A STUDY ON THE LEVEL OF CUSTOMER AWARENESS ON THE USAGE

OF DEBIT CARDS
 TABLE OF CONTENT

CHAPTER TITLE PAGE

NO NO
ABSTRACT
1 INTRODUCTION
1.1 INDUSTRY PROFILE
1.2 COMPANY PROFILE

1.3 PRODUCT PROFILE

1.4 NEED OF STUDY
1.5 LIMITATIONS OF
STUDY
1.6 SCOPE OF STUDY
1.7 OBJECTIVES OF
STUDY

II RESEARCH
METHODOLOGY
III DATA ANALYSIS
IV FINDINGS
V CONCLUSIONS
BIBLIOGRAPHY
 LIST OF TABLES

S.NO LIST OF TABLES P.NO

4.1 CLASSIFICATION BASED ON AGE OF

THE RESPONDENTS

4.2 CLASSIFICATION BASED ON

GENDER OF THE RESPONDENTS

4.3 CLASSIFICATION BASED ON

OCCUPATION OF THE
RESPONDENTS

4.4 CLASSIFICATION BASED ON

SATISFACTION LEVEL OF THE
RESPONDENTS

4.5 CLASSIFICATION BASED ON YEARS

OF EXECUTIVES OPTING OF THE
RESPONDENTS

4.6 CLASSIFICATION BASED ON

LEVEL OF SATISFACTION WITH
DOCUMENTATION WORK OF
THE RESPONDENTS
4.7 CLASSIFICATION BASED ON SAFETY
 AND SECURITY OF THE
RESPONDENTS

LIST OF CHARTS

S.NO LIST OF CHARTS P.NO

4.1 CLASSIFICATION BASED ON AGE OF

THE RESPONDENTS

4.2 CLASSIFICATION BASED ON

GENDER OF THE RESPONDENTS

4.3 CLASSIFICATION BASED ON

OCCUPATION OF THE
RESPONDENTS

4.4 CLASSIFICATION BASED ON

SATISFACTION LEVEL OF THE
RESPONDENTS

4.5 CLASSIFICATION BASED ON YEARS

OF EXECUTIVES OPTING OF THE
RESPONDENTS

4.6 CLASSIFICATION BASED ON

LEVEL OF SATISFACTION WITH
DOCUMENTATION WORK OF
THE RESPONDENTS
4.7 CLASSIFICATION BASED ON SAFETY
 AND SECURITY OF THE
RESPONDENTS

ABSTRACT

The project aim at “the study the Customer satisfaction

towards customer satisfaction level in usage of debit cards.

The study is carried out at INDIAN OVERSEAS BANK (vyasarpadi

branch) . This study focuses on Customers satisfaction. Analysis

of the study can be helpful for developing customer satisfaction by

IOB.

The study included various research methodologies, includes

descriptive research, simple random sampling of probability sampling

and the study was taken for a period of one month. Due to the

limitation of the study and consultation with the guide the sample size

is taken as 45 customers.
INTRODUCTION
Banks play an important role in the economic development of the
country. It is often said that banker is one who deals with other
people’s money. The term banking has been uinderstood differently by
different people at different times.

The main function of banks is to accept deposits from the public and
lend money to the public. The bank receives deposits from the public
and lend money to the public.

The bank receives deposits from the public by way of time deposits
and demand deposits. When deposits are received, the bank should
pay interest at the rate prescribed by the RBI. Similarly the bank lends
money to the public as loans. When money is lended, the bank would
receive interest at the rate prescribed by the RBI.

Since the past couple of decades, banking sector has evovled in

such a way that it has surpassed its basic nature and is almost a vital
centre for all financial affairs that takes place in an economy.

In the current scenario it is impossible to find a person without

being a bank customer. And banks have become a vital centre for
almost any financial affair that takes place in an economy. This has
created an overloaded work for the banks and the time incurred by the
customers for availing banking facilities has become vast. To avoid
these time wastages and for the ease of the customers, banks have
implemented many advancements. These advancement in facilities
has reduced the time incurred by customers for availing the features
of banks. One of such advancements is the introduction of debit cards
which is easy to avail and access and is being utilised by almost 90%
of the customers.

