20 FREQUENCY OF USING DEBIT CARDS IN ATM

Atm No. of Respondents Percent

Nil 9 9.0
1 to 3 43 43.0
4 to 8 34 34.0
8 to 12 11 11.0
Over 13 Times 3 3.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 9% of the respondents’ does not use debit cards in ATM
whereas 43% of the respondents’ use ‘1 to 3 times’ , 34% of the respondents’ use ‘4 to 8 times’,
11% of the respondents’ use ‘8 to 12 times’ and the remaining 3% of the respondents’ use ‘Over
13 times’.

The result inferred that majority 43% of the respondents use debit cards ‘1 to 3 times’ in
ATM.

58
 CHART 4.20 FREQUENCY OF USING DEBIT CARDS IN ATM

50
45 43
40
34
% of Respondents

35
30
25
20
15 11
9
10
5 3
0
Nil 1 to 3 4 to 8 8 to 12 Over 13 Times
Atm

59
TABLE 4.21 FREQUENCY OF USING DEBITCARDS IN INTERNET BANKING

Internet banking No. of Respondents Percent

Nil 18 18.0
1 to 3 32 32.0
4 to 8 35 35.0
8 to 12 10 10.0
Over 13 Times 5 5.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 18% of the respondents’ does not use debit cards in Internet
Banking whereas 32% of the respondents’ use ‘1 to 3 times’ , 35% of the respondents’ use ‘4 to 8
times’, 10% of the respondents’ use ‘8 to 12 times’ and the remaining 5% of the respondents’ use
‘Over 13 times’.

The result inferred that majority 35% of the respondents use debit cards ‘4 to 8 times’ in
Internet Banking.

60
 CHART 4.21 FREQUENCY OF USING DEBIT CARDS IN INTERNET BANKING

40
35
35 32
30
% of Respondents

25
20 18

15
10
10
5
5
0
Nil 1 to 3 4 to 8 8 to 12 Over 13 Times
Internet banking

61
 TABLE 4.22 FREQUENCY OF USING DEBIT CARDS IN TELEPHONE BANKING

Telephone banking
No. of Respondents Percent
Nil 22 22.0
1 to 3 35 35.0
4 to 8 22 22.0
8 to 12 16 16.0
Over 13 Times 5 5.0
Total 100 100.0
Source: Primary Data
INTERPRETATION:

The above table depicts that 22% of the respondents’ does not use debit cards in Telephone
Banking whereas 35% of the respondents’ use ‘1 to 3 times’ , 22% of the respondents’ use ‘4 to 8
times’, 16% of the respondents’ use ‘8 to 12 times’ and the remaining 5% of the respondents’ use
‘Over 13 times’.

The result inferred that majority 35% of the respondents use debit cards ‘1 to 3 times’ in
telephone Banking.

62
CHART 4.22 FREQUENCY OF USING DEBIT CARDS IN TELEPHONE BANKING

40
35
35
30
25 22 22
% of Respondents

20
16
15
10
5
5
0
Nil 1 to 3 4 to 8 8 to 12 Over 13 Times
Telephone banking

63
TABLE 4.23 FREQUENCY OF USING DEBIT CARDS IN MOBILE BANKING

Mobile banking No. of Respondents Percent

Nil 27 27.0
1 to 3 30 30.0
4 to 8 22 22.0
8 to 12 11 11.0
Over 13 Times 10 10.0
Total 100 100.0
Source: Primary Data

INTERPRETATION:

The above table depicts that 27% of the respondents’ does not use debit cards in Mobile
Banking whereas 30% of the respondents’ use ‘1 to 3 times’ , 22% of the respondents’ use ‘4 to 8
times’, 11% of the respondents’ use ‘8 to 12 times’ and the remaining 10% of the respondents’ use
‘Over 13 times’.

The result inferred that majority 30% of the respondents use debit cards‘1 to 3 times’ in
mobile Banking.

