An Assignment Submitted to:

University Of Mumbai For Partial Completion For The Degree Of

Bachelors In Management Studies
Under the Faculty of Commerce

Submitted by:

Ms. Divya Bane

For the subject:

Project Work

Guided by:

Professor Mr. Samiullah Jahan Shaikh

Assignment title:

" CHALLENGES FACED BY MICRO ENTREPRENEURS IN ACCEPTING

PLASTIC MONEY"

Submitted to:

Sasmira’s Institute of Commerce &

Science (Sics) Sasmira Rd, Worli,
Maharashtra, Mumbai 400030.

Year 2023

1
 A RESEARCH PROJECT BY

UNDERGRADUATE

STUDENT

FOR THE DEGREE OF BACHELOR IN MANAGEMENT

STUDIES OF

UNIVERSITY OF MUMBAI

ON

" CHALLENGES FACED BY MICRO ENTREPRENEURS IN

ACCEPTING PLASTIC MONEY"

SUBMITTED BY

Ms. Divya Bane

"GUIDED BY RESPECTED PROF. Samiullah Jahan

Shaikh CENTER

SASMIRA’S INSTITUTE OF COMMERCE & SCIENCE (SICS)

2
 DECLARATION

I Divya Balkrishna Bane the student of Final year BMS (Year 2022-23) hereby declare that I have

completed my project on CHALLENGES FACED BY MICRO ENTREPRENEURS IN

ACCEPTING

PLASTIC MONEY The information submitted is true and original to the best of my knowledge.

(Signature of the student)

Name of the Student: Divya Balkrishna Bane

Roll Number: A20202353

College Name: Sasmira’s Institute Of Commerce & Science (Sics)

College Address: Sasmira Rd, Worli, Mumbai, Maharashtra 400030.

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 and science
Affiliated to University of Mumbai

CERTIFICATE

This is to certify that Ms. Divya Balkrishna Bane

has worked and duly completed her Project Work for the degree of Bachelor of Management Studies
under the Faculty of Commerce in the subject Of Challenges Faced By Micro Entrepreneurs In
Accepting Plastic Money and her/his project is entitled, PROF. Samiullah Jahan Shaikh under my
supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigations

Course Co-ordinator/HOD Principal

Project Guide/Internal Examiner External Examiner

Dare of submission:

4
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is enormous.

I would like to acknowledge & express my gratitude to the following respected mentors for providing

idealistic channels and fresh dimensions in the completion of this project.

I would like to thank my Principal, Dr. Ritu Bhattacharyya for providing the necessary facilities for the

completion of this project. I take this opportunity to thank our Co-ordinator for his moral support and

guidance from time to time.

I would like to express my sincere gratitude towards my project guide Prof. Samiullah Jahan Shaikh

whose guidance and care made the project successful.

I would also like to thank my college library for having provided me with various reference books and

magazines related to my project.

Lastly, I would like to thank every person who directly or indirectly was involved in making this project

and helped me in the completion of the project especially my Parents and peers, who supported me

throughout the journey of this project.

5
 INDEX

CHAPTER NO TITLE OF THE CHAPTER PAGE

NO
CHAPTER 1 INTRODUCTION 7 - 48
1.1 Introduction to plastic money 8
1.2 History and evolution of plastic money 10
1.3 Plastic money emerging trends and strategic challenges 17
1.4 Growth of plastic money services in India 19
1.5 Types of plastic cards 25
1.6 Effect on the usage of plastic money after demonetization 35
1.7 Plastic money frauds 37
1.8 Plastic card fraud prevention strategies 38
1.9 Introduction to entrepreneurs 42

CHAPTER 2 RESEARCH METHODLOGY 49 - 52

2.1 Objective of the study 50
2.2 Scope of the study 50
2.3 Research design 50
2.4 Limitations to the study 52

CHAPTER 3 REVIEW OF LITERATURE 53 – 64

CHAPTER 4 DATA ANALYSIS, INTERPRETATION, PRESENTATION 65 - 79

CHAPTER 5 FINDINGS, SUGGESTIONS AND CONCLUSION 80 - 81

APPENDIX 82 - 84

BIBILOGRAPHY 85

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CHAPTER 1
INTRODUCTION

India is a giant economic mediocrity and to resuscitate the country's underperforming economy,
prime minister took the boldest decision in the financial history of independent India, by overnight
demonetizing the high esteem money notes of Rs. 500 and Rs.1000. The announcement was met with
varied emotions and reactions shock, surprise, anger, panic and hope and relief for some of who believe
that this would arrest the growth of a parallel economy. While the opposition says that demonetization has
unleashed economic anarchy, subjected common people to hardship and trade and business, the Modi
government insists on it as a bold move to counter black money, terrorism, and fake currency.

The prime minister's surgical strike on black money is a bold historic move to weed out the evils
in the country's parallel economy. For a money based Indian economy, the demonetization of the Rs 500
and Rs 1000 cash notes could start another computerized economy wherein business players like Paytm,
Master Card get an opportunity to extend their client base. For e instalment wallets and sorted out
segments it is an opportunity to celebrate yet for the chaotic part this move could check the finish of their
rule.

At the world glance, suitable changes as per the recent technology and dynamics should be adopted
by every economy. Recently the country is moving into a new era of monetary transactions and the mode
of payment is on the cusp of a new revolution. There is little doubt occurred in the mind of the Indians
that with rapid growth of the economy, what they will demand and get modern financial services are far
superior than the services their parents' generation enjoyed. Nowadays life becomes easier because of the
electronic transactions which also lead to a development in society. This also gives birth to cashless
society.

A cashless society implies that monetary structure where money related exchanges occur through
the exchange of advanced data as opposed to in type of banknotes or coins between the executing parties.
Cashless social orders have existed dependent on deal and different strategies for trade and cashless
exchange have additionally turned out to be conceivable utilizing computerized monetary forms.

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1.1 INTRODUCTION OF PLASTIC MONEY

Man, always has searched for things which made his life more comfortable on this earth. The
history of invention of money presents an interesting study of ingenuity of the mind of primitive man to
enable him consume what he did not produce. The main propelling forces behind the invention of money
were the inconvenience of barter. Barter system was compatible only with simple or primitive economy
where man were content with too few and simple requirements of life. The mind of man began to think of
some device which by eliminating the difficulties of Harter, would make for the social and economic
progress of community. The search for such a device resulted in the invention of money.
The present inconvertible paper currency and other credit instruments acting as substitutes for legal
money is only a recent development. Earlier gold and silver on account of their attractiveness were
universally desired and regarded as national money. As years rolled by, people became used to the written
documents. These paper documents possessed certain natural advantages over actual metallic money
which they represented. These were easy to carry without the risk of being stolen away. The bank note
represents the third stage in the development of paper money. Currently highly circulated paper currency
meets some of the requirements but again it faces a lot of difficulties such as can be easily stolen, cannot
be used in heavy amounts, travelling become difficult with lot of cash and many such difficulties are
being met by using the currency. Presently exchange of it has moved from being a physical paper-based
exchange of significant worth to a virtual electronic one. This occurs with cutting edge techno outline
based frameworks in banking areas which prompts extraordinary adjustment regarding how money related
accomplice give administrations to clients buys like distinguishing proof alongside track of exchanges as
they have been finished with every one of the buys, for example, store name and spot, date of
procurement, cost of the item and so forth. These holders have the office to revaluation his cash about the
buys which is precluded for the situation from securing money client.

E- Instalment technique is turning into a possible alternative for dealings between money related
administration accomplice and their customers. This digitalization has broad essentialness quite for India.
Prior, it assists with the worldwide money related accomplice by making the frameworks increasingly
focused and financially savvy. It likewise bolsters in attempted the interesting difficulties looked by
Indian economy and requirement for money related clearness.

Plastic cash has made another purchaser culture. It makes both utilization and speculation culture in
the meantime. Plastic cash helps in making another social, money related and business culture. The
development of plastic cash goes back to the 1920s, when the main instalment card was presented in the

8
USA, Coffee shops Club and American Express propelled the world's first plastic card in the USA, in
1950. The principal charge card was presented by Diners Club in 1951. This denoted the start of the time
of plastic
cash. Coffee shop's card was propelled in Indian market in 1960. The national bank of India was the
primary bank in the nation to acquaint with present Visa framework in august 1980, trailed by a few
different banks. In India, both remote and Indian banks are doing charge card business.

The outside banks have a staggering idea in perspective on different reasons like having been in the
field for a noteworthy time designation, sound operational and money related quality. solid brand
assertion, and so on later with the serious zone of SBL ICICI and HDFC banks issuing charge cards, the
regarded and particularly passed on cards are Citibank Diner's Club Card, Citibank Visa Card and Visas,
Bank of Baroda MasterCard's, the SBI Mastercard, Canara Banks can card, and so forth. These cards are
organized in such a way which gives a tendency that the cards can be gained by individuals from the high
society similarly as the centre pay classes. The new private domain banks like ICICI and HDFC have
gotten an arrangement of achieving let down the remuneration strata by dropping down their capacity
benchmarks. Today plastic card industry is commanding and in every way that really matters most of the
banks are progressing Mastercard’s in relationship with Visa International or Master Card.

There is right now flood of Indian banks offering plastic cards to the potential customers. Overall
banks working in India have in like manner joined the short-lived pattern with high voltage advancing and
evidently forceful reward programs for reliable card customers. Indian plastic cash promote is growing 60
to 70 percent consistently and the amount of plastic cards accessible for use is post seven a half million as
point by point by means of card underwriters.

Plastic cards are one of those sorts of improvements through which the customers can make use of
banking organizations just by owning the card issued by bank and that too without constraining himself in
the authority money related hours. Plastic cards are the piece of e banking has been being utilized in the
country for quite a while. Portion by means of card is directly transforming into an especially needed
mode for making retail portions in the country. As such, plastic cards are such portion gadget which gives
a customer a possibility of non-cash portion of items and adventures and are expected to energize little
regard retail portions by offering a substitute for banknote and coins and thusly to compliment standard
portion instruments.
Plastic money yields a great deal a greater number of points of interest than just promising the swap
of cash and checks for client trades. It has far reached impact on the economy when all is said in done
through low trade bunk, extended operational capacity, improved budgetary framework and an open

9
entryway for the quickly propelling Indian economy to furthermore globalize

10
1.2 History and Evolution Of Plastic Money

● 1900-1950's

a) The Beginning
Starting with the history of "plastic money", charge cards cannot be ignored. These charge cards
were the ones which laid the groundwork for debit and credit cards. Company-issued charge cards were
formulated as far back as the early 1900's. These were the cards which kept customers loyal to the
company.

b) Charg-it
"Charg-it" was the first actual bank card which was issued in the year 1946. These cards were
invented by a banker in Brooklyn, whose name was John Biggins. However, with these cards only local
purchases could be made.

c)The Diners Club Card

The concept of the credit cards was initially acted by the person named Frank McNamara After
finishing his dinner with a fellow business associate, Frank found himself short on cash Ashe forgot his
wallet. This was an epiphany that led him to think on the idea of a charge card. This card was later known
as the "Diners Club Card" and could be used at various locations. This novel idea was the first true model
of multipurpose charge card.

d)American Express
American Express is the company which issued their first credit card in 1958. As they were present
internationally, the Green Charge Cards were globally accepted. This became the first credit card which
was internationally available.

e) BankAmericard
In the year 1958 Bank of America introduced a unique card that can be used to purchase anything
with merchants. In other words, it was a universal card so that the cardholder will not need multiple cards
for specific destinations. These cards also set industry standards such as grace periods, credit limits, and
floor limits. The pilot program in 1959 initially had 60,000 customers and it was a huge success. The
program was then rolled out in state wide in California.

