“CUSTOMER PERCEPTION ON CREDIT CARD

WITH SPECIAL REFERANCE TO SBI CREDIT

CARD”

A Project Report

Submitted in partial fulfilment of the requirements for the

award of degree of

MASTER OF BUSINESS ADMINISTRATION

(Finance)

Submitted By
PRINCE RAJ JAISHWAL
Registration Number: 322101420

Submitted to
LOVELY PROFESSIONAL UNIVERSITY PHAGWARA, PUNJAB

Centre for Distance and Online Education

LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA, PUNJAB

2022-2024

1
 Student’s Declaration

To whom so ever it may concern

I, Prince Raj Jaishwal, Reg. No. 322101420, hereby declare that the work done by

me on “CUSTOMER PERCEPTION ON CREDIT CARD WITH SPECIAL

REFERANCE TO SBI CREDIT CARD” is a record of original work for the partial

fulfilment of the requirements for the award of the degree, MBA (Finance).

Prince Raj Jaishwal (322101420)

Dated:03/08/2024

2
Date:01/08/2024

CERTIFICATE

This is to certify that Prince Raj Jaishwal (Reg. No. 322101420) student of MBA 4th

semester from Lovely Professional University, Phagwara, Punjab has been successfully

completed his internship report entitled “ CUSTOMER PERCEPTION ON CREDIT

CARD WITH SPECIAL REFERANCE TO SBI CREDIT CARD ”. During him project

tenure in the company, we found him hard working, sincere and diligent person and his

behaviour and conduct was good. We wish him all the best for his future endeavors.

Aditya P Karan
Sales Manager

3
 Address: RED CROSS BUILDING, Muzaffarpur, Bihar 842001

ACKNOWLEDGEMENT

Every work constitutes great deal of assistance and guidance from the people

concerned and this particular project is of no exception.

A project of the nature is surely a result of tremendous support, guidance,

encouragement and help.

Wish to place on record my sincere gratitude to Centre for Distance and Online

Education, Lovely Professional University, Punjab, for giving me opportunity to complete

my project.

Also, wish to acknowledge enthusiastic encouragement and support extended to me by

my family members. At last, I would like to thank all the faculty of business management

to help me completing this project.

I’m also thankful to my friends who provided me their constant support and assistance.

Prince Raj Jaishwal (322101420)

4
 ABSTRACT

Credit cards have evolved into a crucial financial instrument, providing convenience and
flexibility to consumers. This abstract explores the role of credit cards, focusing specifically
on the SBI Credit Card.

The study examines the benefits and challenges associated with SBI Credit Cards, analyzing
their impact on consumer behavior, financial management, and creditworthiness. SBI Credit
Cards offer various features, including reward programs, cashback offers, and promotional
discounts, which cater to diverse consumer needs. The research delves into the effectiveness
of these features in enhancing customer satisfaction and loyalty.

Furthermore, the study investigates the credit card adoption rate among different
demographic groups, assessing how factors such as income level, spending habits, and credit
history influence the usage of SBI Credit Cards. It also evaluates the risk management
practices employed by SBI to mitigate potential defaults and fraudulent activities.

By comparing SBI Credit Cards with those offered by other major issuers, the research
provides insights into competitive positioning and strategic advantages. The findings aim to
offer recommendations for optimizing credit card offerings and improving customer
engagement.

5
 Table of Contents

S. No. Title Page no.

1 Declaration by Student 2
2 Certificate 3
3 Acknowledgement 4
4 Abstract 5
5 List of Tables 7
6 List of Schemes 8-9
7 List of Abbreviations 10
8 Chapter-1 Introduction 11-15

9 Chapter-2 Review of Literature 16-31

a) Company Profile
b) Objective of Study
c) Scope of Study
10 Chapter-3 Implementation of project 32-45
a) Research Methodology
b) Data Analysis and Interpretation
11 Chapter-4 Results and Discussions 46-47

12 Final Chapter- Conclusion and Future Scope 48-51

13 Suggestion 52
14 Annexures 53-55
 References
 Questionnaire

6
 LIST OF TABLES

Tables Title Page No.

No.
1 Mode Of Internet Banking 36

2 Debit Or Credit Card Used for Safe Mode 37

3 Use Credit Card or Debit Card Use Mostly 38

4 Bank Provide Good Service 39

5 Happy With Credit Card 40

6 Keep Using the Credit Card 41

7 Use The SBI Card 42

8 Reasons For Choosing SBI Card Services 43

9 Card Features Do You Use 44

10 Long Has Your Bank Been Providing SBI Card 45

LIST OF SCHEMES

7
State Bank of India (SBI) offers a variety of credit card schemes tailored to meet different
customer needs. Here's a list of some prominent schemes associated with SBI Credit Cards:

1. SBI Card PRIME

o Welcome e-gift voucher worth Rs. 3,000 from premium brands.

o Complimentary Club Vistara membership.

o 10 Reward Points per Rs. 100 spent on dining, groceries, and department
stores.

o Milestone benefits and complimentary airport lounge access.

2. SBI Card ELITE

o Welcome e-gift voucher worth Rs. 5,000.

o 5X Reward Points on dining, departmental stores, and grocery spends.

o Complimentary movie tickets worth Rs. 6,000 per year.

o Complimentary access to airport lounges.

3. SBI Simply SAVE Card

o 10X Reward Points on dining, movies, groceries, and departmental stores.

o Spend-based fee reversal.

o Fuel surcharge waiver.

4. SBI Simply CLICK Card

o 10X Reward Points on online spends with exclusive partners.

o E-gift voucher on annual fee payment.

o 1% fuel surcharge waiver.