64
 CHART 4.23 FREQUENCY OF USING DEBIT CARDS IN MOBILE BANKING

35
30
30 27
25
% of Respondents

22
20

15
11 10
10

0
Nil 1 to 3 4 to 8 8 to 12 Over 13 Times
Mobile banking

65
 II. CHI-SQUARE ANALYSIS
The Chi-square test procedure tabulates a variable into categories and computes a chi-
square statistic. This goodness-of-fit test compares the observed and expected frequencies in
each category to test that all categories contain the same proportion of values or test that each
category contains a user-specified proportion of values. Statistical method to test whether two
(or more) variables are: (1) independent or (2) homogenous. The chi-square test for
independence examines whether knowing the value of one variable helps to estimate the value
of another variable. The chi-square test for homogeneity examines whether two population
have the same proportion of observations with a common characteristic.
X2= (O-E)2/ E
Degree of freedom= v=(R-1)(C-1)
Where,
O= observation No. of Respondents
E= expected No. of Respondents (column total x row total)/grand total
R= no of rows
C= no of columns

A. RELATIONSHIP BETWEEN THE ANNUAL INCOME AND NUMBER OF DEBIT

CARDS

Null Hypothesis H0: There is no significant relationship between the annual income and number
of debit cards

66
 TABLE 4.24

CROSS TABULATION - ANNUAL INCOME AND NUMBER OF DEBIT CARDS

HAVING

Annual income More than

One Two Three three Total

Rs.10001-
37 2 1 0 40
Rs.15000

Rs.15001-
12 12 3 0 27
Rs.20000

Rs.20001-
5 13 5 1 24
Rs.30000

Above Rs.30001 0 6 0 3 9

Total 54 33 9 4 100

Degrees of Freedom = (Number of Columns -1)x (Number of Rows -1)

= (4-1) x (4-1)

= 3x 3

=9

Table Value for the Degree of freedom 9 at 0.05 significant level = 16.919

67
 TABLE 4.25

CHI-SQUARE CALCULATION - ANNUAL INCOME AND NUMBER OF DEBIT

CARDS HAVING

Observed Frequency Expected (O-E) (O-E)2 (O-E)2 / E

(O) Frequency

(E)

37 21.60 15.40 237.16 10.98

2 13.20 -11.20 125.44 9.50
1 3.60 -2.60 6.76 1.88
0 1.60 -1.60 2.56 1.60
12 14.58 -2.58 6.66 0.46
12 8.91 3.09 9.55 1.07
3 2.43 0.57 0.32 0.13
0 1.08 -1.08 1.17 1.08
5 12.96 -7.96 63.36 4.89
13 7.92 5.08 25.81 3.26
5 2.16 2.84 8.07 3.73
1 0.96 0.04 0.00 0.00
0 4.86 -4.86 23.62 4.86
6 2.97 3.03 9.18 3.09
0 0.81 -0.81 0.66 0.81
3 0.36 2.64 6.97 19.36
Calculate Chi-Square Value 66.71

68
INFERENCE:

From the above table, it is inferred that the calculated chi-square value66.71is greater than
the chi-square table value 16.919. Hence the null hypothesis is rejected. The result shows that there
is a significant relationship between the annual income and number of debit cards having.

B. RELATIONSHIP BETWEEN THE PROFESSION AND PURPOSE OF USING

DEBIT CARDS

Null Hypothesis H0 : There is no significant relationship between the profession and

purpose of using debit cards

TABLE 4.26

CROSS TABULATION - PROFESSION AND PURPOSE OF USING DEBIT CARDS

Profession Cash withdrawl Online purchase Shopping Total

Student 25 27 8 60

Business 12 6 6 24

Service 3 4 2 9

Government employee 6 1 0 7

Total 46 38 16 100

Degrees of Freedom = (Number of Columns -1) x (Number of Rows -1)

= (3-1) x (4-1)

=2x3

=6

Table Value for the Degree of freedom 6at 0.05 significant level = 12.592

69
 TABLE 4.27

CHI-SQUARE CALCULATION - PROFESSION AND PURPOSE OF USING DEBIT

CARDS

Observed Frequency Expected (O-E) (O-E)2 (O-E)2 / E

(O) Frequency

(E)

25 27.60 -2.60 6.76 0.24

27 22.80 4.20 17.64 0.77
8 9.60 -1.60 2.56 0.27
12 11.04 0.96 0.92 0.08
6 9.12 -3.12 9.73 1.07
6 3.84 2.16 4.67 1.22
3 4.14 -1.14 1.30 0.31
4 3.42 0.58 0.34 0.10
2 1.44 0.56 0.31 0.22
6 3.22 2.78 7.73 2.40
1 2.66 -1.66 2.76 1.04
0 1.12 -1.12 1.25 1.12
Calculate Chi-Square Value 8.84

INFERENCE:

From the above table, it is inferred that the calculated chi-square value 8.84 is less than the
chi-square table value 12.592. Hence the null hypothesis is accepted. The result shows that there
is no significant relationship between the profession and purpose of using debit cards.