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● 1960s
a) The Mag Stripe
Credit and debit cards would not be what they are today without having the Mag Stripe. This
momentous leap in the banking card technology arrived when the CIA hired the company IBM to attach a
magnetic stripe to all their identity cards. This technology was already available; however, the main
problem was that permanently attaching the magnetic stripe to the card without any wrinkles. While
working towards this problem, Forest Perry who returned home from work to find his wife ironing his
clothes. When he mentioned the problem about attaching the magnetic stripe. Forest's wife asked to see
the prototype card. Using the iron, she melted the stripe to the card to make it wrinkle-free. This solved
the complete problem, which allowed IBM to go into full production with the Mag Stripe on all their
cards.

b) Automated Teller Machine (ATM)

One of the most easy and convenient aspects of plastic money is the all-serving Automated Teller
Machine (ATM). The ATM was brought live in the year 1960's by a person named John Shepperd-
Barron. After an unfortunate and unsuccessful trip to the banks, John waited until the next day when it
opened again. On that day night, while reportedly taking a bath. John thought of a self-dispensing
automated cash machine. Along with the invention of what was soon to be the ATM, he had also invented
the 4-digit international pin code. John first wanted a six-digit army serial; but his wife spoke and
convinced him four digits would be easier to remember and access.

c)The Chicago Debacle

In the 1960s, unsolicited credit cards caused a big problem for the Chicago market. The Chicago
market was caught up by credit card companies by the mid-60s, so several companies began to mail
"preapproved cards". This mailing tactics was proved to be nearly fatal for those credit card companies, as
they were mailing them by mistake to convicted felons, toddlers and even dogs. Organized crimes also
took advantage by using the corrupt workers to intercept these cards. Since these intercepted cards were
already pre-approved, the people residing at that address were billed thousands of dollars without even
knowing about the missing stolen cards.

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● 1970s - 1990s

a) VISA
Originally the Visa card initiated as the BankAmericard program and was never planned to go
national, or international for that matter. In 1965 BankAmerica started a licensing program with most of
the banks around California. After sufficient banks subscribed to the program, BankAmerica was able to
invent a joint venture bank association. This rolled out on an international scale and BankAmerica
changed the name of its card to VISA International. They also created a local America version named
VISA U.S.A. This twocard system allowed VISA International to be easily accepted across other
countries as well due to having no association with America. The acronym VISA stands for Visa
International Service Association; BankAmerica felt the name change was suitable since VISA would be
instantly recognized in various languages. Their success continued and, they joined the Plus ATM
network by which becoming even more accessible to all the customers around the world. These strategic
branding choices allowed VISA to be one of the most recognizable and effective consumer brands today
across the world.

b) Mastercard
While the BankAmericard gained precedent around California, in Kentucky their competition with
others also gaining strong ground. Crocker National Bank. Wells Fargo, and Bank of California united
together and launched an association Interbank Card Association (ICA) in 1966. After three years, Master
charge modified their logo and came out with the iconic red and orange overlapping circle with each
other. However, it was not until ten years later when Master charge was converted to the Mastercard we
know today. The mid and later 80s were also a revolutionary decade for these MasterCard. They released
a program called emergency card replacement program; they entered the Pacific Rim, and caught Cirrus
which was the biggest ATM network in the world. After such a successful decade, MasterCard
improvised on their advancements and became the other important player in the market along with VISA.

● 1990s - Today

To convert to an ever-evolving technological world, credit and debit cards had become the most efficient
and instantly accessible cards across multiple mediums. With the new technologies such as mobile
platforms and computers, this presents numerous opportunities and openings for vendors and consumers
alike.

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a) Chip and Pin
One of the more disruptive changes to plastic money was the adoption of chip and pin technology
in the cards. This system became a standard with credit and debit cards, and was preferred to the magnetic
stripe. Chip and Pin technology makes cards much more secure and personal information fraud can be
minimized because of the encrypted chip. A cloned chip can also be immediately recognizable as a
fraudulent card, as every chip is uniquely encrypted for each individual card. Even though this technology
on the cards has been around since the 1990's, it has become widely used across Canada, and became
mandatory in the United States.

b) Yes Card
The Yes Card is a new way of accessing loans via online platforms and getting money

immediately. The Yes Card allows you to access and use your loans anywhere any time anyplace and
faster than other means.

1.2.1 Plastic Money System

The evolution of plastic money industry was quite obvious people are getting more dependent on
technology and plastic money business is just the best outcome of technology in banking business. The
banking system of India should not only be hassle free but it should be able to meet new challenges posed
by the technology and any other external and internal factors However, mere technology up gradation or
introduction of innovative products cannot improve the situation until customers do not respond to it
positively. Hence, it becomes very necessary for the banks to offer the services or products while taking
into consideration the customer’s needs, preferences, perceptions and convenience.

1.2.2 Usability of Plastic Money:

a) Credit cards usage for travel bookings:

Consumers started to make their bookings using cards and it has become a lifestyle choice for most
urban consumers.

14
b) electronic transactions grew strongly with the help of RBI:
The consumers who were using online shopping for a long period switched to net banking
facilities over cash on delivery as this was more convenient and faster. This included online shopping for
groceries, especially in metropolitan cities.

c) Mobile banking applications become common for all banks:

Use of smart phones became one of the most common forms of banking. As to provide
consumers with a convenient and secure banking facility, almost every leading bank in the country,
private or public, launched their mobile applications for all the leading Smartphone operating system
platforms i.e., Android, IOS and Windows.

d) Security:
Lost cash can be used by anyone. If credit or debit card, is lost then informing on helpline
number and report to allocation within the bank and thus get protected from unauthorized use of
electronic payment your card. However, different banks may have different government funds. I liability
policies, consult your bank I they offer any liability waiver.

e) Universal Acceptance:
Most credit and debit cards are accepted worldwide. Try that with a personal check! If you
need cash, you can make withdrawals from ATMs or banks can sell other around the world that accept
your credit or debit card.

f) Emergency Protection:
A credit card will get you through almost any emergency you can think of. It's like a security
blanket that will cover you for e.g. airline insurance, life insurance etc. depending upon the credit card.

g) Convenience:
Credit and debit cards offer no-hassle shopping no cash, no checks, no additional identification.

h) Simplified Record Keeping:

Credit and debit cards give you a record of all your transactions for the month, so keeping track
of where your money goes is easier.

15
 I) Hygienic:
Paper Money is dirty and unhygienic as it travels from one person to another whereas on the
other hand plastic money usually remains with 2.3 individuals maximum therefore it is clean and
hygienic.

j) Environment Friendly:
One of the major causes of deforestation is paper and this is where plastic money is better than
paper money as it reduces deforestation.

k) Value Added Benefits:

Many credit cards offer rebates, cash refunds, contributions to your favourite charity, or other
special value-added benefits that you won't get with paying by cash.

1.2.3 The Role of Various Parties Involved in Plastic Cards Payments

● Customers or cardholders:

the approved individual holding the plastic money and can utilize it for buy of merchandise and
enterprises too.

● Card issuing bank:

the financial institution or establishment which issues the plastic cards to its qualified clients.

● Merchants:

substances which pitch the merchandise and enterprises to the cardholders and appropriately consent
to acknowledge the card for instalment.

● Bank card affiliation:

the affiliations (VISA. Master Card. American Express).

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1.2.4 The Motives Behind the Use of Plastic Money Vary from People to People and
from Organization to Organization

● For Government: -

Economy Driving Spends: Government can utilize electronic payments as a channel to modernizing
and boosting effectiveness in their respective economies.

● For Banks: -

Profitable Usage: It is a means of additional fee income; banks can use plastic cards as a tool for
increasing their market penetration and premium turnover.

● For Consumers Growing Reach:

We can comprehend that expanding pattern to utilize Mastercard’s in India is more need
driven instead of simply being a style explanation. India is on a ceaseless move towards new progression
individuals have turned out to be progressively portable and it is getting to be more dangerous to convey
money regularly then again expansion has added to cost, so to conquer any hindrance between the buys
and failure to convey money the cutting-edge Indian age is picking to utilization of plastic cards.

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1.3 Plastic Money: Emerging Trends and Strategic Challenges

Plastic cash is on the ascent especially in developing markets. Plastic cash is a simple and
experimental method of instalment in various markets with most elevated entrance rate in Europe. In Asia
plastic cash is picking up ubiquity especially in India and China where confinements have been
facilitated. Social. social, just as administrative thought and item unpredictability assume a critical job in
deciding how effective plastic cash would be in a specific market. The standpoint for plastic cash stays
positive while advancement in individual market will keep on depending intensely on every nation's
administrative and business conditions.

● Emerging Trends: -

Even though plastic cash was customarily focused to the mass market wholesalers, presently have
started to finely portion the market which has brought about customized items for each section. A few
backers of plastic cash have started to concentrate only on circulation. In certain business sectors money
exchange are gradually on the abatement which will in general support plastic cash improvements.

By the by banks are beginning to grasp direct showcasing and web banking instruments to appropriate
plastic cash. New and developing channels are ending up progressively focused because of substantial
money saving advantages implanted in estimating or through the intrigue of comfort and advancement.
Presently multi day's plastic cash has made strides in numerous nations with committed spotlight on
specialty customer fragments and the dispersion of biometric cards, worldwide use cards, elective use
cards, petro cards and so on by the by merchants have demonstrated an eagerness to grow their item range
to incorporate items past those identified with money exchange alone.

● Strategic Challenges: -

These developments are expected to challenge ancient paper currency group action and overall
economic atmosphere within the following ways that:

a) The shift from producing to pure distribution needs banks to higher align
the incentives of various suppliers with their own.

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 b) Increasing sale of plastic cards needs banks to possess refined machinery
and correct risk management technology.

c)Banks can have to be compelled to be ready for doable disruptions to shopper relations arising
from the use of those cards.

d)The strategic challenge additionally lies with modification in rules and regulation by the
authorities.

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1.4 Growth of Plastic Money Services in India

The plastic money in the form of cards was introduced by banks in India in 1990's. But it was not
very popular among Indian consumer at the time of its introduction. The change in demographic features
of consumers in terms of their income, marital status, education level etc. and upgradation of technology
and its awareness has brought the relevant changes in consumers' preferences. These changing
preferences have also modified their outlook and decision regarding the acceptance and non-acceptance of
products and services in the market.

Today the plastic cards are gaining popularity among bankers as well as customers. These cards
are getting accepted in the market place. The plastic cards market is growing at a fast pace in India. It has
become important that the payment system in India must be modernized enough to be at par with the
systems prevalent in other countries, since our domestic financial markets are increasingly getting
integrated with markets abroad. RBI is also taking important steps in order to enhance its usage and
popularity through initiatives like regulating card market to maintain the security levels and to build up
confidence of bankers and customers.

In nutshell, we can say that the Indian banking sector is accepting the challenge of information
technology as the bankers have with recognized plastic cards and security aspects pertaining to card usage
as essential requirement for their survival and growth in future.

Today the Indian card market is at par with the best in the world. Following are some indicators:

a) Profitable utilisation:

Credit cards can be used online with a separate security number to protect any misuse. This
has resulted in increased profitability.

b) Increasing Reach:

Credit and debit cards are now increasingly being used for various other purposes also like
paying hospital bills, school bills etc.

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 c) Utmost safety:

Safety standards followed by the Indian financial institutions to prevent misuse match the
best in the world.

d) Feature-oriented:

Most of the cards come with standard features such as free accident insurance, medical
insurance at a heavy discount and much more. The cardholder has the option of converting a big purchase
made on credit card into a loan at a lower rate of interest spread cover a long period.