5. SBI Card PULSE

8
 o Health and wellness benefits.

o Complimentary membership to fitness centers.

o Reward Points on health-related expenditures.

6. SBI Card Unnati

o Lifetime free card with no joining fee for the first four years.

o 1 Reward Point for every Rs. 100 spent.

o Fuel surcharge waiver.

7. SBI Card Yatra

o Travel benefits and discounts on Yatra.com.

o 6X Reward Points on Yatra.com spends.

o Complimentary air accident cover.

8. SBI Card IRCTC

o Travel benefits on Indian Railways bookings.

o Reward Points on railway bookings through IRCTC.

o Complimentary access to railway lounges.

LIST OF ABBREVIATIONS

9
List of abbreviations related to credit cards, with a special reference to SBI Credit Cards, can
help in understanding various terms used in the industry. Here's a comprehensive list:

List of Abbreviations

General Credit Card Terms:

1. APR - Annual Percentage Rate

2. CVV - Card Verification Value

3. EMI - Equated Monthly Installment

4. ECS - Electronic Clearing Service

5. KYC - Know Your Customer

6. OTP - One-Time Password

7. PIN - Personal Identification Number

8. RFID - Radio Frequency Identification

9. RTGS - Real-Time Gross Settlement

10. UPI - Unified Payments Interface

SBI Credit Card Specific Terms:

1. SBI - State Bank of India

2. PIVD - Primary Issuer Verification Data

3. SMS - Short Message Service (used for alerts and notifications)

4. MDR - Merchant Discount Rate

5. BSP - Balance Transfer on EMI

6. IR - Interest Rate

10
 INTRODUCTION

INTRODUCTION OF CUSTOMER PREFERENCE

The preferences of the consumers are a positive motivation, expressed by the affective

compatibility towards a product, service or trading form. We’re not dealing with an internal

bodily function, but a quality of objects that aims to fulfil our needs, quality acquired within

the connection between man and the merchandise able to fulfil these needs. Preferences can

be triggered by: the features related to the material substance of the goods (shape, size, print,

taste, colour, consistency, package, etc.); elements referring to label, name, use instructions

that accompany the product; the statute granted to the person owning and using that

particular product. Theoreticians, at some point, had the tendency to limit the preference to

the concept of choice; however, choice and preference are two radically different entities:

the first one is an action and the other one, a state of mind.

Preferences are the result of a long-term relationship between the brand and the

consumer, as the latter learns to associate the brand with a symbol and perceive it as having

high quality. Following these deep connections created over the course of time, a strong

emotion is developed which lies on the basis of preferences, remaining present even in the

absence of the friendly symbol or of any other component feature. Although a hardly

comprehensible concept, it has been demonstrated that the consumers’ preference can be

measured effectively, and that their study can provide a more thorough understanding on the

choices consumers make, when they decide to select a particular offerer as against the other,

or even when they decide to continue the relationship with the offerer in time. Additionally,

conducted studies have established various concepts related to the preference, such as the

concept of the formed preference which underlines the idea that the consumers’ preferences

are not better defined, but rather formed along the process of choosing, a constructive point

11
of view which suggests that different tasks and contexts highlight different aspects of the

options, the consumer concentrating on different considerations leading to inconsistent

decisions.

Knowledge of consumer preferences is especially important with respect to the

various activities carried out at the organizational level, necessary for its survival. For

instance, if an entrepreneur must determine what features must have the product he wants to

create, he will interview more potential buyers, asking them to mention the level of

preference for each separate feature.

The consumer preferences and behavior represent the basis of the pretesting models

for the new products (ASSESSOR, COMP, DEMON, NEWS, SPRINTER), which implies

determining the functional relationships between the buyer’s opinion concerning a product,

testing it and the purchase behavior. The level of preferences is one of the variables that

need to be taken into account when identifying the strong and weak points of the

competitors. By measuring the consumer preferences before and after carrying out an

advertising campaign, the transmitter may evaluate its success or failure.

The preferences towards certain products or brands may constitute the theme of a

survey supplying information concerning the relative non-consumers, since attracting these

represents an important means of increasing the sales volume up to the maximum limits of

market potential.

Fundamentals of studying the consumers’ preferences

The theory of rational choice comprises attitude components which, in the end,

represent the basis of forming a preference. This theory gives us a model contributing to a

better understanding of the way consumers’ preferences are formed and providing us, in an

appropriate way, with the necessary means of researching and foreseeing the evolution of

12
the consumers’ preferences. After analysing the way consumers’ preferences are formed

from the point of view of the theory of rational choice, depicted in figure, we can state that,

in order to understand the consumers’ preferences, it is necessary to determine their

demands and desires regarding the performance (functionality) involved in the purchase, the

expected emotional results, as well as the subjective standards consumers use to identify the

tendency for a product or a service as against the others.

Methods used in the study of the consumers’ preferences

Since the preference appears only in the context of a strong motivation, the research

of preferences covers a more limited but, at the same time, a much deeper area than the

study of motivations that subsumes the evaluation of the preference intensity, using also the

same instruments as in the case of the evaluation of reasons. The study of consumers’

preferences can resort to the observation method (as when analysing the purchasing

reasons), being the cheapest way of collecting behavioural information and, at the same

time, the most accurate one that assures an authentic motivational image. The selective

enquiry based on a written questionnaire is also used in studying consumer preferences even

though it determines solely the declared behavior of consumers and not the actual one, as in

the case of observation. Measuring consumer preferences for alternative product concepts

may be performed by using technique that is more and more widely known, namely the

conjugate analysis.

This is a method of finding out the value in use consumers attach to various features

of an object. The respondents are presented with several hypothetical offers obtained by

combining certain features, and they must rank these offers according to their preferences.