70
 CHAPTER – V

5.1 FINDINGS

I. SIMPLE PERCENTAGE ANALYSIS

 Majority 51% of the respondents are ‘Male’ only.

 Majority 67% of the respondents are between ’18 to 25 years’ of age.
 Majority 60% of the respondents are ‘Student’.
 Majority 40% of the respondents’ annual income is between ‘Rs.10001 to Rs.15000’.
 Majority 68% of the respondents are’Single’.
 Majority 69% of the respondents’ family head count is ‘4 members’.
 Majority 84% of the respondents are having debit cards.
 Majority 40% of the respondents are having ‘Visa’ debit card.
 Majority 54% of the respondents are having ‘One debit card’.
 Majority 46% of the respondents’ purpose of using debitcards is ‘Cash Withdraw’.
 Majority 33% of the respondents’ period of usage is between ‘1 to 5 years’.
 Majority 53% of the respondents’ mode of payment for purchase of luxury and durable
goods is ‘Card’.
 Majority 71% of the respondents prefer plastic money.
 Majority 40% of the respondents stated ‘Lack of knowledge’ is the main reason for not
preferring plastic money.
 Majority 56% of the respondents opt ‘Plastic Money’ for easy and more life.
 Majority 31% of the respondents stated ‘Photo Card’ is the type of security measurement
suitable to stop misuse of plastic money.
 Majority 59% of the respondents stated ‘International Debit card’ is the best card.
 Majority 41% of the respondents using debit cards ‘Monthly’ once.
 Majority 47% of the respondents use debit cards ‘1 to 3 times’ in branch banking.
 Majority 43% of the respondents use debit cards ‘1 to 3 times’ in ATM.
 Majority 35% of the respondents use debit cards ‘4 to 8 times’ in Internet Banking.
 Majority 35% of the respondents use debit cards ‘1 to 3 times’ in telephone Banking.
 Majority 30% of the respondents use debit cards‘1 to 3 times’ in mobile Banking.
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II.CHI-SQUARE ANALYSIS
 There is a significant relationship between the annual income and number of debit cards
having.
 There is no significant relationship between the profession and purpose of using debit
cards.

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SUGGESTION
 The relationship between Debit Card and customers is good. So the bank wants to provide
advance technology so good.
 The Bank should concentrate more on maximum Debit Card centers open, to gain more
new customers.
 The services which provided by bank is satisfactory.
 Provide insurance facilities for all account holders.
 Provide some rates for all account holders with free of cost.
 It concluded that overall position of the Debit Card during the study period is satisfactory.

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 5.3 CONCLUSIONS

Perhaps the single biggest benefit of using a debit cards is that you can only spend what money
you have. It can help you save money and stay out of debt. For this reason, debit cards are great
for people who tend to spend too much money. Like cash, debit cards don’t have any interest. You
can use them as much as you want and never fear high interest rates. You won’t have to pay back
any extra money on your purchases since no payments are involved. It is easy to quickly cancel or
put a hold on your card if you have misplaced it or lost it. Most banks have a 24 hour hotline that
you have can call to do this. It is also less of a problem if you debit cards is that you have the
option of getting cash back after you make a purchase.

This basically means that you can make a small purchase and then receive some extra cash back
for free. Debit cards are also one of the most secure methods of making purchases around. Debit
card purchase requires that you actually your debit card and your money. The benefits of using a
debit card are numerous. If you are in debit or trying to save money, then you need to strongly
consider one. Even if you are not in debit or struggling to save money, a debit card could be very
helpful.

A debit card is basically an all-around safer version. The proposed data, mining techniques in
identification and analysis of source data collected from various resources and by interviewing
peoples from different background are found to be very effective and its implementation produces
great accuracy.

The proposed system was able to obtain results by analyzing the data with the help of two analysis
methods namely simple percentage analysis. The simple percentage analysis and the chi-square
analysis. The simple percentage analysis was carried out based on the gender, age group,
profession, annual income, marital status, number of family numbers, own debit cards and
frequency of usage of the cards, period of usage of the cards and many more.