And this study deals with to what extent the customers are aware of
the facilities implemented by banks i.e. debit cards in specific

CUSTOMR AWARENESS:

Customers are informed and remaindered about the

products and are requested and persuaded to purchase their
products. Such communication may be made their along the
product or well in advance of the introduction of product into the
market. Such communication becomes necessary when a new
product or service is introduced in the market or an old product is
improved or it is simply to increase the sales of the products.
“Awareness compasses all the tools in the marketing
mix whose major role is persuasive communications.”
PHILLIP KOTLER
The main features of awareness are:
1. Customers are informed about the product or services of
the company. Either at the time of introduction of a new
product into the market or when any change is made in the
existing product.

2. Customers are reminded of the products and services of the

company.

3. Customers are requested or persuaded to purchase the

product and services of the company.

4. Awareness includes, advertising, personal selling and other

sale promotion techniques.
Consumers must have awareness about the new products
and their usage. Such activities are performed by the
manufacturer. It is the responsibility of the producer to get
information about the consumers and prospective consumers so
that the necessary product may be served to meet their
demands.
Subject matter companies must do more than make good
products they must inform consumers about the product benefits
and carefully position products in customers mind. To do this
must skillfully use the mass promotion tools like advertising,
sales promotion and public relations, personal selling, publicity.

INDUSTRIAL PROFILE:

A bank is a financial intermediary that accepts deposits and

channels those deposits into lending activities, either
directly or through capital markets. A bank connects
customers with capital deficits to customers with capital
surpluses.

Banking is generally a highly regulated industry, and

government restrictions on financial activities by banks have
varied over time and location. The current set of global bank
capital standards are called Basel II. In some countries such
as Germany, banks have historically owned major stakes in
industrial corporations while in other countries such as
the United States banks are prohibited from owning non-
financial companies. In Japan, banks are usually the nexus of
a cross-share holding entity known as thekeiretsu.

The oldest bank still in existence is Monte dei Paschi di

Siena, headquartered in Siena, Italy, which has been
operating continuously since 1472.

DEFINITION:

The definition of a bank varies from country to country. See

the relevant country page (below) for more information.

Under English common law, a banker is defined as a person

who carries on the business of banking, which is specified
as, conducting current accounts for his customers paying
cheques drawn on him, and collecting cheques for his
customers.

In most English common law jurisdictions there is a Bills of

Exchange Act that codifies the law in relation to negotiable
instruments, including cheques, and this Act contains a
statutory definition of the term banker : banker includes a
body of persons, whether incorporated or not, who carry on
the business of banking' (Section 2, Interpretation). Although
this definition seems circular, it is actually functional,
because it ensures that the legal basis for bank transactions
such as cheques does not depend on how the bank is
organized or regulated.

The business of banking is in many English common

law countries not defined by statute but by common law, the
definition above. In other English common law jurisdictions
there are statutory definitions of the business of banking or
banking business . When looking at these definitions it is
important to keep in mind that they are defining the business
of banking for the purposes of the legislation, and not
necessarily in general. In particular, most of the definitions
are from legislation that has the purposes of entry regulating
and supervising banks rather than regulating the actual
business of banking. However, in many cases the statutory
definition closely mirrors the common law one. Examples of
statutory definitions:

"banking business" means the business of receiving money

on current or deposit account, paying and collecting cheques
drawn by or paid in by customers, the making of advances to
customers, and includes such other business as the Authority
may prescribe for the purposes of this Act; (Banking Act
(Singapore), Section 2, Interpretation).

"banking business" means the business of either or both of

the following:

receiving from the general public money on current, deposit,

savings or other similar account repayable on demand or
within less than [3 months] ... or with a period of call or
notice of less than that period; paying or collecting cheques
drawn by or paid in by customers

Since the advent of EFTPOS (Electronic Funds Transfer at

Point Of Sale), direct credit, direct debit and internet
banking, the cheque has lost its primacy in most banking
systems as a payment instrument. This has led legal
theorists to suggest that the cheque based definition should
be broadened to include financial institutions that conduct
current accounts for customers and enable customers to pay
and be paid by third parties, even if they do not pay and
collect cheques.

STRANDARD ACTIVITIES:

Banks act as payment agents by conducting checking or

current accounts for customers, paying cheques drawn by
customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer
payments via other payment methods such as telegraphic
transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current

accounts, by accepting term deposits, and by issuing debt
securities such as banknotes and bonds. Banks lend money
by making advances to customers on current accounts, by
making installment loans, and by investing in marketable
debt securities and other forms of money lending.

Banks provide almost all payment services, and a bank

account is considered indispensable by most businesses,
individuals and governments. Non-banks that provide
payment services such as remittance companies are not
normally considered an adequate substitute for having a bank
account.