1.4.1Pros And Cons of Plastic Money

● Advantages Of Plastic Money

Plastic money aka polymer money is made out of plastic and has formed an important part of our daily
life these days. It is easier to deal with cards than cash. Yes, the advantages of plastic money over cash
have made it a best friend of many. It was in the 1950s the concept of plastic money came into being.
When we say plastic money, it includes debit cards, ATM cards, credit cards, prepaid cards, smart cards
and so on. The main advantage of plastic money is that it avoids the necessity to carry huge cash and is
also difficult to mutilate. The disadvantage being there are still many among us who do not know how to
use a plastic card wisely.

a) Cards fit into the wallet easily:

It is essential that we need to have some sort of money in hand always as we never know when a
need arises. But carrying a lot of cash in hand is not at all a wise idea. Also, who would want to carry a lot
of cash in hand and make their wallet bulge out. In such situations, plastic money comes for help. Your
wallet will remain perfect and your cash needs will also be sorted out. If required you can take cash using
plastic cards. Also, it is safe when you have a card with you as even if it is lost, you can always call the
bank and ask them to block it. This avoids misusing the card by any. But when it is cash, you are not left
with that option and you will end up losing your money. Cards are waterproof hence you don't have to get
panicked even if water spilled over your wallet. They are strong and durable.
21
b) Crime rates will decrease:

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

c)Provides credit facility:

How about having a card that provides you a credit facility? That sounds good right? With the
advent of credit cards, you can purchase anything today and you are given sufficient time to pay for it.
Only with plastic money, you avail this credit facility. The advantage of having this facility is that you
need not go behind people to borrow money in case of emergencies, instead, you can use the card in your
hand. Also, you get ample amount of time to repay the amount. It is like a best buddy who helps you in
case of financial needs. Purchase today and pay later, isn't that a benefit you are getting? This factor is one
of the main reasons why people are attracted towards credit cards.

d)Tracking transactions become easy:

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

22
e)0% Instalment options:

Certain credit cards provide its customers the facility to convert their purchases from selected
outlets to instalment options of 3, 6 or 12 months at 0% interest rate. The customer is given the option to
select the period of instalment which cannot be changed later. If you have selected 6 months instalment
plan and paid it off within 5 months, then you will have to pay an extra fee. Therefore, be careful and pay
only according to the instalment period selected. It is an amazing facility offered by the banks as it helps
you to purchase that thing you wish today and pay in equal instalments within a period of specific time.
Will you avail this facility if you are using cash? A big No is the answer. Therefore, this is indeed an
advantage of plastic money.

● Dis-Advantages of Plastic Money

Like everything, plastic money also has its own merits and demerits. We should wisely use it keeping all
the below points in mind. If you are clever, you can make use of the cards but not everyone can be clever.
So, for those who are not aware of the cards and its disadvantages should always be careful to avoid
themselves being in trouble. Many people play with cards and might not end up paying a single penny as
interest. Never follow them as not everyone is smart with cards and we might end up losing money.

a) Just plastic money won't help always:

Plastic money is not a complete replacement for cash. In certain places, we need cash itself. While
buying fish from the market or when paying to the newspaper boy, we need cash itself as they do not
carry POS (Point of Sale) machine to swipe the plastic money. Similarly, we pay money at religious
places for offerings, there also they do not take plastic money. Unless we have the facility to use plastic
money everywhere, we cannot replace cash completely. Still, there are small retail shops which do not
take plastic money. In villages, hardly we find any shops that accept plastic money. It makes us necessary
to carry some cash always for our safety.

b) Plastic Money is also not 100% safe:

There is a certain amount of risk involved in transactions which involves plastic money as well.
Especially when doing online shopping. We are exchanging the details relating to our card over the
internet which is not always a safe place. Some websites are just set up to steal our financial information
23
and loot

24
money thereby. We should not fall in to such scams and hackers. One should be a smart online shopper in
this world.

c)Minimum purchase requirements:

One of the major disadvantages of using plastic money is that one needs to make a minimum
purchase in order to swipe their card. For instance, if the minimum purchase is Rs. 50.00, and we have
purchased items for only Rs. 40.00, you can't use your card for this transaction unless you purchase for
Rs. 50.00. In this case, you will have to purchase something unnecessary to make it Rs. 50.00. If we had
sufficient cash in hand, we could have avoided spending extra Rs. 10.00.

d)Service charge in certain cases:

When we are using plastic money instead of cash, in certain cases the bank charges a service charge
for the purchase of certain items. For instance, in some countries, the service charge is levied on card
transactions when you purchase gold from jewellery. When paying cash, this additional charge will not be
taken.

e) Card too can get damaged:

Imagine a situation wherein you have made a purchase and when at the counter you realize that
your card is damaged or when trying to swipe, the transaction is not getting proceed due to some chip
error or damage. You will wish if you had some cash in hand. These cases occur only when plastic money
is used. It might be a rare case but the possibility cannot be completely ignored.

f) Interest, for non-payment:

A credit card allows you to purchase today and pay for at a later period. It gives you a credit period,
but if we fail to make the payment within the due date, interest will be charged. When we are using cash,
we are not taking any credit from the bank, hence non-payment does not occur.

25
● Conclusion about Pros and Cons of Plastic Money:

We are living in a world where almost every other person holds plastic money along with cash. But
we should know the advantages and disadvantages of it in order to use the plastic money efficiently. It is
true that at times plastic money is of great help but we should admit that it is not the case always. One
should be wise when using plastic money or cash. Whatever it is, money has value and we should not fall
a victim for thefts be it online or not.

26
1.5 Types of Plastic Cards

Bank issues plastic card with magnetic strip that holds machine readable identification code. Bank
cards are used for e-commerce and for banking transactions through ATMs. Generally, credit cards and
debit cards are basically two types of plastic cards which represent monetary transactions. Apart from
these some more cards are in usage. They are:

Plastic Cards

A) Credit Card
B) Debit Card
C) Smart Card
D) Charge Card
E) Amex Card
F) Master Card And Visa
G) ATM Card
H) Dinner Club
Card I)Photo Card
J) Global Card
K) Co-Branded Card
L) Affinity Card
M)Add on Cards
N) Check Card

A) Credit Card;

Credit card is the one of the delivery channels of the banking services. Cards are issued to approve
client for purchase of goods or services from authorised merchant establishment on the credit guarantee of
issue of credit card. Credit cards allow cardholders to pay for purchases made over a period and to carry a
balance from one billing cycle to the next. Credit card purchases normally become payable after a free
credit period, during which no interest or finance charge is imposed currently. Different types are credit
cards are in usage such as business credit cards, gold credit cards, Auto/fuel credit cards, Travel credit
cards etc.

27
● Parties Involved in Credit Card:
The credit card scheme typically involves the following parties:

a) Card-issues:
The organisation which issues credit card.

b) Cardholders:
The person who are authorised to use credit cards for the payment of goods and services.

c) Merchants:
The entities which agree to accept credit card for payment of goods and services.

d) Merchant acquires:
Banks/NBFCS which enter into agreements with merchants to process their credit card
transactions.

e) Credit card associations:

Organisations that licence card issue and issue credit cards under their trade mark.

● Recent Type of Credit Card:

a) Silver credit card:

Silver credit card can be availed by anyone who is under the category of salaried and has a work
experience of around 4-5 years. These cards have a low membership fee and there are no interest charges
for initial months on balance transfers.

b) Gold credit card:

Individual with higher income can avail a gold credit card form any bank in India. The applicant
should have good credit same score.
Example: PNB Global Gold Card, LIC Gold Credit Card, Kotak Feast Gold Card etc.

28
c)Classic credit cards:
It came with features like global acceptance, revolving credit, cash advance, rewards programme,
supplementary cards, insurance and a dedicated 24 x 7 customer care helpdesk for customers. Most
classic cards do not carry annual fees or joining fees and are offered at low finance charges.
Example: IOB Classic Credit Card, IndusInd Bank Classic Credit Card RBL Bank Classic Shopper Card
etc.

d)Credit card for women:

Some banks issue credit cards to female customer and the card is specially designed for women. These
cards mainly focus on shopping rewards and cash back offers.
Examples: ICICI Bank Coral Card, HDFC Bank Solitaire premium women's Credit Card, Citibank
Rewards Credit Card etc.

e) Titanium credit cards:

It is designed with privileges and benefits. The key feature of this card is Titanium rewards program
that is offered to customers. This rewards program includes accrual of reward points, redemption of gifts
and air miles, cash back offers etc.
Examples: Tata Titanium Card, Tata Croma Titanium Carder Titanium Delight Card etc.

f) Apart from the above type of cards, some more type of credit cards is issued by banks and NBFCs.
They are platinum credit cards, rewards credit cards, auto/fuel credit cards, balance transfer credit
cards, business/corporate credit cards, cash back credit cards, lifestyle credit cards travel credit
cards etc.

● Benefits of Credit Cards:

The benefits of credit cards can be seen from two views:

A) Benefits to the Cardholders.
B) Benefits to the Issuers.
A) Benefits to the cardholders:

● The cardholder need not always carry cash.

● Some card provides a free insurance cover to the cardholder against loss of life due to accident.
● The issuer of card offers rewards and gifts to the Cardholders.

29
● Family members of the cardholders can avail this facility.
● The services of cards are available at 24 x 7 x 365.
● Most of the cards are linked with ATM facility.
● The cardholder can avail immediate cash credit form credit card up to certain limit.
● Most credit cards accumulate points on purchase which can be redeemed against gifts/discount
coupons on shops/hotels/restaurants.
B) Benefits to the issuers:

● This business offers higher profits.

● The issuers can also improve their name and image by saving-large number of credit cardholder's
base.
● It is an easy way to extend credit to customers.
● If provide ample opportunity to banks for generation of additional revenue.

● Drawback of Credit Card:

● It would be waste of money to subscribe to a credit card if the card is not utilized.
● Credit cards tempt the holder for more purchases beyond their income and repaying capacity. ●
The user invariable ends up paying none than the actual price of the product obtained from the
merchant establishment.
● The cost involved in the credit card business is high.

● Performance of Credit Cards:

Credit cards in India are going ground. Several banks in India are encouraging people to use credit
cards. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners
Club and American Express. However, in India, it was introduced during 1981. The first card was issued
in India by visa in 1981. The country's first gold card was also issued by visa in 1986. The first
international credit card was issued to a restricted number of customers by Andhra Bank in 1987.
According to Reserve Bank of India; total of 36.24 million credit cards were in operation in January 2018.
The number of transactions using credit cards grew by 9.4% year-on year. In January, the total numbers
of transactions through credit cards were 129.8 million. Due to advancement of technology and easy
accessibility to credit they provide for card users; they have gained popularity and wide acceptance in the
market today.

30
 B) Debit Card;

Debit card are substitutes for cash or cheque payments, much the same way that credit cards are.
However, the bank issues debit card only if the person has an account in the blank. When a debit card is
used to make a payment, the total amount charged is instantly reduced from the bank account balance.
Debit cards can be used to make payment online and they are arguably more secure than credit cards.
Popular debit card in India is:
● IDFC Debit Card
● Axis Burgundy World Debit Card.
● SBI Basic Card.
● HDFC Women's Advantage Debit Card
● Metro Coral Debit Card.
● Axis Bank Online Rewards Debit Card etc.

● Performance of Debit Cards:

Debit cards look like ATM cards and it is also known as check cards. When a debit card is used at a
merchant establishment, the merchant swipes card through an electronic Point of Sale (POS) terminal
which is directly linked up with the debit card issuing bank and the cardholder's account immediately gets
debited. Debit cards are accepted at many locations, including grocery stores, retail stores, restaurants etc.
In India almost all the banks issue debit card to its account holders.

Debit card transactions rose to more than 1 billion in January 2017 form 817 million in preceding year.
The incremental growth has been driven mostly by card swipes at POS terminals. In January 2018, the
number of debit cards increased to 846.7 million, with 4.23 million new cardholders. Between January
2017 to January 2018. India added 28.72 million debit cards.

● Dangerous/Disadvantages of Debit Cards:

● There are almost no security measures and a person can use a debit card to clean out the
cardholder's account if that person knows the PIN.

31
● Most debit cardholders prefer using the debit cards only for withdrawing cash from ATM. There is
always a lucking feat in the minds of customers that their bank balance may be knocked off by
card thieves.
● It does not prevent the account from being overdrawn and has less affordability than credit card.
● A debit card also has a narrower acceptable area in India, with many merchants not accepting it
since they are charged a fee every time they do.