Testing consumer preferences is based on a variety of techniques such as: simple rank

ordering, paired comparisons, appraisal scales, each having specific advantages and

13
disadvantages. The method of unitary appraisal supplies much more information than the

method of simple ranking and that of paired comparisons. The subject is required to order on

a scale his/her preferences for each product. By using this method, we can find out not only

the order of preferences, but also the qualitative levels of preferences for each product and

the distance between the products. At the same time, this method is easy to use, especially

when we must evaluate several products.

Investigating preferences may be approached in different combinations with

investigations on other dimensions of consumer behavior. For this purpose, one can make

use of special investigation techniques, such as contextual methods or psychodrama. The

research on the consumers’ preferences has lead to a more thorough understanding of

several important problems arisen in the research on the consumer satisfaction, especially

one related to the fact that the consumer satisfaction in superior conditions at present does

not assure the manifestation of the consumer preference in the future.

The Need to Understand Customer

Preference Have you ever wondered why your company often loses relatively

satisfied customers? Why is it that customers will often indicate they are satisfied with how

they have been treated but then leave for a competitor at the first opportunity? Why is

customer defection often unrelated to price? The answers to these and other related

questions are found in coming to an understanding of customer preference. The idea that

customers prefer one product or one service over another is not new. The ability to identify

and measure the elements of such preference decisions with any accuracy and reliability has

only recently become available. Research into this area of consumer behavior has brought

understanding to some of the major issues with standard customer satisfaction research.

14
Most importantly, we have come to realize that high customer satisfaction does not assure

continued customer preference.

Satisfaction research over the past fifteen years demonstrates that high satisfaction

scores, while a measure of corporate performance on a set of important criteria, do not

adequately explain the composition of preference formation and therefore often serve as

insufficient predictors of sustained preference or what is normally referred to as customer

loyalty. Loyalty as a concept has also shown itself to be difficult to define. Like beauty,

loyalty is truly in the eye of the beholder. We understand there are different types and

degrees of loyalty and some of these are not appropriate in describing the relationship

between a consumer and a company. However, preference (defined as The power or ability

to choose one thing over another with the anticipation that the choice will result in greater

satisfaction, greater capability or improved performance) has demonstrated the ability to be

effectively measured and to provide meaningful insight into the choices consumers make

when selecting one provider over another and when determining to continue a relationship

over time.

15
 COMPANY PROFILE

In 1926, a government commission recommended the creation of a true central bank. While

some proposed converting the Imperial Bank into a central banking organization for the

country, the commission rejected this idea and instead recommended that the Imperial Bank

be transformed into a purely commercial banking institution. The government took up the

commission's recommendations, drafting a new bill in 1927. Passage of the new legislation

did not occur until 1935, however, with the creation of the Reserve Bank of India. That bank

took over all central banking functions.

16
Colonial Banking Origins in the 19th Century

The establishment of the British colonial government in India brought with it calls for the

formation of a Western-style banking system, if only to serve the needs and interests of the

British imperial government and of the European trading houses doing business there. The

creation of a national banking system began at the beginning of the 19th century.

The first component of what was later to become the State Bank of India was created in

1806, in Calcutta. Called the Bank of Calcutta, it was also the country's first joint stock

company.

Originally established to serve the city's interests, the bank was granted a charter to serve all

of Bengal in 1809, becoming the Bank of Bengal. The introduction of Western-style banking

instituted deposit savings accounts and, in some cases, investment services. The Bank of

Bengal also received the right to issue its own notes, which became legal currency within

the Bengali region. This right enabled the bank to establish a solid financial foundation,

building an interest-free capital base.

Funding National Development in the 20th Century

The rapid growth of the presidency banks came to an abrupt halt in 1876, when a new piece

of legislation, the Presidency Banks Act, placed all three banks under a common charter--

and a common set of restrictions. As part of the legislation, the British imperial government

gave up its ownership stakes in the banks, although they continued to provide a number of

services to the government, and retained some of the government's treasury capital. The

majority of that, however, was transferred to the three newly created Reserve Treasuries,

located in Calcutta, Bombay, and Madras. The Reserve Treasuries continued to lend capital

to the presidency banks, but on a more restrictive basis. The minimum balance now

guaranteed under the Presidency Banks Act was applicable only to the banks' central offices.

17
With branch offices no longer guaranteed a minimum balance backed by government funds,

the banks ended development of their networks. Only the Bank of Madras continued to grow

for some time, supplied as it was by the influx of capital from development of trade among

the region's port cities.

Competitor in the 21st Century

SBI was allowed to dominate the Indian banking sector for more than two decades. In the

early 1990s, the Indian government kicked off a series of reforms aimed at deregulating the

banking and financial industries. SBI was now forced to brace itself for the arrival of a new

wave of competitors eager to enter the fast-growing Indian economy's commercial banking

sector. Yet years as a government-run institution had left SBI bloated--the civil-servant

status of its employees had encouraged its payroll to swell to more than 230,000. The

bureaucratic nature of the bank's management left little room for personal initiative, nor

incentive for controlling costs.

State Bank of India (SBI) is an Indian multinational, public sector banking

and financial services company. It is a government-owned corporation with its headquarters

in Mumbai, Maharashtra. On April 1, 2017, the State Bank of India, which was India's

largest bank, merged with five of its associate banks (State Bank of Bikaner & Jaipur, State

Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of

Travancore), and with the Bharatiya Mahila Bank. This was the first ever large-scale

consolidation in the Indian banking industry. With the merger, SBI became one of the 50

largest banks in the world (balance sheet size of ₹33 trillion, 278,000 employees, 420

million customers, and more than 24,000 branches and 59,000 ATMs). SBI's market share

was projected to increase to 22 percent from 17 per cent. [5] It has 198 offices in 37 countries;

18
301 correspondents in 72 countries. The company is ranked 232nd on the Fortune Global

500 list of the world's biggest corporations as of 2016.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial

Bank of India, making it the oldest commercial bank in the Indian subcontinent. The Bank

of Madrasmerged into the other two "presidency banks" in British India, the Bank of

Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn became

the State Bank of India in 1955.The Government of India took control of the Imperial Bank

of India in 1955, with Reserve Bank of India (India's central bank) taking a 60% stake,

renaming it the State Bank of India. In 2008, the government took over the stake held by the

Reserve Bank of India.

