CERTIFICATE

I, Mr. Rakesh Kumar, Roll No. 17019103914 certify that the Project Report/Dissertation (MS202) entitled Factors affecting selection of plastic money by Indian customer is done by
me and it is an authentic work carried out by me at Gitarattan International Business School,
Rohini. The matter embodied in this Report has not been submitted earlier for the award of any
degree or diploma to the best of my knowledge and belief.

Signature
Date:
Certified that the Project Report/Dissertation (MS-202) entitled Factors affecting selection of
plastic money by Indian customer done by Mr Rakesh Kumar, Roll No. 17019103914, is
completed under my guidance.
Signature
Date:
Name of the Guide:Dr. Timcy Sachdeva
Designation:Assistant Professor

Countersigned

Director/Project Coordinator

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ACKNOWLEDGEMENT
In this highly complex society no work can be accomplished by a single individual but needs
inspiration and sincere guidance of intellectuals.It gives me immense pleasure to present the
report of my project titled Factors affecting selection of plastic money by Indian customer.
The work presented in the dissertation is the outcome of the guidance and inspiration of my
guide Dr.Timcy Sachdeva, Assistant Professor, Gitarattan International Business School,
Rohini. Her continuous encouragement during difficult times and expert advice has made this
research see light of the day.
I would specially like to thank Dr.Sonali Yadav, Project Coordinator, Gitarattan
International Business School, Rohini who provided her valuable inputs from inception of this
work to its culmination.
Finally, I thank all those who helped me directly and indirectly during the course of my summer
training.

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EXECUTIVE SUMMARY
Plastic money is very recent context which replacing the traditional concept of paying through
cash. Plastic money includes credit cards, debit cards, prepaid balance cards, smart cards etc.
Electronic service is becoming a feasible option for dealing between financial service providers
and their clients. Plastic money can be very useful as it provide convenience to its customers by
providing them cash round the clock or at any time at the ATMs. Plastic money is easy to carry
and it will reduce the tension of carrying the bundles of hard cash. Plastic money provides the
facilities of online payments which will reduce the burden of making payments at the counter but
by making it online. In this study, we are typically focusing only on debit and credit cards in
order to find out effectiveness of such in real life and factors affecting the consumer perception
towards plastic money in different age groups. The total numbers of respondents taken is 100
and examine the various factors influencing the selection of plastic money in different age
groups.
The objective of the study is to determine the factors influencing selection of plastic money that
replaces the paper or cash money and to study the relationship between factors influencing
plastic money and different age groups.
The scope of the study is that the research has been conducted in New Delhi and the research is
limited to that particular geographical area only. The study explores the risks which are related to
the operations and the future aspects of plastic money in India. It also reveals the experience of
the credit holders collected through a customer survey. The present study covers two different
types of cards i.e. Debit Card, Credit Cards.

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The methodology used for the present research includes both primary and secondary data have
been collected. For the present research the primary data has been collected through structured
questionnaire from the users of plastic money. On the other hand, sources for the secondary data
have been books, research papers.Data collected have been analysed by using factor analysis and
anova.
In this research tools which has been used are SPSS and MS Excel are used to analyse and
present the data collected from various primary source which include questionnaire
The findings of the Study reveals that the highest number of plastic card holders is in age group
of 20- 30 years, i.e. 62 percent respondents, while percent respondents using plastic card belongs
to the age group of 41- 50 years. Respondent taken for this study is those who are using plastic
money in their daily life.The highest usage of various card used by users is falling between
income group of Rs. 0- 250000 lakhs while the lowest usage is having Rs. 750000 income level
or more income level group as this group is using Plastic money as a means of transactions.The
highest number of plastic money users belongs to the profession of service, i.e. 37 percent
respondents, while 30 percent respondents belong to the profession of student.From the analysis
it is shown that males are using more plastic money i.e. 63 percent and females are using 37
percent plastic money.
The limitations of the research are related to the sample size asthe sample size is very small
compare to population of the study. Geographically the scope of this study is limited to New
Delhi only. Primary data has its own limitations which might affect the conclusion of this study.

CONTENTS

S No

Topic

Page No

Certificate (s)

ii

Acknowledgements

iii

Executive Summary

iv

List of Tables

vii

List of Figures

viii

List of Abbreviations

viii

Chapter-1: Introduction

1-15

Chapter-2: Literature Review

16-25

Chapter-3: Data Presentation & Analysis

26-40

10

Chapter-4: Summary & Conclusions

41-42

11

Chapter-5: Recommendations

43

12

References

44

13

Appendices

45

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LIST OF TABLES

Table no.

Title

Page no

Factor table

26

Gender of respondent

30

age group of respondent

27

Profession of respondents

28

Income of respondents

29

KMO and Bartlett's Test

34

Communalities

35

Total Variance Explained

37

Rotated component matrix

40

10

Identified factor table

43

11

Descriptives

44

12

homogeneity of variances

44

13

ANOVA

45

14

Questionnaire

52-54

vii

LIST OF FIGURES

Figure no.

Title

Page no.

Gender of respondent

30

age group of respondent

31

Profession of respondents

32

Income of respondents

33

LIST OF ABBREVIATIONS
S. no

abbreviations

Full form

ICICI

Industrial Credit and Investment Corporation of India

HDFC

Housing Development Finance Corporation

SBI

State bank of India

RBI

Reserve bank of India

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