C) Smart Cards

A plastic card which contains a PC chip and empowering the holder to buy products and
enterprises, enter limited territories, get to therapeutic, money related or different records or perform
different activities requiring information put away on the chip. No recognizable proof mark or instalment
approval is required for utilizing this card. At present or soon, we might most likely utilize a keen card to:

● Dial a relationship on a mobile phone and be charged on a for each call premise.
● Establish our very own character when signing on to a web gets to supplier or to an online
financial institution.
● Pay for ceasing at halting meters or to hop on cable cars, gets ready or transports.
● Give medical clinics or specialists individual information without rounding out a structure.
● Make little purchase on electronics
● Web stores (a sort of digital money)
● Buy gas at gas station.

D) Charge cards

A charge card conveys every one of the highlights of Visas. In any case, in the wake of utilizing a
charge card we should satisfy the whole sum charged, by the due date. On the off chance that we neglect
to do as such, we are probably going to be considered as defaulter and will often need to pay up a lofty
late instillment charge. When we utilize a Mastercard we are not pronounced a defaulter regardless of
whether we miss our due date. A 2.95% late instalment charges are exacted in our next charging
articulation.
32
E) Amex cards

Amex represents American Express and is one of the notable charge cards. This card has its own
vendor foundation tie ups and does not rely upon the system of ace card as visa. This card is normally
implied for high pay bunch classifications and organizations and may not be satisfactory at numerous
outlets. There is a wide assortment of exceptional benefits offered to Amex cardholders.

F) Master card and Visa

Ace card and visa are worldwide non-benefit associations committed to advance the development
of the card business over the world. They have fabricated a tremendous system of trader foundations so
clients worldwide may utilize their particular Mastercard’s to make different buys.

G) ATM Cards

These cards are ordinarily utilized at programmed teller machine (ATM) to pull back money, make
stores or exchange assets between records. ATM card is utilized by embeddings the card into a
programmed teller machine and enter an individual distinguishing proof number or PIN, for security. The
framework checks the record for satisfactory assets before allowing any exchange.

H) Diners Club Cards

Burger joints club is marked charge card. There is wide assortment of extraordinary benefits
offered to the Diners club cardholders. For example, as a cardholder you can set your own spending limit.
In addition, the card has its very own shipper foundations tie ups and does not rely upon the system of
Master card or Visa. Be that as it may, since this card is normally implied for high-salary gather classes, it
may not be adequate at numerous outlets. It would be a smart thought to check whether a part foundation
accepts the card or not progress of time.

33
I) Photo card

On the off chance that your photo is engraved on a card, at that point you have what is known as a
photograph card. Doing this recognizes the client of the charge card and is in this manner thought about
more secure. Moreover, much of the time, your photograph card can work as your distinguish card also.

J) Global Card

Worldwide Cards permit us the adaptability and accommodation of utilizing a Mastercard

instead of money or explorers checks while voyaging abroad for either business or individual reasons.

K) Co-Branded cards

Co marked cards are Mastercard’s issued via card organizations that have tied up with a famous
brand to offer certain selective advantages to the purchaser. For instance, the Citi Times card gives us the
advantages of a Citi Bank charge card alongside an exceptional markdown on Times Music tapes, free
section to Times music Events and so on.

L) Affinity cards

The card guarantor ties ups with mainstream association, foundations which are frequently
nonbenefit associations (Citi WWF card or the Stanch art-cricket Cards) to offer a proclivity card. At the
point when the card is utilized, a specific rate is added to the association/establishment by the card
guarantor.

M) Add on Cards

An extra card enables us to apply for an extra charge card inside the general credit limit. We can
apply for this card for the sake of relatives like our dad/mother/mate/sibling/sister/all kids over 18 years
old. Our charging articulation would mirror the subtleties of buys made utilizing the extra card an ever-
increasing number of Indians are utilizing them as an advantageous method of instalment.

N) Check Cards
34
 These cards can be utilized to buy items at any trader that acknowledges VISA or Master Card
Credit cards. Superficially, they look precisely like ATM cards. Notwithstanding, check cards can't be
utilized at programmed teller machines, when utilizing a check card, no PIN is utilized.

● Some of the most popular cards in India are:

● ANZ - Gold

● ANZ - Silver

● Bank Of India - India card

● Bol - Taj Premium

● Bol Gold

● Bob Exclusive

● BOB - Premium

● Canara Bank - Canard

● Citibank - Gold

● Citibank - Silver

● Citibank WWF Card

● Citibank Visa Card for Women

● Citibank Cry Card

● Citibank Silver International Credit Card

● Citibank Women's International Credit Card

35
● Citibank Gold International Credit Card

● Citibank Electronic Credit Card

● Citibank Maruti International Credit Card

● Citibank Times Card

● Citibank Citi Diners Club Card

● Citibank Indian Oil International Credit Card

● DCB Payless Card

● HSBC - Gold

● HSBC - Classic

● ICICI Sterling Silver Credit Card

● ICICI Solid Gold Credit Card

● ICICI True Blue Credit Card

● SBI Card

● Stanch art - Gold

● Stanch art - Executive

● Stanch art – Classic

● Thomas Cook Standard Chartered Global Credit Card

36
1.6 Effect on the Usage of Plastic Money After Demonetization

Our country Republic of India is moving towards Cashless economy. Associate degree economy
same to be moneyless wherever the dealing of cash is in digital kind apart from cash. Our country started
clutches money driven economy and began to manoeuvre towards digital banking when Prime Minister,
Narendra Modi declared withdrawal of Rs. a thousand and Rs. five hundred currency notes from the
circulation in Gregorian calendar month 2016. This initiative to remodel Republic of India to the cashless
economy and termination inspired digital and e- transactions. Termination brought a colossal radical
amendment within the dealing mode in the general public and the positive aspect thereto is our nation had
taken a larger leap towards a cashless economy. By the arrival of the idea of plastic cash, customers like
plastic cash over money transactions for purchase of products and repair either physically or just about, by
the means that of cards like credit cards, debit cards, post-paid balance cards, sensible cards, etc.

The growth in usage of plastic cards spiked post termination. As per tally bulletin, accomplished in
March 2017, master card transactions were Rs.106.22 million and debit cards transactions were Rs.271.17
million. In step with this, Vijay Shekhar Sharma, CEO. Paytm, 7% increase of shoppers was discovered
reaching the worth of 160 million in but a month post termination. A continuous reform by the govt
includes a impact and also the economy is moving towards money less and turning into digital.

During the kept seething exchange on the upsides of end, there's been a ground-breaking development
in advanced instalments and exchanges inside the months since the cash swap was proclaimed on
Gregorian schedule month eight, in venture with Federal Reserve Bank of Republic of India information.
Card exchanges at reason for deal (POS) terminals at middle class areas have flooded. intelligent a
positive for the economy as extra people start exploitation their platinum cards for instalments rather than
for withdrawing cash at ATMs. Charge record credit exchanges rose to over 1billion in Jan from 817
million a year ago. While ATM exchanges have stayed steady at around 700 million, the dynamic
development has been driven basically via card swipes at POS terminals.

In the year when end. advanced exchanges have completely developed essentially. In fact, interruptions
inside the computerized house haven't exclusively changed the strategy we tend to deal with our accounts,
they need also made contactless and cashless exchanges the well-known option of the numerous among

37
U.S. Furthermore, with computerized wallets, quick reaction (QR) codes, near field correspondence
(NFC) innovation, wave frameworks, virtual cards, brought together instalment interface (UPI) and
Aadhaar Pay giving first class secure instalments decisions, the cell phone has turned into the preeminent
requested across the board gadget. Nearby the developing use of advanced wallet inside the previous one
year, the measure of ATM exchanges has also up, demonstrating the conjunction of cash and
computerized inside the Indian economy. According to count reports, advanced exchanges have
completely become thirteen.5 percent from Rs 109.82 trillion in August to Rs 124.69 trillion in
September, the best was in March at Rs 149,59 trillion. Mobi Kwik by and by has sixty 5,000,000
application clients, that has over multiplied when end. Computerized wallets and credit/platinum cards are
the decision to cash when end to manage the money crunch. a lot of people use wallets on an everyday for
a decent differ of administrations together with on-line revives. utility instalments, travel appointments
and moving picture sticker price among others, the govt and firms are advancing computerized
instalments by giving lower esteem. For example, HDFC Bank has as of late deferred of charges on-line
exchanges through RTGS and NEFT. Thus, you are not going to cover administration regulatory
obligation on card exchanges up to Rs 2000.

38
1.7 PLASTIC MONEY FRAUDS

Now a days money in circulation cannot be seen physically as most of the transactions are
virtual in nature. Consumers need not carry money or Cheque books to make purchases, instead they use
their Credit Card or Debit Card against their purchase. Physical money transaction does not take place in
the sales transaction. The purchaser does not know who makes the payment and how the payment is
disbursed. At the same time the merchant establishment does not know the authentication of the Credit
Card user. Due to this, the Plastic money system or Virtual money system creates many problems to both
the buyer and the seller.

The Credit Card frauds and frauds in net banking emerge due to the illegal or unauthorised use of
account for personal gain, misrepresentation of account information to obtain goods and or services and
an act of criminal deception (mislead with intent) by use of unauthorized account and/or personal
information.

Contrary to popular belief, merchants are far more at risk from credit card fraud than the
cardholders. While consumers may face trouble trying to get a fraudulent charge reversed, merchants lose
the cost of the product sold, pay chargeback fees, and fear from the risk of having their merchant account
closed.

Shopping on the internet poses a greater threat as the merchant (on the web site as he) is no longer
protected with advantages of physical verification such as signature check, photo identification, etc. In
fact, it is almost impossible to perform any of the 'physical world" checks necessary to detect who is at the
other end of the transaction. This makes the internet extremely attractive to fraud perpetrators.

39
1.8 PLASTIC CARD FRAUD PREVENTION STRATEGIES

There are four primary strategies which can be used to prevent plastic card fraud.

A) Action by Card Issuers: -

Card issuers can adopt a wide variety of strategies to reduce the risk of plastic card fraud. The most
pressing need is for financial institutions not to issue cards to individuals unless they are satisfied of their
identity. Although the 100-point system for opening accounts is a starting point, this needs to be used
properly with primary documents such as birth certificates being thoroughly checked and validated. The
primary identification documents themselves might need to be produced in such a way as to reduce the
possibilities of counterfeiting.

Various procedures could also be adopted to ensure that plastic cards are not stolen and that cards
and PINs are communicated securely to customers, Banks could also assist merchants by notifying them
promptly of stolen cards and PINS. For example, banks now have a centralised fraud reporting and
investigation agency for plastic cards, Card link Services Limited, which maintains close liaison with the
police. Card link investigates cases of fraudulent use of cards in each state and territory of Australia, and
gathers evidence which is then forwarded to police.

Cards could also be required to display the holder's photograph, while security procedures could be
enhanced for those involved in the legitimate manufacture of cards to ensure that PVC sheets, dyes,
embossers and encoders are not stolen and used for counterfeiting.

One of the main strategies used to prevent EFTPOS fraud has been simply to lower floor limits (the
transaction value at which authorisation is required from banks before the card can be accepted).

Finally, various transaction monitoring strategies have been suggested to minimise losses through
smart card fraud by quickly identifying fraudulent transactions and limiting the maximum value of
transactions.

B) Action by Merchants: -

Frauds involving merchants constitute a large problem for financial institutions as merchants or their
40
employees are ideally placed to permit access to computer networks and to alter transaction details.
Bonney

41
discusses various ways to prevent credit card fraud including the conduct of random authorisation checks
of merchants' bank accounts and sales voucher records, as well as merchants advertising the fact that steps
are being taken to prevent credit card fraud in their premises, and closer examination of the security
features of cards by sales staff when transactions are being conducted.