The State Bank of India has 20% market share in deposits and loans among Indian

commercial banks.

History: -

The roots of the State Bank of India lie in the first decade of the 19th century, when

the Bank of Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The

Bank of Bengal was one of three Presidency banks, the other two being the Bank of

Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July

1843). All three Presidency banks were incorporated as joint stock companies and were the

result of royal charters. These three banks received the exclusive right to issue paper

currency till 1861 when, with the Paper Currency Act, the right was taken over by the

Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-

organised banking entity took as its name Imperial Bank of India. The Imperial Bank of

India remained a joint stock company but without Government participation.

19
 Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank

of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of

India. On 1 July 1955, the imperial Bank of India became the State Bank of India. In 2008,

the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove

any conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This

made SBI subsidiaries of eight that had belonged to princely states prior to their

nationalization and operational takeover between September 1959 and October 1960, which

made eight state banks associates of SBI. This une with the first Five Year Plan, which

prioritised the development of rural India. The government integrated these banks into the

State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank of

Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),

which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired

National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI

acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State,

under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan

Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was

Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120

branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an

extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to create a "mega

bank" and streamline the group's operations.

20
 The first step towards unification occurred on 13 August 2008 when State Bank of

Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.

On 19 June 2009, the SBI board approved the absorption of State Bank of Indore. SBI holds

98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the

government hold the balance of 1.7%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing

network of branches. Also, following the acquisition, SBI's total assets will approach ₹10

trillion. The total assets of SBI and the State Bank of Indore were ₹9,981,190 million as of

March 2009. The process of merging of State Bank of Indore was completed by April 2010,

and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to

merge into SBI the five remaining associated banks.

Operations: -

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 throughout India.

The origin of the State Bank of India goes back to the first decade of the nineteenth

century with the establishment of the Bank of Calcutta in 1806 in Calcutta. Three years later

the bank received its charter and was re–designed as the Bank of Bengal (2 January 1809). A

unique institution, it was the first joint–stock bank of British India sponsored by the

Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1

July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern

banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

21
Primarily Anglo–Indian creations, the three presidency banks came into existence either as a

result of the compulsions of imperial finance or by the felt needs of local European

commerce and were not imposed from outside in an arbitrary manner to modernise India's

economy. Their evolution was, however, shaped by ideas culled from similar developments

in Europe and England, and was influenced by changes occurring in the structure of both the

local trading environment and those in the relations of the Indian economy to the economy

of Europe and the global economic framework.

Awards

To know about the awards won by State Bank of India, click here.

Our bank is your bank

SBI commands a 22% share of the domestic Indian banking market. Our network boasts

over 25,000 branches in 37 countries globally.

The State Bank of India with a history of 200 years is the largest commercial bank in India.

The group is made up of banking and non- banking subsidiaries and joint ventures. As on

31st of March 2015, the group had assets worth USD 432.02 billion, deposits of USD

328.47 billion and capital & reserves in excess of USD 25.82 billion. The group commands

over 22% share of the domestic Indian banking market.

Our non-banking subsidiaries and joint ventures are market-leaders in key sectors, such as

life insurance, merchant banking, mutual funds, credit cards, factoring services, security

trading and primary dealership.

These diverse retail and wholesale services are delivered by dedicated, highly skilled

professional teams. And as you’d expect, we have relationships with thousands of local and

22
international banks through SWIFT – enabling us to securely exchange financial-transaction

data and manage trade-related banking business anywhere in the world.

Non-banking subsidiaries

Apart from its five associate banks (merged with SBI since April 1, 2017), SBI also has the

following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd

 SBI Factors & Commercial Services Pvt Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

 SBI DFHI Ltd

 SBI Life Insurance Company Limited

 SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of

the remaining capital), to form a joint venture life insurance company named SBI Life

Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was

founded with its headquarters in Mumbai.

Other SBI service points

As of 31 March 2017, SBI group (including associate banks) has 59,291 ATMs.

Since November 2017, SBI also offers an integrated digital banking platform named YONO.

23
 A credit card is a payment card issued to users (cardholders) as a method of payment.

It allows the cardholder to pay for goods and services based on the holder's promise to pay

for them. The issuer of the card (usually a bank) creates a revolving account and grants a

line of credit to the cardholder, from which the cardholder can borrow money for payment to

a merchant or as a cash advance.

A credit card is different from a charge card: a charge card requires the balance to be

repaid in full each month. In contrast, credit cards allow the consumers a continuing balance

of debt, subject to interest being charged. A credit card also differs from a cash card, which

can be used like currency by the owner of the card. A credit card differs from a charge card

also in that a credit card typically involves a third-party entity that pays the seller and is

reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a

later date.

The size of most credit cards is 3 3⁄8 in × 2 1⁄8 in (85.7 mm × 54.0 mm), conforming to

the ISO/IEC 7810 ID-1 standard. Credit cards have a printed or embossed bank card

number complying with the ISO/IEC 7812 numbering standard. Both of these standards are

maintained and further developed by ISO/IEC JTC 1/SC 17/WG 1. Before magnetic stripe

readers came into widespread use, plastic credit cards issued by many department stores

were produced on stock ("Princess" or "CR-50").