Banks borrow most funds from households and non-financial

businesses, and lend most funds to households and non-
financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank
loans, and money market funds, cash management trusts and
other non-bank financial institutions in many cases provide
an adequate substitute to banks for lending savings to.

PROFILE OF INDIAN OVERSEAS BANK:

INTRODUCTION

IOB is leading bank in Chennai, India.

Established in 1937, it had the distinction of simultaneously
commencing operation in three branches in karaikudi,
Chennai and yangon (myanmar). IOB aimed to encourage
overseas in banking and foreign exchange operations, it soon
opened its branches in penang and singapore. Today, INDIAN
OVERSEAS BANK boasts of a vast domain in banking sector
with over 1400 domestic branches and 6 branches overseas.

INDIAN OVERSEAS BANK was the first bank to venture into

consumer credit, as it introduced the popular personal loan
scheme. In 1964 , the bank started computerization in areas
of inter branch reconciliation and provident fund accounts.

INDIAN OVERSEAS BANK was one of the 14 major banks

which were nationalized in 1969. After nationalization, the
bank emphasized on opening its branches in rural parts of
India.

In 1979, INDIAN OVERSEAS BANK opened a foreign currency

banking unit in the free trade zone in Colombo.

In the year 2000, INDIAN OVERSEAS BANK undertook an

initial public offering that brought the government’s share in
the bank’s equity down to 75%. The equity shares of IOB are
listed in the Madras stock exchange(regional), Bombay stock
exchange, and national stock exchange of india ltd, Mumbai.
Since its exception, IOB has absorbed various banks
including the latest- bharat overseas bank in 2007.

The bank’s IT department has developed software, which is

used by its1200 branches to provide online banking to its
customers. INDIAN OVERSEAS BANK also has a network of
about 500 ATMs throughout india. Its international VISA debit
card is accepted at all ATMs belonging to the cash tree and
NFS networks. INDIAN OVERSEAS BANK is one of the banks
that the government of india has approved for online payment
of taxes.

INDIAN OVERSEAS BANK offers investment options like

mutual funds and shares. It provides a wide range of
consumer and commercial banking services , including
savings account, current account, depository services, VISA
cards, credit cards, debit cards, online banking, any branch
banking, home loans, NRI accounts, agricultural loans,
payment of bills or taxes, provident fund schemes, foreign
exchange collection services, retail loans etc.

HISTORY OF INDIAN OVERSEAS BANK

In 1973, INDIAN OVERSEAS BANK was founded on 10 th

February, and had the distinction of three branches, at
Chennai, karaikudi and Rangoon simultaneously commencing
business on the inaugural day. The founder chairman was
M.CT. CHIDAMBARAM CHETTIYAR.

During 1969 INDIAN OVERSEAS BANK was nationalized, the

bank had 208 branches and business mix of Rs.156 crores.

In 1990 the bank of Tamil Nadu was merged with the bank.
The bank has launched credit card in tie up arrangement with
pan card.

In 1995 the bank signed on july 26, a MOU with the three
Regional Rural Bank (RRBS) sponsored by it viz,

Puri gramya bank (in orissa)

Pandya grama bank( in tamil nadu)

Dhenkanal grama bank (in orissa).

Under the MOU, the RRBS committed themselves to achieve

targets under various business parameters for turning within
a span of five years.

In 1988 MS.P.Bolina, deputy secretary, ministry of finance

was appointed director of the bank with effect from
September 4, in the place of Shri psrsmjit singh. Shri
k.Nagappan was appointed director representing workmen
employees with the effect from October 12, in the place of
Shri bhadresh U. the bank launched its improved version of
kisan credit card on November 27. The scheme is gaining
popularity speedily. Branches distributed 2369 cards,
disbursing a credit of Rs.538.0 lakhs.

During 1999 the bank launched a housing scheme called

SUBHA GRUHA with simplified and borrower friendly features.
To benefit students undergoing studies in India & abroad, the
bank’s VIDHYA JYOTHI educational loan scheme was further
modified.

In 2000 INDIAN OVERSEAS BANK has launched its

customer care cell in Chennai. INDIAN OVERSEAS BANK has
tied up with Dabur-all state insurance to ,arket the joint
venture’s life insurance products.

It is the first public sector bank to introduce anywhere

banking at its 129 branches in the four metros, is extending
the connectivity in another 100 branches in Hyder4abad,
Banglore, Ahamedabad & Ludhiana. INDIAN OVERSEAS BANK
has launched its gold loan scheme for exporters taking
advantage of the uniform sales tax on bullion adopted by the
states recently. It is the first public sector bank in the
country to introduce mobile banking services using
WAP(wireless application protocol). The bank has launched
its ANY BANK BRANCHING SERVICE in Hyderabad.