Merchants should also obtain a delivery address and telephone number when orders are placed by
telephone and then call the number to verify the information provided; obtain proof of identity from
individuals who collect goods purchased by credit card and inspect the credit card used: and ensure that
deliveries of goods are made to the person who placed the order.

Finally, merchants should examine any suspicious behaviour and appearance of customers. This
might involve customers selecting purchases rapidly. being dressed inconsistently with the nature of the
purchases selected; customers who split purchases between various slips in an attempt to forestall
authorisation calls to issuers; customers seeking to rush a transaction; customers who make a purchase
and then return for more later, customers who make multiple purchases all under the floor limit; and
customers who buy many of the same items but in different colours and sizes.

Unfortunately, it is often not possible for merchants to use all these techniques through fear of deterring
potential customers.

C)Action by Cardholders: -

Protection of one's card, PIN or password is the primary crime prevention strategy which card
holders need to take. Although consumers are advised not to disclose their PIN, keep it with their card, or
write it on the card, studies have revealed that between 20 and 70 per cent of people fail to adhere to such
advice.

Where these strategies have been consistently implemented, substantial reductions in fraud can
occur. In Britain, for example, the use of a variety of strategies designed to prevent plastic card fraud
resulted in a 41 per cent reduction in such fraud overall between 1991 and 1994, while losses occurring at
retail points of sale were reduced by 49 per cent during the same period. Losses from cards lost or stolen
in the post were reduced by 62 per cent between 1991 and 1994.

42
D)Technological Solutions: -

A wide range of technological solutions have also been devised in order to reduce the security risks
associated with plastic card payment systems.

● Terminal Safeguards: -

ATM and EFTPOS terminals need to be manufactured in such a way as to ensure that access cannot
be gained to cables, and that reserves of cash cannot be stolen in the case of ATMs. Machines should also
be in secure places where users are protected both physically, as well as against shoulder-surfing, to
obtain PINS. Barriers can be fitted to ATMs and horizontal key pads used to prevent shoulder-surfing in
accordance with Australian Standard AS 3769, which governs the positioning of ATM and EFTPOS
devices where PIN entry is required.

● Protections Against Card Counterfeiting: -

Various strategies have been devised to enhance the security of plastic cards and to make them more
difficult to alter or counterfeit. These include the use of security printing, micro-printing, holograms,
embossed characters, tamper- evident signature panels, magnetic stripes with improved card validation
technologies, and indent printing. Although such protections against card counterfeiting have deterred
many potential offenders, organised criminal groups who are often as technologically adept as those in the
security industries - have often been successful in defeating new security measures.

● Card Restrictions: -

As an alternative to target hardening, the risk of large-scale fraud through the use of plastic cards
could be reduced by placing limits on the size of card-based transactions or the amounts of money that
may be stored on plastic cards. There could also be a limit on the life of the cards.

● Cardholder Verification: -

Some of the strategies devised to improve cardholder verification include the use of cards which have
a photograph of the user: laser engraved signatures; longer PINS; and various biometric means of
verifying identity, such as signature, fingerprint, palm, lip, ear, or retina scanning (Sullivan 1987, p. 189).
The costs
43
and volume of data required to be stored online to enable comparison for any potential user might,
however, be prohibitive.

● Fraud Detection Software: -

Software has also been devised which is able to analyse plastic cardholder spending patterns in order
to alert individuals to the presence of unauthorised transactions. Merchant deposit monitoring techniques
also exist to uncover claiming patterns of corrupt merchants. One software package called PRISM
(Proactive Fraud Risk Management) is used to detect creFunction of Innovation: - An entrepreneur is the
one who conceives ideas for improvement in quality and quantity of business. He continuously remains
informed about innovations and tries to apply them whenever wherever possible.mints and configuration
(Nestor Inc. 1996). While initial installation costs may be high, the benefits obtained through the
prevention and detection of fraud make the use of such systems worthwhile for large organisations.

● Improved Cryptography: -

Finally, cryptography, which is the mainstay of electronic banking security systems, could be
improved to protect ATM transmissions and data held in stored value cards. This is currently being
explored to secure online electronic cash systems by joint ventures such as MasterCard and Visa
International's Secure Electronic Transaction Protocol. which uses public key encryption to protect data
from being comp- romised, and is expected to be fully operational shortly.

44
1.9 Introduction to Entrepreneurs

The terms entrepreneurship and entrepreneur were first described in the 18th century in a study
written by Say. He presented entrepreneur as a person who allocates his own capital to risky and unknown
investment. Today it is possible to see, in some resumes, the self-recognition as an entrepreneur by the
candidates who apply to positions in any company. In curricula is shown as an added value of the
contemporary professional, the entrepreneurship experience. According to Izquieta Diaz de Aldi (2017),
etymologically “the word entrepreneur and the verb come from French, entrepreneur, enterprise and
entreprenerd respectively. According to the Global Entrepreneurship Monitor, cited by Tulio & Guerrero
(2012), entrepreneurship is: A process, that is, it analyses from the intentions following an initial or
“nascent” phase of the businesses that are in gestation, later with the new businesses that can be identified
as those that have started operations, up to the phase of the established business and possibly the
discontinuation of the business (Tulio & Guerrero, 2012) Entrepreneurship in a broader sense can be
described as a creative and innovative response to the environment. Entrepreneur is an innovator who
introduces something new into the economy, a new method of production not yet tested by the experience
in branch of manufacturer concerned, a product with which consumers are not familiar or of new market
ever exploited. After defining entrepreneur, it is appropriate to focus on what is entrepreneurship. One
who can face up to decision making can learn to be an entrepreneur and to behave entrepreneurially.
Entrepreneurship is a behavior rather than personality trait. Entrepreneurship may be practiced by big and
old business units alike. Further it is not confined to economic institutions. It extends to all institutions-
economic and social and to ownership patterns: private, public and co - operative sector enterprises.
Entrepreneurship is increasingly recognized as an important driver of economic growth, productivity,
innovation and employment, and it is widely accepted as a key aspect of economic dynamism.
Transforming ideas into economic opportunities is the important issue of entrepreneurship. History shows
that economic progress has been significantly advanced by pragmatic people who are entrepreneurial and
innovative, able to exploit opportunities and willing to take risks. The role of entrepreneurship and an
entrepreneurial culture in economic and social development has often been underestimated. Over the
years, however, it has become increasingly apparent that entrepreneurship indeed contributes to economic
development. In both developed and developing countries entrepreneurship is a key to rapid economic
development. The role of entrepreneurship in economic development involves more than just increasing
per capita output and income. It includes initiating and constituting change in the business and society.
Entrepreneurs have been considered instrumental in initiating and sustaining socio-economic

45
development. There are evidences to

46
believe that countries which have proportionately higher percentage of entrepreneurs in their population
have developed at a faster rate as compared to countries, which have lesser percentage of them.
Entrepreneurship is the art of starting a business, basically a start-up company offering creative product,
process or service. We can say that it is an activity full of creativity. An entrepreneur perceives everything
as a chance and displays bias in taking decision to exploit the chance. An entrepreneur is a creator or a
designer who designs new ideas and business processes according to the market requirements and his/her
own passion. To be a successful entrepreneur, it is very important to have managerial skill and strong
team building abilities. Leadership attributes are a sign of successful entrepreneurs. Some political
economists regard leadership, management ability, and team building skills to be the essential qualities of
an entrepreneur.

1.9.1 Functions of Entrepreneurs

An entrepreneur is one who carries out the whole set of activities of the business. The functions of
an entrepreneur are co-ordination of the business management of the enterprise, risk taking, controlling
the enterprise, innovation for change, motivation, and other related activities. He/she must react to new
ideas, demands and exploit the opportunities. He/she is expected to perform the following functions.

a) Assumption of Risk: -
An entrepreneur assumes all possible risks of business including possibilities of change in tastes
of consumers, techniques of production and invention. An entrepreneur tries to reduce the uncertainties
by his initiative, skill, and good judgment.

b) Business Decisions: -
The entrepreneur must decide the nature and type of goods to be produced. He enters a business
that according to his knowledge is optimally profitable. He uses his skills and ideas to take best decisions
for development of his business.

c)Managerial Functions: -
An entrepreneur formulates plans, arranges finance, purchases raw materials, provides
production facilities, organizes sales and assumes task of personal management. In a large establishment,
paid personnel do these functions.

47
d)Function of Innovation: -
An entrepreneur is the one who conceives ideas for improvement in quality and quantity of
business. He continuously remains informed about innovations and tries to apply them whenever
wherever possible.
1.9.2 Meaning of Micro Enterprise

If you have great business ideas but don’t want to run a big company, there’s a name for that. This
article describes what it means to be a micro entrepreneur. Simply put, a micro entrepreneur is the founder
of a micro business. These super small companies are generally defined as businesses that begin with
minimal investment and have less than ten employees. A micro-enterprise is generally defined as a small
business employing nine people or fewer, and having a balance sheet or turnover less than a certain
amount. The terms microenterprise and microbusiness have the same meaning, though traditionally when
referring to a small business financed by microcredit the term microenterprise is often used. Similarly,
when referring to a small, usually legal business that is not financed by microcredit, the term
microbusiness (or microbusiness) is often used. Internationally, most microenterprises are family
businesses employing one or two persons. Most microenterprise owners are primarily interested in
earning a living to support themselves and their families. Microenterprises add value to the economy of
many countries all over the world by generating micro-businesses, better adjusting revenues, and reducing
the overall cost of doing business. The number of micro entrepreneurs is high because they often do not
find adequate training or formal jobs available to them. Microenterprises very often offer products and
services specifically for local areas. This type of company provides food products, household goods, and
specialized demand in repair or care services typical to the area or regions where they are located. In
developing countries, micro, small and medium enterprises (MSEs) are considered as the most important
development agents in society. MSEs offer many millions of poor people around the world the possibility
of earning money, training, work experience, and employment. Further, enterprises serve as valuable
partners of the large companies. These are being considered as engines of economic growth worldwide
and include poverty alleviation. Among the MSMEs, the micro food enterprise was greatly encouraged in
the Indian market, the foods are in great demand anywhere in the market since it is one of the basic needs.
Another thing that encouraged the performance of food industry was its better market share of Micro
enterprises and small business has always played a significant role in the economic and social
development of a nation. Micro enterprise encourage economic development in rural and far-flung areas.
They are valuable partners to big enterprises as suppliers and providers of support services. They serve as
breeding ground for new entrepreneurs and large corporations. If you are a seller on Etsy, own a supply
chain on amazon, or own a home-based shop, all are examples of Microbusiness. A microbusiness, aka

48
small business, or micro-enterprise, operates with

49
generally 1-5 employees requiring a small start-up capital. A micro enterprise is a small business which
sells goods and/or services to a local area or a local market. Typically, a micro enterprise starts with some
form of funding known as micro credit or micro finance. The collective impact of micro enterprises has
been significant in comparison to large corporations, particularly in the area of job creation. This
enterprise largely belonging to unorganized sectors and creates employment. Micro-enterprises can
improve the income, quality of life, and purchasing power of the community. The type of business that is
opened depends on the kind of community and their needs. They provide jobs and uplift not only the
entrepreneur but the community at large. By definition, a microenterprise is very small. Microenterprises
are small businesses that are financed by microcredit, a small loan available to people who have no
collateral, credit history, savings, or employment history. Micro Business means a company which meets
one of the following criteria: consumes less than 293,000 kWh of gas a year, or consumes less than
100,000 kWh of electricity a year, or has fewer than ten employees (or their full-time equivalent) and an
annual turnover or annual balance sheet total not exceeding 2m. The modest loans are often sufficient to
get a small local business off the ground. These businesses serve a vital purpose in improving the quality
of life for people in developing countries, and generally provide a product or service in their communities.
Microenterprises not only help improve the quality of life for business owners, but they also add value to
the local economy. They can boost purchasing power, improve income, and create job.