24
Credit Card

A credit card is a payment card issued to users to enable the cardholder to pay a merchant

for goods and services based on the cardholder's promise to the card issuer to pay them for

the amounts plus the other agreed charges. The card issuer creates a revolving account and

grants a line of credit to the cardholder, from which the cardholder can borrow money for

payment to a merchant or as a cash advance. A credit card is a type of bank card that lets

you borrow money – credit – before paying it back with interest. They work as a type of

loan, but instead of getting money in an account you get credit that you spend via the card,

before paying back what you owe each month.

SBI Credit Card

SBI Cards & Payments Services Ltd., previously known as SBI Cards and Payment Services

Private Limited, is a payment solutions provider in India. SBI Card was launched in October

1998 by the State Bank of India, India's largest bank, and GE Capital. In December 2017,

State Bank of India and The Carlyle Group. acquired GE Capital`s stake in the Company.

SBI Card is headquartered in Gurgaon, Haryana/Delhi NCR and have branches in over 100

cities across India. For the financial year ending March 31, 2016, SBI Card recorded a net

profit of ₹271 crore and a profit before tax of about ₹438 crore.

Types of Credit Card

There are a number of different types of credit cards designed for different people and

purposes, including cards that:

 Offer rewards depending on how you use them

 Help you build your credit report

25
 Let you transfer an existing balance onto a new card with lower or no interest

How to Credit Card work

If you’re successful in applying for a credit card, you’ll receive the card in the post.

Separately you will receive a personal identification number (PIN) to go with the card. Once

you have your card and PIN, you need to activate the card, often online, for it to be ready to

use.

You’ll be able to use your credit card to make purchases before paying back the balance, or

part of what you owe, each month. There is usually a minimum monthly payment you

should make to avoid any fees, but if you pay your balance back in full every month you can

avoid paying interest at all.

This means that if they’re used sensibly, credit cards can almost function like an interest free

loan. However, it you don’t make your payments on time you could face charges as well as

high interest rates. Using your credit card responsibly can provide big financial benefits.

Advantages of using a Credit Card

1. Spreading purchases out

2. Buying now to pay later

3. Having purchase protection

4. Getting benefits and rewards

5. Cutting down your debt

6. Boosting your credit rating

26
Disadvantages of using Credit Card

1. Your credit score

2. Fees & charges

3. Limited usage

4. The possibility of debt

USAGE

A credit card issuing company, such as a bank or credit union, enters into agreements

with merchants for them to accept their credit cards. Merchants often advertise which cards

they accept by displaying acceptance marks – generally derived from logos – or this may be

communicated in signage in the establishment or in company material (e.g., a restaurant's

menu may indicate which credit cards are accepted). Merchants may also communicate this

orally, as in "We take (brands X, Y, and Z)" or "We don't take credit cards".

Visa, Master Card, American Express

The credit card issuer issues a credit card to a customer at the time or after an

account has been approved by the credit provider, which need not be the same entity as the

card issuer. The cardholders can then use it to make purchases at merchants accepting that

card. When a purchase is made, the cardholder agrees to pay the card issuer. The cardholder

indicates consent to pay by signing a receipt with a record of the card details and indicating

the amount to be paid or by entering a personal identification number (PIN). Also, many

merchants now accept verbal authorizations via telephone and electronic authorization using

the Internet, known as a card not present transaction (CNP).

Electronic verification systems allow merchants to verify in a few seconds that the

card is valid and the cardholder has sufficient credit to cover the purchase, allowing the

27
verification to happen at time of purchase. The verification is performed using a credit card

payment terminal or point-of-sale (POS) system with a communications link to the

merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chipon

the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is

implemented as an EMV card.

TYPES OF THE CREDIT CARD: -

Credit card products come in a wide assortment these days. Some credit card

programs will ease their terms and conditions and offer perks for people with stellar credit,

such as travel insurance, concierge service and free entertainment. Other credit card program

may help a person re-establish their credit.

Standard Credit Cards

Standard credit cards are the general-purpose cards that have revolving credit lines.

They are marketed to people above the age of 18 who meet or exceed the financial

institution's minimum credit criteria. No deposits are needed and the credit limit is

established by the credit card issuer.

Reward Cards

Many credit cards have reward programs that can influence your spending. The perks

may come in the form of cash, points or discounts. Points that accumulate, for instance, can

be traded off for free hotel stays, merchandise, air travel car rentals and certificates.

However, these credit cards can come with complex rules, limits and restrictions. The key is

to try to make sure that annual fees don't end up eliminating all the benefits. Rewards cards

are typically best for people who pay their balances off every month.

28
Secured Credit Cards

Secured credit cards are known as pay-as-you-go cards. Upon opening the account,

the card holder deposits a few hundred to a couple of thousand dollars. This determines the

card holder's credit line. This limit is often based on a percent of the deposit, which is

usually 50-100% of what you put into the account. The cards have an annual fee and higher

annual interest rates. Most often, these cards are used to reestablish credit. A person can use

the card to make small purchases that they can easily repay. Getting a card with a conversion

option makes it easier to switch to a standard credit card, which should be possible after

several months of good payment history.

Specialty Credit Cards

Specialty cards typically are offered through affiliations, partnerships, major brand

retailers or service providers. Many specialty credit cards share a partnership between

organizations that support a social cause, professional organization or an alumni association.

A small portion of the purchase goes toward the intended organization.

29
 OBJECTIVES OF THE STUDY

 To study the development of banking industry in plastic cards usage trends.

 To analyze the factors for adoption of plastic money this replaces the paper or cash

money.