Many solutions have been provided by many researchers and as the time goes by araisal of
new problems that can bypass the analysis of the system proposed by the experts even more
difficult. Thus proposing a system which gets updated based on the seasonal changes will sum up
to the betterment of the facilities provided to the customers by the bank.

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 BIBLIOGRAPHY

 Sarma E. J, (1989), Consumer Response to Marketing of Bank Debit Card Service – A

Study of certain segments. Ph.D. Thesis, University of Mumbai, pp. 206.
 J. Yeo. “Household Debit card choice and usage.” Unpublished Ph.D. Thesis. US: Cornell
University (1990), pp.135.
 Yeo Jung Sang, “House hold Debit Card s Choice and Usage” Ph.D., Thesis Cornell
University, Dissertation Abstract International, Volume 51, No.4, October 1992, pp.
1140A.

 T. Punjavat. “Debit card: Understanding international graduate students.” Unpublished

Ph.D. Thesis. Corvallis, USA: Oregon State University (August 1993), pp.441.
 B.J. Parimala (2001). “A study of bank services with special reference to the Debit cards
in Trichirappalli, Tamilnadu.” Unpublished Ph.D. Thesis, Tiruchirappalli, India:
Bharathidasan University, pp.214

 N. Swarnalatha. “‘Debit cards services’: A study based on the perception of selected Debit
cardholders of various issuing banks in Chennai city.” Unpublished Ph.D. Thesis, Chennai:
University of Madras, India (2002), pp.282

 Prakash. C, “Impact of Debit Cards on Spending Patterns” 2003, Unpublished MPhil

Thesis, Bharathidasan University, pp. 89-92.
 V. K. Anitha, “A Study on Customer’s Attitude Towards Debit Cards with Specific
Reference to Citi Bank Cards in Tiruchirappalli Town, Nov 2003, Bharathidasan
University pp. 80-82.
 S. Murugesan. “A study of bank Debit card culture in Chennai city.” Unpublished Ph.D.
Thesis. Tiruchirappalli: Bharathidasan University, India (2007), pp.259.

 Joji, Alex N (2010), Compulsive buying behaviour and its relationship on Debit default,
Department of Management Studies, Kannur University
 20 Mandeep Kaur (2011), Perception of card users and member establishments towards
plastic Money in India, Guru Nanak Dev University
 Sudhakara, A. M.(2012), An evaluation of security standards for online banking adopted
by Indian Banks offering Debit debit card facility, Department of Commerce, University
of Mysore

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 APPENDIX
QUESTIONNAIRE:

1. Name:

2. Address:

3. Contact number:

4. Name of the branch & bank:

5. Nationality:

6. Gender:

a) Male b) Female

7. Age:
a) 18-25 b) 26-35
c) 36-50 d) Above 51 years

8. Profession:
a) Student b) Business
c) Service d) Government employee

9. Annual income:

a) 10001-15000 b) 15001-20000
c) 20001-30000 d) Above 30001

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10. Martial Status:

a) Single b) Married
11. Number of family numbers

a) 4 b) 3
c) 2 d) Above 4

12. Do you have a debit cards?

a) Yes b) No

13. Which card do you use?

a) One b) Two
c) Three d) More than three

14. For what purpose you used your debit cards?

a) Cash withdrawal b) Online purchase
c) Shopping d) Others

15. Status of usage:

a) Less than 1 year b) 1-5 years
c) 6-10 years d) Above 11 years

16. How do you make payment for purchase of luxury and durable goods?
a) Cash b) Card
c) Cheque d) Ecs

17. Do you prefer plastic money?

a) Yes b) No

18. If, no why you do not prefer plastic money?

a) Instable income b) Lack of knowledge

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 c) Malpractices by outlet owners d) Mal practice by bankers

19. Which one do you think can be carried and kept easy and has more life?
a)Paper money b) plastic money

20. Which type of security measurement do you think is suitable to stop misuse of plastic
money?
a) Password b) pin
c) Photo card d) Biological imprints

21. Which of the following describes best your debit card?

a) International debit card b) National debit card

22. On an how many times do you use your debit cards?

a) Daily b) 2-3 a week
c) Monthly d) Hardly ever
23. How frequently do you use the following banking service per month?

NIL 1 to 3 4 to 8 8 to 12 Over 13
Times
Branch
banking
ATM
Internet
banking
Telephone
banking
Mobil
banking

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