• Advantages Of Micro Enterprise

a) Freedom and Satisfaction -

Freedom and satisfaction are rare to experience when you work behind a desk and take orders
from your seniors in a 9 to 5 job. One of the major advantages of a micro business is the personal
satisfaction of turning your thoughts into action. You are free to leverage the available resources and
utilize the best of talent in the best possible way to make your business a thriving venture.

b) Decision making -
If you own your small business, you can lead the business in any direction you want. Being the
boss of your company means doing whatever it takes to bring good to your business.

c)Financial gain -
Micro-entrepreneurship lets you achieve higher financial gains than any other job if your strategy
is hitting the button. Owning a small business means you have a big chance to be financially independent.

d)Hands-on Experience -
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 Apart from satisfaction, working from 9 to 5 cannot give you the experience of running a business.
As a micro-entrepreneur, you will get to learn at your own pace and faster.

e) Job Security -
Profit or not, nobody is going to fire you or penalize you for mistakes. With mistakes, you get to
learn more. A small business can start with a small capital; there may be some financial setbacks in the
worst - case scenario. As far as the job is concerned, there is nobody can take to it from you.

f) Equity -
Owning a small business means that you have equity, or the amount of something that you
yourself own, in something. In the future, you may decide to keep this equity, sell it, or pass it on to future
generations for others to continue the business. If you decide to sell the equity, you may use that money to
launch a new business venture or for other endeavors.

g) Self – Esteem -
Small business owners can launch and maintain a small and successful business. Doing this can
increase your level of self-esteem and self-worth. You might even inspire others to have the confidence to
start their own small businesses of their choice.

• Dis-Advantages of Micro Enterprise

a) Limited Resources -
Since a microbusiness is started using a small of capital with just 4 or 5 members, it often lacks
access to resources. The resources are necessary for a business to begin, particularly a lack of manpower.
In a competitive market, you need both planning to attract a consumer base. This may be one of the
common disadvantages of small businesses.

b) Working Extra Hours -

Sacrificing your personal time on your business is one of the major disadvantages of running a
small business. Generally, you would have to work 50-59 hours a week. While you have the advantage to
decide your work hours, there is no fixed time to schedule your own business. You may have to stretch
working hours initially, focusing on establishing your business.

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c)Multitasking -
Small businesses often have a limited number of members, from partners to employees. Oftentimes,
you may have to deal with stuff you are not good at. Expect making coffee or doing the cleaning job on
your own. Since you are the boss, it is your responsibility to fix the office space and make the faulty
computers work. From encouraging the employees to dealing with finances, it is all up to you. Keep in
mind that Multitasking can also be the biggest disadvantages of micro business when there is no one
around with extra skills.

d)Choice Making -
The decision is the most important part of every business. Being an advantage of a small business
can also disappoint you at times. Every decision you make directly affects the success of the business and
employees. From choosing the suitable fit for the job to deciding the flow of funds, it must be you who
has to step forth. Investing in the wrong process can lead your business venture into shambles.

e) Commitment -
Let us face it; Microbusiness is not for everyone. Multitasking, decision-making, and doing things
you have not done takes a lot of legwork and planning. The biggest concern of starting a small business is
investment. Fulfilling all the essential responsibilities and taking care of your family is like a double-
edged sword. Not everyone is good at handling immense work pressure. Microbusiness does need a lot of
commitment.

f) Possible income instability -

There is a chance that you're going to face income instability as a small business owner. This may
be especially true when you are beginning your journey as a small business owner because new start-ups
might not generate as much attention and revenue as larger and more established businesses or
companies. Since small business owners pay themselves based on how much revenue they are able to
generate, you might experience fluctuations in your income. To prepare for possible income instability,
you might plan to live off savings or a bank loan.

g) Potential of financial risk -

There is a level of financial risk involved in owning a small business, which means losing money is
something you may face as a small business owner. In many cases, you take out a business loan to launch
a small business, which means you are in debt to a lender. This may prove to be a risk you face until you
pay the loan off while trying to generate revenue.

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 • Challenges Faced by Micro Entrepreneurs

a) Financial Issue -
Micro entrepreneurs in India face many challenges due to a lack of finance. Most micro
entrepreneurs come from rural and education-deprived areas, and their ignorance of government benefits
makes them unaware of their special financial privileges. Their carelessness leads them to make bad
financial decisions, causing financial difficulties.
Furthermore, Micro enterprises in India are typically less creditworthy than their larger counterparts. As
micro entrepreneurs have no assets to surrender as collateral, lenders cannot analyze or know whether
they can repay their loans.

b) Marketing and Managerial-Related Challenges-

Micro entrepreneurs growth remains a significant hurdle due to the absence of entrepreneurial,
managerial, and marketing skills. Boosting sales and acquiring new customers requires the right
marketing strategies. Additionally, Micro entrepreneurs face challenges related to ineffective marketing
strategies, lack of market analysis, and identifying target audiences in India. Thus, Micro entrepreneurs
cannot compete due to a lack of professionalism and structured management.
Furthermore, a lack of education, knowledge about market trends, consumer preferences, and advanced
technology has hindered the development of this sector.

c)Technology Remains a Primary Deterrent-

Due to a lack of expertise and awareness, most businesses miss out on the latest technological
developments. To grow their businesses, Micro entrepreneurs must keep up with the changing trends in
technology.

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CHAPTER 2
RESEARCH METHODOLOGY

What Is Research?

Research is any original and systematic investigation undertaken in order to increase knowledge
and understanding and to establish facts and principles. It comprises the creation of ideas and generation
of knowledge that lead to new and substantial improved insights and/or the development of new
materials, devices, products, and processes. It should have the potential to produce results that are
sufficiently relevant to increase knowledge. Good reflective inquiry produces theories and hypotheses and
benefits any intellectual attempt to analyse facts and phenomena. This search for individual facts or data
requires an open-ended question for which there is no ready answer. Data are gathered through
experiments, surveys or other methodologies.

2.1 Objective of The Project

This project research helps to find out the various challenges faced by micro entrepreneurs while
accepting plastic money.

The objectives of the study are: -

● To know the problems faced by micro entrepreneurs using plastic money

● To study the Benefits of plastic money

● To know the importance of plastic money in the daily life of consumer

54
● To find out the preferred types of plastic and mobile money used by subsistence micro and
small entrepreneurs.

● To determine the consequences of failure by subsistence micro and small entrepreneurs to

include plastic and mobile money.

2.2 Scope of The Study: -

The current study is primarily concerned with the problems faced by micro entrepreneurs while
accepting the plastic money. The target entrepreneurs will be from the Mumbai city.

2.3 Research Design

This project is based on exploratory study as well on descriptive study. The Descriptive research is
here carried out to describe about the phenomenon. This study is hence done to understand the various
problems faced by micro entrepreneurs while accepting Plastic money.

● Sampling Unit: -

Sampling unit implies that who are the respondents i.e. the micro entrepreneurs.

● Sampling Size: -

Using convenient sampling technique, a sample size of 30 people is taken into consideration.

● Sampling Technique: -

Sampling technique is the technique used to select the sample size. Convenient sampling technique
used in this Research, in this micro entrepreneurs were taken according to convenience of research study.

● Sampling Design: -

55
Since the information is to be taken from micro entrepreneurs, a questionnaire is prepared for studying the
challenges faced by micro entrepreneurs while accepting the plastic money.

● Data Collection Source: -

The study based on both secondary and primary data. The secondary information will be collected
from different published materials vis. Books, magazines & websites etc the primary data source for this
study involved the use of questionnaire. The questionnaire was distributed to the micro entrepreneurs for
processing towards answering the research questions. The study was done with the help of primary data
using the questionnaire on a tool to assess the information about micro entrepreneurs.

● Statistical Tools: -

There are various statistical tools which are used in analysing data. The following tools are used for
representing and analysing data. a) Table
b) Percentage
c) Diagram
d)Charts

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2.4 Limitations to The Study: -

There are some problems which I faced during my research study and listed few problems are:

• The first problem which I faced is unable to getting the co-operation of the people. Many of the
respondents did not agree to the need and utility of the project and hence not agreed to provide
the information.

• The behaviour of the people is unpredictable which may result in the lacking of the accuracy in
the data.

• As the sample size of the survey was so small and comprise of only 30 people, the result may
have some prone to error.

• Study accuracy is based upon the respondent's response.

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CHAPTER 3
REVIEW OF LITERATURE

• PLASTIC MONEY: -

Plasticity has become a favourite topic of the researchers in the pod-globalization and
denunciation both in India and abroad. The major weightage of research has been on various sus including
frauds, security, wage pattern, new method of e-payment one. The earlier studies done on plastic money
usage needs dermal. It has been focused briefly in general way with regard to the type of work on this
subject in India. But it is expected that, chemical review of the studies would focus to our problem and
cable us to indicate the arms which have remained neglected at the hands of the researchers. The existing
studies focused on the am like usage of plastic money, perception towards plastic cand, awareness of
plastic money among cardholders, is diction, study and behaviour of plastic card holders, frauds on plastic
money, stay, impact of plastic money on banking system, option of technologies on plastic money
payments system frauds, online banking and plastic money gird. Hence, the present study in attempt is
made so include all types of cards in the analysis.

Mathews and Slocum (1969) conducted research to find out the relationship between an individual’s
social class and his purchasing behavior in using a commercial bank credit card. They conducted a
questionnaire study and used a two-factor index of social positioning combining occupation and education
to measure an individual’s social class membership. The study found that commercial bank credit card
holders exhibit different card-use patterns related to class membership. Members of lower classes tend to
use their card for making purchases in installments while those of the upper classes use it for convenience.
These differences reflect respective social class values, which can be, used as a basis for marketing credit
cards.

Murphy and Ott (1977) investigate the use of credit cards as a method of price discrimination. They
attempted to find the special patterns of acceptance of credit cards over both, type of commodities and
type of merchant establishments. They find that credit cards will most likely be honored – for luxury
goods, for goods that are highly sustainable for time, at specialty stores or firms carrying homogeneous
line of merchandise and at employee operated rather than owner operated establishments. They are less
likely to be homered in market for necessities and in stores where sales personnel work for
commission. This
58
research thus suggested that credit cards were mostly being used for the purposes of purchasing luxury
goods than necessities.

Gold’s tucker and Hirschman (1977) in their study on bank credit card users, found that while making a
purchase with the credit card the individual must decide not only to use credit card as a system of
payment but also must decide among various types of credit cards available such as- bank cards, store-
issue cards, travel and entertainment cards. The choice to use a particular type of credit card amongst
those available is influenced by factors such as characteristics of the individual features of the credit card
system, characteristics of the item being purchased, policies of the place where the purchase is being
made and the characteristics of the situation in which the transaction takes place.

Mandeep Kaur and Kamal Preet Kaur (2008), in their article, "Development of Plastic Cards Market:
Past, Present and Future Scenario in Indian Banks" conclude that Indian banking sector is accepting the
challenge of information technology as all the groups of bankers have now recognized it as essential
requirement for their survival and growth in future Despite the strong advances in e-payments, an
estimated 90 percent of personal consumption expenditure in India is still made with cash which indicates
the tremendous growth potential of this business. So this can be considered as mere beginning which
indicates the bright future prospects of plastic card market in India. P Manikandan (2013) in his research
paper "Plastic Money a way for cash Less Payment System" examined that Plastic Money Le. usage of
Credit card was measured a luxury, and has become needed. These plastic money and electronic payments
was and used by only higher income group. This facility extended not only to customers in urban areas or
cities, but also to customers residing in rural area. However, today, with development of banking and
trading activity, the fixed income group or salaried classes are also start using the plastic money and
electronic payment systems and particularly Credit cards. In this research paper an attempt has been made
to study an overview of the development of banking in the plastic cards usage trends since these have
been introduced in Indian banking sector. The study also highlights the role of these cards as electronic
payment tool to be used by customers and discusses the penetration of these cards in replacement of cash
and paper money. The factors for adoption of plastic money in replacement of cash and paper money have
been identified which shows the preference of the customers for plastic cards over the cash and paper
money.