 To determine the penetration of plastic money in day-to-day life over the paper or

cash money.

 To study the future plans made by various banks and institutions for avoiding frauds

raised due to plastic cards in SBI Bank.

 To study the benefits of plastic money (ATM, debit and credit cards) in SBI Bank.

 To know the problems faced by respondents using plastic money in SBI Bank.

30
 HYPOTHESIS

Hypothesis is a proposed explanation for an observable phenomenon. The term

derives from the Greek, hyposthenia meaning "to put under" or "to “suppose”.

We have two assumed hypotheses for the study:

 To Study Perception of bank customer about credit card.

 Simplified form of money.

 SBI credit card provide the customer with variety of card to fulfil the individual

need.

 The SBI credit card online payment facility comes in handy to pay Utility bills.

 SBI credit card the other credit card compared to very unique because SBI provide

the unique opportunity to its cardholder to use the securing Shopping discount, travel

discount, balance transfer etc.

31
 RESEARCH METHODOLOGY

Meaning Of Research:

Research can be defined as the search for knowledge, or as any systematic

investigation, with an open mind, to establish novel facts, usually using a scientific method.

The primary purpose for applied research (as opposed to basic research) is

discovering, interpreting, and the development of methods and systems for the advancement

of human knowledge on a wide variety of scientific matters of world and the universe.

Definition

According to Advanced learner’s Dictionary

“Research is a careful investigation and enquiry specially through search for new

fact in any branch of knowledge.”

Types of Research

Scientific research relies on the application of the scientific method, a harnessing of

curiosity. This research provides scientific information and theories for the explanation of

the nature and the properties of the world around us. It makes practical applications possible.

Scientific research is funded by public authorities, by charitable organizations and by private

groups, including many companies. Scientific research can be subdivided into different

classifications according to their academic and application disciplines.

Artistic research, also seen as 'practice-based research', can take form when creative

works are considered both the research and the object of research itself. It is the debatable

body of thought which offers an alternative to purely scientific methods in research in its

search for knowledge and truth.

32
 Historical researchis embodied in the scientific method.

Research can also fall into two distinct types:

•Primary research (collection of data that does not yet exist)

•Secondary research (summary, collation and/or synthesis of existing research)

In social sciences and later in other disciplines, the following two research methods

can be applied, depending on the properties of the subject matter and on the objective of the

research:

•Qualitative research (understanding of human behavior and the reasons that govern

such behavior)

•Quantitative research (systematic empirical investigation of quantitative properties

and phenomena and their relationships)

For the perfect project one has to know each and every aspect of the concept

thoroughly. And then for Electronic Payment System one has to get update with the latest

innovations and all factors whichare continuously affecting these decisions. So acquiring

the data regarding this I gone through by several things like:

 Books;

 Magazines;

 Journals; and

 Web site.

In order to understand the Electronic Payment process, as per the objective stated, the

various steps which are to be followed are given below:

33
 a) Planning the research design.

b) Selecting the research method.

c) Selecting the sampling procedure.

d) Data collection.

e) Evaluating the data.

f) Preparing and presenting the research report.

RESEARCH DESIGN

Research design essential because it facilitates the smooth flow of various research

processes. In order to get the appropriate results on a clearly defined research topic, the

design chosen by the research is exploratory in nature.

Exploratory studies: This research is carried out to make the problem suited to more

precise investigation or to frame a working hypothesis from an operational perspective. It is

not used in case where definite result is desired as in research case where only impact is to

be studied.

Sample Size: -

Research is done by taking 100 sample size which is useful for getting the right kind of data

for the successful completion of project.

Sample technique: -

The convenience sampling technique is used for selecting the proper sample.

34
Data collection

Data collection is the most important activity or process in research. Data

collection plays a crucial role in finding the actual problem and solution to that problem.

Generally, there are two methods for finding the data.

PRIMARY DATA: -

Primary data can be obtained by communication or by observation communication

involves questioning responding either verbally or in writing. In the present study, data is

collected through structured questionnaire from respondents using mobile wallets.

SECONDARY DATA: -

Secondary data includes the information collected from the secondary sources. It includes

information collected from the journals, published reports, and sales reports e.t.c.

35
 DATA ANALYSIS & INTERPRETATION

1) WHICH MODE OF INTERNET BANKING DO YOU USE?

Responds No. of Respondents

ATM 10%

Debit Card 50%

Credit Card 35%

Mobile Banking 5%

60
55

50

40
35

30

20

10
10
5

0
ATM Debit Card Credit Card Mobile Banking

INTERPRETATION: -

When Customers of SBI Bank were asked about which mode of internet banking you

use then 10% of customers said that they use ATM, 55 of the customers use Debit card as mod

of internet banking, 35 % of them use credit card and only 5% of them use mobile for internet

banking. So this shows that ATM is more popular mode of transaction of internet banking

among the customers of SBI bank.

2) DEBIT OR CREDIT CARD USED FOR SAFE MODE OF TRANSACTIONS?

36
 Responds No. of Respondents

Yes 20%

No 80%

Safe mode of Transaction

20%

Yes
No

80%

INTERPRETATION: -

When the customers of SBI Bank were asked about is the internet banking is the safe

mode of transaction then, 20% of them feels it’s a safe mode of transaction but remaining 80%

feels that it is not a safe mode of transaction. There is always a chance of getting cheated. So

they don’t think it’s a save mode of transaction.

3) WHY DO YOU USE CREDIT CARD OR DEBIT CARD USE MOSTLY?

37
 Reasons No. of Respondents

Money Withdraw 30%

Shopping 15%

Transferring Fund 50%

Agency Service 5%

60

50
50

40

30
30

20
15

10
5

0
Money Withdraw Shopping Transferring Fund Agency Service

INTERPRETATION: -

When the customers of SBI bank were asked about why they use the internet banking

mostly then, 30% of the customers replied they use it for withdrawal of money through ATM.