In 2001 INDIAN OVERSEAS BANK is set to raise Rs.125 crore

through bond issue. Crisil has given a rating of AA for the
issue & P1+ for its certificate to deposit. INDIAN OVERSEAS
BANK chairman & managing director R V Shastri is expected
to take over from R J Kamath as the new head of the
nationalized canara bank. S C Gupta, executive director of
INDIAN OVERSEAS BANK will take over as the chairman &
managing director of the bank. Mr R Natarajan has been
appointed as executive director of INDIAN OVERSEAS BANK.
 During 2002, INDIAN OVERSEAS BANK has informed that the
government of India has nominated Smt. Usha Mathur, joint
secretary, department of expenditure, ministry of finance,
government of India, new delhi in place of Shri Ram
Mohan as government director in the board with effect from
march 20, 2002.

In 2003 INDIAN OVERSEAS BANK slapped notices to 70

defaulters & has seized a number of properties. INDIAN
OVERSEAS BANK decides not to return any share capital to
the government. INDIAN OVERSEAS BANK hands over
‘crendence mercury-fx’ inter branch messaging software
contract to credence analytics (I) pvt ltd.

B Swaminathan, general manager started a new Automated

Teller Machine(ATM) at the INDIAN OVERSEAS BANK in
pondichery. INDIAN OVERSEAS BANK non food credit has
surged up by Rs.650 crore. INDIAN OVERSEAS BANK along
with three other banks have tied up for ATM networks with
canara bank. Comes out with Initial Public Offering (IPO) of
10crore equity shares of Rs.10 each at a premium of Rs.24
aggregating Rs.240 crore, issue was 7 times oversubscribed,
high court restricts order on INDIAN OVERSEAS BANK staff
dismissal.

During 2004 the government has chosen INDIAN

OVERSEAS BANK for channelizing government credit to other
countries which runs into billions of dollars. INDIAN
OVERSEAS BANK ties up with Times Online Money to launch
an Internet-based remittance product, e-cash home, targeted
at Non Resident of India in the US wishing to transfer money
to India. INDIAN OVERSEAS BANK sets up new ATM in Vizag.
INDIAN OVERSEAS BANK pact with chola for MF products.
 In 2005 INDIAN OVERSEAS BANK joins hand with VISA to
offer debit cards.

During 2006 INDIAN OVERSEAS BANK inks with CRI pumps.

RECENT DEVELOPMENT OF IOB

31-JAN-09
The company has obtained RBI`s approval to go ahead with the
acquisition of Pune-based Shree Suvarna Sahakari Bank, as per media
reports.
08-DEC-08
The company has a public sector lender specializing in foreign
exchange business and overseas banking, announced that it has inked
a pact with Universal Sompo General Insurance Company, a joint
venture of IOB with Allahabad Bank, Karnataka Bank, Dabur
Investments and Sompo Japan Insurance, for distributing non life
insurance products.
FUTURE PLAN OF IOB

INDIAN OVERSEAS BANK will invest Rs 500 million in IOB

Financial Services which would provide services such as stock
broking, depository participant, wealth management, distribution of
third-party financial products and, at a later stage, investment
banking.

FUNCTIONS OF INDIAN OVERSEAS BANK

• INDIAN OVERSEAS BANK provides various modes of deposit

scheme & loans under personal schemes which include savins
account, current account, term deposit, retail loans &
mortgages, depository services, international VISA cards, any
branch banking, insurance & mutual funds.
• INDIAN OVERSEAS BANK also extends its services to NRI
customers with NRI account like non residency ordinary,
accounts resident, foreign currency non resident accounts, NRI
home loan schemes, NRI remittance & the main with INDIAN
OVERSEAS BANK expo gold card.
• Corporate banking

•
PRODUCT PROFILE:
A debit card (also known as a bank card or check card) is a
plastic card that provides an alternative payment method
to cash when making purchases. Functionally, it can be
called an electronic cheque, as the funds are withdrawn
directly from either the bank account, or from the remaining
balance on the card. In some cases, the cards are designed
exclusively for use on the Internet, and so there is no
physical card.

In many countries the use of debit cards has become so

widespread that their volume of use has overtaken the
cheque and, in some instances, cash transactions.
Like credit cards, debit cards are used widely for telephone
and Internet purchases and, unlike credit cards, the funds