59
Subhani in (2011), conducted a study on 'Plastic Money/Credit Cards Charisma for Now and Then'. The
study was based to find out the charisma of plastic money, its usability and affordability and its impact on
its preference to use. The research found that the preference to use of plastic money/ credit card has its
pros and cons with its usability and affordability. According to the consumer behaviour, plastic money is
a form of conditioning and acts as a stimulus which qualifies a consumer to spend. The study shows that
the preference to go for plastic money has a positive association with the easy use of plastic money
because the precept of credit card usability is linked with a psychological phenomenon that people are
likely to spend less with credit card and spend more with the same amount of cash on hand in the same
budget and this precept also linked with the consumer self-convenience, Le. convenience and easy use
which delves into spending.

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

Hand Patel and Urvi Amin (2012) in their research paper "Plastic Money Roadway Towards Cashless
Society discussed that plastic money has been an inevitable part of the transaction and with-it life
becomes easy and development would take better place and along with the use of plastic money it
becomes possible to control the money laundering.

Anupama Sharma (2012)in her research paper “Plastic card frauds and the countermeasures: towards a
safer payment mechanism” have thrown light on the number of frauds increased considerably in the usage
of plastic cards as in case of plastic card frauds the most affected parties are the merchants of goods and
services as they have to bear the full liability for losses due to frauds, the banks also bears some cost
especially the indirect cost whereas the cardholders are least affected because of limited consumer
liability

60
and concluded that all these losses can be dealt with by making the prudent use of the new technology and
taking the respective counter measures.

Bansi Patel and Urvi Amin (2012) in their research paper "Debit card money: Road may Towards Cash
Less Society" discussed that now days in any transaction Plastic money becomes inevitable part of
transaction and with-it life becomes more easy and development would take better place and along with
the plastic money it becomes possible that control the money laundry and effective utilization of financial
system would become possible which would also helpful for tax legislation. In this research paper an
attempt has been made to study an overview of the development of banking in debit card usage trends
since these have been introduced in Indian banking sectors. The study also highlights the role these cards
as electronic payment tool to he used by customer and know these cards in replacement of cash and paper
money.

Sharma (2012)in her research paper "Debit card frauds and the countermeasures: towards a safer
payment mechanism" have thrown light on the number of frauds increased considerably in usage of
plastic cards as in case of debit card frauds the most affected parties are the merchants of goods and
services as they have to bear the full liability for losses due to frauds, the banks also bears some cost
especially the indirect cost whereas the cardholders are least affected because of limited consumer
liability and concluded that all these losses can be dealt with by making the prudent use of the new
technology and taking the respective counter measures.

P Manikandan (2013) in his research paper "Plastic Money a way for cashless payment system'
discussed that usage of Credit card was seen as a luxury. He examined that plastic money and e- payments
was used only by people of higher income group. This facility extended in customers in urban areas as
well as to the customers residing in rural areas. Today, with development of banking sector, the fixed
income group or saluted classes have also started using the plastic money and e-payment systems.

Tabrez Haq and Bushra Malik, (2014) in their research paper Consumer response towards the usage of
plastic money examined that with an increase of shift of paper money to plastic money in India by

61
consumers, the distribution of plastic money has increased since banking sector has become more
aggressive. The paper daily investigates the acceptability of the cards among the Indian consumer und the
factors influencing the card choice.

Drupelet Kaur, Mrs. Rashmi Sharma (2017) has tried to understand the importance of the usage of
plastic cards and its impact on banking sectors. Plastic money has gained importance in people's life.
Majority of peoples use plastic money because of its convenience and portability and for safety measure.
Banking sectors more depend on plastic money to meet the challenges occurs in dynamic world by
applying E finance system properly.

Sukhjinder Kaur (2018) in his study he evaluated the relevance of the plastic and its impact on the
consumer preferences. After money has changed its form from coin to cush, in present it available in
formless form as an electronic payment to make transactions. This study also analyses the acceptability
level of the plastic cards among the consumers.

Mr. A Prashanth, Mrs. Gokula Kumar, Ms. Sowmya, Ms Keerthana, Ms. Priyanka (2019) this study
aim is to find out that e banking and card banking is one of the facilities offered by the banking sector.
This study is based on the customer preference towards the plastic money and to know the socio-
economic status of the cardholder to use the different kinds of cards facilitated by the banks and to know
the problems associated with the use of plastic card.

Richa Goel, Seema Sahai, Anita Vikas Garg (2019) in their study they made an attempt to measure the
factors which affects the people to switch from cash to cashless form. They found that there is a long way
for India to become a cashless economy. People have lack of trust and lack of confidence in the digital
payment mode while using. There are many people who still do not have any knowledge about digital
payment in India. There are problems and difficulties to fulfil the dream of digital India. But in the future
cashless economy will grow and bring out many benefits and advantages along with it.

62
Jyothi Kapoor Bhargava (2021) This study depicts the total outlook of the usage of plastic money and
its trend in the banking sectors. This study also highlighted the factors behind the customer preference
towards the usage of plastic money. Plastic money is used as electronic payment tool by consumers. This
card has been replaced the paper money.

Ameya P Khanjar, Prof. Dr. Vijaya Kumar DUA (2021)) have made an attempt to study about the
evolution of paper currency in India and various rules administered in different regions in India and their
thought processes and impact on currency. The evaluation of paper currency helps to understand Hindu,
Christian, Islamic, Buddhist cultural dimensions in India and their influence on their currency design.
Bank notes and coins usage helps to make interaction with human mind with material idea and product.

63
 • MICRO ENTERPRISES: -

In simple words, MSMEs are known as engine of growth for world economies due to its contribution
like its 99% of world’s economic enterprises are MSMEs, which counts for 55-95% of country’s GDP
along with 50% of the world’s labour force is employed by MSMEs (Caroline Repeg, 2013). Its
importance is recognized not in world but also in India due to its contribution in Employment, GDP,
Output etc. After achieving the independence, Government of India took several steps for the upliftment
of this sector. Many studies have done to capture the growth pattern of MSME in world and in India.
Hence, much research has been done in post liberalization period to known the magnitude and direction of
growth of MSMEs. In this chapter, exhaustive review of literature is done to find the factor which are
responsible for the performance of MSMEs.

J.M. Keynes (1936) had studied the forces for very first time that determines employment policy which is
to be followed in Industrialization. In his study he stated that entrepreneur will offer the employment till
the time their output and profit will be maximize. He states that the productivity of labour will determine
the level of employment as there is a positive relationship between both.

Timmons, (1978);Kasey & Watson, (1993);Story, (1994)Small enterprises has high failure rate, no
collateral security offer, less creditworthiness, high administrative cost, inadequate credit history, not
suitable risk management and lack of information system with financial institution of MSMEs which
demotivates to give credit. In comparison to large business, small businesses need more credit and they
has higher propensity to fail also.

Murthy, (1980); Yadav, Vinod Kumar, (2013) Small and medium enterprises face the problem of
lending, financing and marketing problem. SMEs are not following the definite capital structure.
Enterprises are not having the adequate finance. Enterprises in rural are unable to access credit from
64
financial institutions.

65
Owners of these enterprises do not have financial leverage knowledge. Micro enterprises rely on external
sources. Small scale enterprises are not maintaining the adequate financial records also.

Andrea, (1981) Because of insufficient finance small enterprises are unable to solve problem of
inadequate skilled labor, accessibility to modern and new updated technology and unable to access
market.

Ganesan, (1982); Gunathilake, (1997); Ganesan, (2000) Researcher found that MSMEs are not having
sufficient savings and cash inflows which creates problems in getting outside credit. In Sri Lanka
financial and non- financial institutions do not lend credit to MSMEs for development.

Agarwal, (1987) Wrong selection of location, under estimation of cost of capital, demand over
estimation, not timely implementation of project, inadequate financial management and cost control and
managerial insufficiency, inadequate finance and working capital, weak collection of bill receivables,
weak management of funds are some of the problems of small industries.

Gangwal, (1990) Shortage of liquid assets, not satisfactory debt equity ratio, delayed payment to
suppliers, problems in payment of instalments are some of the financial problems of MSMEs.

Bradford Jane, (1993) Researchers found that low ability to provide collateral for loan, lack of financial
expertise, inadequate management skills, undercapitalized, lack of knowledge of management of cash
flow, dependent on local market and restricted customers are the problems which MSMEs factors.

Berger and Udall, (1998) Policies affects the funding and creditworthy of MSMEs in both developed and
developing nations. Credit availability affects the micro, small and medium enterprises of any country. In
US, smaller SMEs rely on internal source of finance i.e., personal savings, angel finance, and trade credit
for the initial level of capital. This is because of narrow accessibility to small level business in the market.

66
Ramachandra, (2001) Sick enterprises can be revived by providing suitable technology, training relating
to management, skilled labor, promotion of export and all this is possible with sufficient finance. The
financial institutions should disburse enough to SMEs which promotes them. There is a need of awareness
of credit availability and various schemes of SMEs.

Berger &Udall, (2002) There are various problems which affects survival and growth of MSMEs. There
are economic problems which affects the survival of micro, small and medium enterprises i.e. unable to
obtain external finance, inadequate capital, high operating expenses, weak money management, high
losses because of crime, payroll meeting, unable to obtain trade credit, inadequate profit, lacks ability in
meeting financial obligations, high health insurance cost, high cost of workers compensation.

Baughn &Neupert, (2003) Entrepreneurs depends on financial assistance from friends and family which
offer unreliable credit source. Financial challenges faced by African MSMEs are unable to exploit
entrepreneurial opportunities. Many micro, small and medium enterprises are excluded from formal
financial system which adversely affects the entrepreneurship growth in Africa.

Bala Subrahmanyam (2004) has used the time series data so as to study the impact of new economic
policy on the MSMEs. He found that the effect of globalization is negative on Indian MSMEs sector as it
suffered in terms of Number of units, Employment, Output and Export. This negative effect may be due
to high competition as well as outdated technology and financial infrastructure. Even though this policy
changes have open new opportunities and increased the market for MSME sector. He suggested that
MSME sector of India have lots of caliber if it improve its technological environment and financial
infrastructure then it can compete globally and can contribute more in national income and employment.

Rathod, C. B. (2007) in his paper highlights the role and importance of small-scale industries in India.
His main aim was to study the growth of SSI sector in terms of exports which showed an excellent result
in last decade. Further he studied the effect of globalization on SSI sector which has open many
opportunities as well as threats for this industrial sector. SSI was facing many problems in this era of
globalization which

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were hindering the growth of sector. The study suggested that infrastructure, financial, regulatory factor
needs positive alteration for the speedy growth of this sector in India.

Sia, Manuel & Donna Nails, (2008) The micro and small entrepreneurs have small capital base, they are
dependent on personal savings, loan taken by friends and relatives. In the developing countries in the
phase of startup, entrepreneurs are dependent on informal source of funding and experiences the basic
problems i.e., mismanagement in cash flow.

Sonia and Kansai Rajeev (2009) in their study highlighted the effect of New Economic Policy of 1991
on MSME sector in India. They used four indicators of MSME growth of India i.e., employment, export,
number of working units and production during pre and post liberalization period. It's a secondary
databased study which used Annual Average Growth Rate (AAGR) as a tool for calculation. The result
reveals that the performance of all four parameters is better in pre liberalization period as compare to post
liberalization period. Hence, we can say the new economic policy was not very fruitful for MSME in
India.

Mawoli & Aliyu, (2010) MSMEs face problem in raising funds from capital and money market both.
Loans are provided by commercial bank base on the availability of collateral security, risk level,
performance of previous years. Commercial banks provide loan at high interest. In Nigeria, small and
medium enterprises are provided less than one percent of total capital required by them.