15% of them said they use Credit or Debit for the shopping, 50% of them said they use Credit

or Debit Card of the transferring the fund from one bank account to another and remaining 5%

of the customers said they use Credit or Debit for agency services provided by bank. It shows

that the customers of SBI bank mostly use Internet banking for money withdrawn through

ATM.

4) DOES BANK PROVIDE GOOD SERVICE TO YOU?

38
 Responds No. of Respondents

Yes 60%

No 40%

Good Service Provider

40%

Yes
No

60%

INTERPRETATION: -

When the customers of SBI were asked about the service of the SBI bank then, 60% of

the customers said the service of SBI bank is good. The remaining 40% said that the service of

the bank is not good.

5) ARE YOU HAPPY WITH CREDIT CARD AND DEBIT CARD FACILITY?

39
 Responds No. of Respondents

Yes 40%

No 60%

Feeling of Happiness

40%

Yes
No

60%

INTERPRETATION: -

When the customers of SBI Banks were asked about the happiness of them by using

the services of the bank then, 80% of the customers said they are not happy with the SBI

Bank. Only 20% of the customers said that they are happy with the bank.

6) WILL YOU KEEP USING THE CREDIT CARD AND DEBIT CARD

FACILITY?

40
 Responds No. of Respondents

Yes 75%

No 25%

Will you continue using

25%

Yes
No

75%

INTERPRETATION: -

When the customers of SBI bank were asked about will they want to continue use the

service of same bank then, 25% of the customers agreed on the continue using. But 75% of the

customers were not agreed on continue using the service of the same bank.

7) Do you know use the SBI Card?

Respond Percentage (%)

41
 Yes 92

No 8

Yes
No

92

INTERPRETATION: -

Reveals that how many people know about online banking in today’s economy. 92%

respondent knows about what is SBI Card and 8% don’t know about online banking

even after the demonetarization.

8) What were your reasons for choosing SBI Card services?

42
 Respond Percentage %

Save time 28

Convenience 28

24 hours access to account 44

28

44 Save Time
Convenince
24 hours access to
account

28

INTERPRETATION: -

Implies the reasons why people choose SBI Card services. 44% people use SBI Card

services because it is 24 hours access to account. 28% use because it save times and

conveniences.

9) Which card features do you use regularly?

43
 Respond Percentage

Transfer funds 40

Pay bills 40

Balance inquires 8

Other 12

Total 100

12

40
Transfer funds
Pay Bills
Balance inquire
Other

40

Interpretation: -

Reveals that which online features are used mostly by the people. 40% people use

transfer of funds between accounts features and 40% used pay bill features. Only 8% used

balance inquire features.

10) How long has your bank been providing SBI card to customer?

44
 Respond Percentage %

Less than a year 18

1 to 5 years 28

More than 5 years 64

Total 100

18

Less than a year

1 to 5 Years
More than 5 Years
64 28

Interpretation

Implies how long has been the bank providing SBI Card and services to customer.

64% employees say more than 5 years and 8% says less than a year.

45
 RESULT AND DISCUSSION

To discuss the results and insights about SBI Credit Cards, we need to explore several key
areas such as market positioning, customer satisfaction, usage patterns, benefits, and
challenges. Here is a structured outline:

1. Market Positioning of SBI Credit Cards

 Market Share: SBI Credit Cards hold a significant share in the Indian credit card
market. Their market presence is bolstered by their extensive branch network and
strong brand recognition.

 Target Customers: SBI targets a broad customer base, including salaried individuals,
business professionals, and students with a range of credit cards tailored to different
needs.

2. Customer Satisfaction

 Overall Satisfaction: Generally, SBI credit cardholders report high levels of

satisfaction due to comprehensive rewards programs, discounts, and efficient customer
service.

 Customer Support: SBI provides robust customer support through multiple channels
including phone, online chat, and email.

3. Usage Patterns

 Spending Categories: Users frequently use SBI credit cards for online shopping,
travel bookings, dining, and utility bill payments.

 Payment Behavior: A significant portion of users pay their credit card bills in full
each month to avoid interest charges, while others take advantage of EMI options for
larger purchases.

4. Benefits and Features

 Rewards Program: SBI offers attractive reward points for various categories of
spending, which can be redeemed for gifts, vouchers, and air miles.

46
  Special Offers: Regular promotional offers, discounts on travel bookings, movie
tickets, and shopping are highly appreciated by users.

 Security Features: SBI credit cards come with advanced security features like EMV
chip, OTP verification for online transactions, and fraud liability cover.

5. Challenges

 Interest Rates: Some users find the interest rates on outstanding balances to be high
compared to other banks.

 Annual Fees: Certain premium cards have high annual fees, which can be a deterrent
for potential customers.

 Technical Issues: Occasionally, users report technical glitches with online

transactions or mobile app functionality.

6. Comparative Analysis

 Against Competitors: When compared with other leading banks like HDFC and
ICICI, SBI credit cards are competitive in terms of rewards and benefits but may lag
slightly in technological innovation and user experience.

DISCUSSION

From the results, it is clear that SBI credit cards enjoy a robust market presence and high
customer satisfaction due to their extensive benefits and reliable customer support. However,
they face competition from other major banks that offer innovative features and competitive
interest rates. To maintain and grow their market share, SBI needs to focus on continuous
improvement in digital services, customer engagement, and tailored offerings to meet the
evolving needs of consumers.

47
 CONCLUSIONS

Technology has played and shall continue to play in the payment card industry. For the last

thirty years, the card industry has been successfully using their technology to satisfy their

customer.

 The credit card plays a vital role in this modern world. Credit card are convenient to

use and provide and easy way to extend credit to customer

 It helps their customer in many ways and provide facilities to them.

 So more of the consumer prefer to get SBI bank credit card than other bank credit

card. They satisfy the customer regarding the following.

- Quick Process

- Gives more security

- Risk coverage

- Discount Facilities

- Less interest charges

- Provide advance facilities

 SBI bank are mostly satisfied their customer than another bank.

 Most of the consumer are rated satisfied on the function provided by the SBI bank.

 They mainly focus on the fulfilment of their customer satisfaction and reduce their

burden.

 Credit Card and Debit Card of SBI Bank is safer than Bank.

 The customers of SBI bank experienced cheating while using Card.

 The hidden charges of SBI bank are higher than the other bank.

48
 SBI bank provides goods services to its customers as compare to another bank.

 The Services of SBI banks are need to improve.

 The customers of SBI bank are happier than customers of Other Bank

 The customers of SBI bank want to continue use of services provide.

49
 FUTURE SCOPE

The future scope of SBI Credit Card (State Bank of India) can be explored through several
key areas, including market trends, technological advancements, regulatory changes, and
consumer behaviour. Here are some insights into the future scope of SBI Credit Card:

1. Digital Transformation and Fintech Integration

 Technological Advancements: The integration of advanced technologies like

artificial intelligence (AI), machine learning (ML), and blockchain will enhance
fraud detection, credit scoring, and personalized customer services.

 Mobile and Contactless Payments: Increasing adoption of mobile wallets and

contactless payment methods will drive the need for SBI Credit Card to offer
seamless and secure digital payment options.

2. Enhanced Customer Experience

 Personalized Services: Leveraging big data analytics to understand customer

behavior and preferences will allow SBI Credit Card to offer personalized rewards,
offers, and credit limits.

 Omnichannel Support: Providing consistent and integrated customer support across

various channels, including mobile apps, online portals, and in-branch services, will
enhance customer satisfaction.

3. Regulatory Changes and Compliance

 Adherence to Regulations: Staying compliant with evolving regulatory

requirements, such as data protection laws and consumer rights, will be crucial.

 Financial Inclusion Initiatives: SBI Credit Card can contribute to financial

inclusion by offering credit products tailored for underserved segments of the
population.

4. Market Expansion and Partnerships

 Strategic Partnerships: Collaborating with e-commerce platforms, retail chains,

and other financial institutions can expand the reach and utility of SBI Credit Card.

50
  Geographic Expansion: Exploring opportunities in international markets or focusing
on untapped domestic regions can drive growth.

5. Innovative Products and Services

 New Credit Products: Launching innovative credit products, such as co-branded

cards, lifestyle-focused cards, and eco-friendly cards, can attract diverse customer
segments.

 Loyalty Programs: Enhancing loyalty programs with more attractive rewards,

cashback offers, and exclusive privileges will retain and attract customers.

6. Risk Management

 Advanced Risk Assessment: Implementing sophisticated risk assessment tools to

better evaluate and manage credit risk will be essential.

 Fraud Prevention: Continuous improvement in fraud detection and prevention

mechanisms to safeguard customer transactions.

51
 SUGGESTION

 Banking should take necessary steps to create awareness among rural people about the

advantages and use of online banking services available in the banks.

 The online banking should make the online enquiry & online payment much easier to the

customers to Graph the illiterate population.

 Most of the customers have not availed of the e-banking services because they don’t trust

the internet channel. So bank may set up a team of personnel to train the customers

to get familiar with internet channel.

 Customers judge technology on function and emotion, in other words, how it makes

their lives easier, and how it feels when they use it. If the banks digital presence is

dated, it makes the customer feel satisfied and fail the effect of online function like delay,

insufficient information, etc.

 Always update the website & make the customers update about your new product and

services through banks website.

 Charge lesser amount for online transaction and also inform the customers about their

transaction and the charges cut on that online transaction through SMS or email.

52
 REFERENCES

BOOK REFERENCE

 Research Methodology - Bahndarkaer and Bill Kilson

 Research in education - Kulbir Singh

 Internet Banking: Early-Stage Experiences - Rhodel Island, Kington

 Electronic Banking for Retail Customers - Rotchanakitumnuai and Speece

 Aparna Iyer (2013) the new “Face book of Indian banking”, The Financial Express,

March p6.

 Indian Financial Market – Bharti V. Pathak

 Financial Management and Policy – 12th edition

 Financial Management -I M Pande

 Fundamentals of Financial Management

Website :

 www.sbi.co.in

 www.indianfin.com

 www.economywatch.com

53
 QUESTIONNAIRE
1) Which Mode of Internet Banking Do You Use?

 ATM

 Debit Card

 Credit Card

 Mobile Banking

2) Debit Or Credit Card Used for Safe Mode of Transactions?

 Yes

 No

3) Why Do You Use Credit Card or Debit Card Use Mostly?

 Money Withdraw

 Shopping

 Transferring Fund

 Agency Service

4) Does Bank Provide Good Service To You?

 Yes

 No

5) Are You Happy with Credit Card and Debit Card Facility?

 Yes

 No

6) Will You Keep Using the Credit Card And Debit Card Facility?

54
  Yes

 No

7) Do you know use the SBI Card ?

 Yes

 No

8) What were yours reasons for choosing SBI Card services?

 Save time

 Convenience

 24 hours access to account

9) Which card features do you use regularly?

 Transfer funds

 Pay bills

 Balance inquires

 Other

10) How long has your bank been providing SBI card to customer?

 Less than a year

 1 to 5 years

 More than 5 years

55