Kamalini, Rashki & Arbabi, (2011) As compared to large enterprises, MSMEs are dependent on
external finance with high rate of interest, they are riskier and rate of failure is more. MSMEs can’t
implement innovative ideas because of financial inadequate resources. Due to high-risk project of
innovation financial institutions do not provide loan to small firms. Government does not provide funds
for innovative ideas because of bureaucratic procedure of application. Because of regulatory reasons
innovative projects are unnecessary delayed.

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According to Dun & Bradstreet (2012) MSMEs are known as growth engine for India. This sector is of
zenith importance to Indian economy due to its 45% contribution in India’s total output produced, as well
as it employed around 73 million people all over the country. There are about 31 million working units
which approximately contribute 40% of India’s exports. These sectors in India are heterogenous in nature
by providing a wide range of products related to manufacturing or service.

Rajib Lahiri (2012) in his study compare the performance of MSMEs in pre and post liberalization
period based on average annual growth rates. It is a secondary data-based study done based on four Macro
Economic variables i.e., Number of working units, Employment, Production and Export. The study
reveals that Number of working units, Production and Export of MSMEs has lower AAGR in post
liberalization period as compare to pre liberalization whereas Employment shows a slight high value in
post. This paper concludes that the growth of MSME sector in post liberalization period is not satisfactory
in India.

Srinivas et al. (2013) in his study compare the growth of MSMEs in India based on secondary data. He
uses the time series data of Number of units, Employment, Production, and Investment from 2001 to
2010. The finding reveals that the number of MSMEs unit had increased by 200% where rest three
parameters Employment, Production and Investment have shown steady increased from 2001 to 2010 in
India. All parameters show increasing trend in this 10-year period in India.

Kumar & Kumar, (2014) Small and women entrepreneurs face the problem of lack of financial
resources and working capital. They have inadequate external funds because of lack of collateral security
and credit in the market. Women are not having properties on their name that is why they lack security for
availing loan. Women do not understand the difficult and complicated formalities of bank loans, time
taking process in obtaining loans and huge transaction cost involved makes women difficult in getting
loans and in becoming successful entrepreneurs.

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Siddiqui, (2015) The various problems of financing are high credit cost, insufficient working capital,
unable to recover money from debtors, adequate and timely credit is not available, lack of collateral
requirement. For availing loan paper work is excessive used in financial institutions.

Norimasa, Saidabad & Zarei (2016) Entrepreneurs face problems like for startup how to raise capital,
inadequate fund. Many entrepreneurs are unable to access external funds because of inadequate security and credit
in market. The process of loan availing facility is time consuming. Other problems is decrease in profit because of
competition, financial statements are not properly maintained by entrepreneurs of MSMEs, inadequate guarantees
for raising loans, through equity problem in raising capital, dependent on money lenders for loans which are high
cost.

Rashmi Khanna & Satyendra. Singh (2018) in their study focused on the importance of MSMEs sector
by shedding light on the contribution of MSME sector to total industrial production and GDP which is
showing increased trend over the period. This is a secondary databased study which also focus that the
number of enterprises, employment, and investment in fixed assets in India has increased over the period.
The role of MSMEs in India is increasing day by day and have become a thrust area for growth in future.
Therefore, this sector need zenith attention as well as proper nurturing for the socio- economic
development of economy.

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CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

4.1 SURVEY QUESTIONNAIRE RESPONSE

1. GENDER

Pie Chart [1]

Gender Percentage

Male 56.7%

Female 43.3%

Other NIL

Total 100%

INTERPRETATION: -
In the first pie chart we can see the number of Micro Entrepreneurs taken into consideration that
are 30 responses and out of which whether how many male and female candidates have been under The
primary data analysis and as in the chart there are 56.7% of male and 43.3% of female candidates under
observation.

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2. AGE

Pie Chart [2]

Age Percentage

Below 25 years 26.7%

26 years to 35 years 56.7%

36 years to 45 years 10%

Above 45 years 6.6%

Total 100%

INTERPRETATION: -

It indicates the age group of the Micro Entrepreneurs under observation. 26.7% Micro Entrepreneurs
are the age group of below 25 years. 56.7% of Micro Entrepreneurs are between the age group of 26 years
to 35 years. 10% of the Micro Entrepreneurs are between the age group of 36 years to 45 years. And
6.6% of Micro Entrepreneurs are the age of above 45 years.

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3. QUALIFICATION

Pie Chart [3]

Qualification Percentage

SSC and below 16.7%

HSC 36.7%

Graduate 30%

Post Graduate 16.7%

Total 100%

INTERPRETATION:

It indicates the Qualification of the Micro Entrepreneurs under observation. 16.7% of the Micro
Entrepreneurs are qualified till the SSC and below the SSC. 36.7% of the Micro Entrepreneurs are
qualified till HSC. 30% of the Micro Entrepreneurs are qualified till Graduation. And 16.7% of the Micro
Entrepreneurs are qualified till Post Graduation.

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4. STARTING CAPITAL

Pie Chart[4]

Starting Captial Percentage

Below 20,000 3.0%

20,000 To 40,000 66.7%

40,000 To 60,000 23.3%

Above 60,000 7.0%

Total 100%

INTERPRETATION: -

It indicates the Starting Capital of Micro Entrepreneurs under observation. 3.0% of the Micro
Entrepreneurs have the starting capital of below 20,000 RS, 66.7% of the Micro Entrepreneurs have the
starting capital of 20,000 to 40,000 RS, 23.3% of the Micro Entrepreneurs have the starting capital of
40,000 to 60,000 RS, 7.0% of the Micro Entrepreneurs have the starting capital of Above 60,000 RS.

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5. SOURCE OF CAPITAL

Pie Chart [5]

Source of capital Percentage

Own savings 26.7%

From family members 40%

Loans 33.3%

Total 100%

INTERPRETATION

It indicates the source of capital of the Micro Entrepreneurs. The source of capital of 26.7% of the
Micro Entrepreneurs Is Own Savings. The source of capital of 40% of the Micro Entrepreneurs Are From
family members. The source of capital of 33.3% of the Micro Entrepreneurs Is loans.

75
6. FROM HOW LONG YOU ARE OPERATING YOUR BUSSINESS

Pie Chart [6]

Particulars Percentage
Less than 2 years 20%
2 TO 5 years 56.7%
6 TO 10 years 16.7%
More than 10 years 6.6%
Total 100%

INTERPRETATION:

It indicates from how long Micro Entrepreneurs were operating their business. 20% of the Micro
Entrepreneurs were operating their business from less than 2 years, 56.7% of the Micro Entrepreneurs
were operating their business from 2 TO 5 years, 16.7% of the Micro Entrepreneurs were operating their
business from 6 TO 10 years, 6.6% of the Micro Entrepreneurs were operating their business from more
than 10 years.

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7. YOUR FAMILY SUPPORTS YOUR BUSSINESS?

Pie Chart [7]

Particulars Percentage

Yes 83.3%

No 16.7%

Total 100%

INTERPRETATION:

It indicates whether the family of Micro entrepreneurs are supports their business or not. 83.3%
of the micro entrepreneurs get the support from their family. And 16.7% of the Micro entrepreneurs not
getting the support from the family.

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8. DO YOU FIND IT FOR THE PAYMENTS PLASTIC MONEY IS MORE CONVENIENT THAN
THE CASH?

Pie Chart [8]

Particulars Percentage

Yes 76.7%

No 23.3%

Total 100%

INTERPRETATION:

It indicates that the Micro Entrepreneurs find it for the payments plastic money is more convenient
than cash or not. 76.7% of the Micro Entrepreneurs find it for the payments plastic money is more
convenient than cash., and 23.3% of the Micro Entrepreneurs does find it for the payments plastic money
is more convenient than cash.

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9. DO YOU FIND IT TIME CONSUMING TO ACCEPT PLASTIC MONEY FROM THE
CONSUMERS AS COMPARED TO CASH?

Pie Chart [9]

Particulars Percentage

Yes 93.3%

No 6.7%

Total 100%

INTERPRETRATION:

It indicates that the Micro Entrepreneurs find it time consuming to accept plastic money from the
consumers as compared to cash or not. 93.3% of the Micro Entrepreneurs find it time consuming to accept
plastic money from the consumers as compared to cash., and 6.7% of the Micro Entrepreneurs does not
find it time consuming to accept plastic money from the consumers as compared to cash.

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10. DO YOU THINK AFTER COVID 19, USE OF PLASTIC MONEY HAS INCREASED?

Pie Chart [10]

Particulars Percentage

Yes 73.3%

No 26.7%

Maybe NIL

Total 100%

INTERPRETATION:

It indicates that the what Micro Entrepreneurs think after COVID 19, use of plastic money
has increased or not. 73.3% of the Micro Entrepreneurs think after COVID 19, use of plastic money has
increased., and 26.7% of the Micro Entrepreneurs think after COVID 19, use of plastic money has not
increased.

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11. WHICH OF THE FOLLOWING PLASTIC CARDS ARE YOU AWARE OF ?

Particulars Percentage
Debit card 66.7%
Credit card 90%
Smart card 43.3%
Prepaid card 26.7%
Amex card, kisan card 3.3%
Kisan card, add on card 3.3%
Kisan card 3.3%

INTERPRETATION:

It indicates that the Micro Entrepreneurs awareness towards the plastic cards. 66.7% of the Micro
Entrepreneurs are aware of the Debit card, 90% of the Micro Entrepreneurs are aware of the Credit card.,
43.3% of the Micro Entrepreneurs are aware of the Smart card., 26.7% of the Micro Entrepreneurs are
aware of the Prepaid card., And 9.9% of the Micro Entrepreneurs are aware of the Amex card, Kisan card,
& add on cards.

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12. WHEN DID YOU START USING CARD SWIPING MACHINE IN BUSSINESS?

Pie Chart [11]

Particulars Percentage

From the beginning 30%

2 to 4 years back 50%

Few months ago, 16.7%

Recently 3.3%

Total 100%

INTERPRETATION:

It indicates that from when the Micro Entrepreneurs start using card swiping machine in their
business. 30% of the Micro Entrepreneurs start using card swiping machine in their business from the
beginning.,50% of the Micro Entrepreneurs start using card swiping machine in their business 2 to 4 years
back. 16.7% of the Micro Entrepreneurs start using card swiping machine in their business few months
ago. And 3.3% of the Micro Entrepreneurs start using card swiping machine in their business recently.

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13. WHICH OF THE CARDS CUSTOMERS MOSTLY PREFER FOR THE PAYMENTS?

Particulars Percentage

Credit card 50%

Debit card 83.3%

Charge card 30%

Prepaid card 6.7%

INTERPRETATION:

It indicates that which of the cards customers mostly use for the payments. 50% of the customers
prefer to pay with the Credit card. 83.3% of the customers prefer to pay with the Debit card. 30% of the
customers prefer to pay with the Charge card. And 6.7% of the customers prefer to pay with the Prepaid
card.

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14. WHICH OF THE CHALLENGES YOU FACED WHILE ACCEPTING PLASTIC MONEY FROM
THE CONSUMERS?

Particulars Percentage

Technical issues 76.7%

The risk of fraud 63.3%

Time consuming 36.7%

Poor knowledge about the technology 46.7%

INTERPRETATION:

It indicates that the various challenges faced by Micro Entrepreneurs while accepting money from the
consumers. 76.7% of the Micro Entrepreneurs faces the problem like technical issues. 63.6% of the Micro
Entrepreneurs faces the problem like the risk of fraud. 36.7% of the Micro Entrepreneurs faces the
problem like they find it time consuming. And 46.7% of the Micro Entrepreneurs faces the problem like
poor knowledge about the technology.

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15. AT LAST WHICH TYPE OF PAYMENT YOU WILL MOSTLY PREFER AS A OWNER OF THE
BUSINESS?

Particulars Percentage

Cash 40%

Cashless 73.3%

INTERPRETATION:

It indicates that which type of payment Micro Entrepreneurs mostly prefer as the owner of the
business. 40% of the Micro Entrepreneurs mostly prefer the payment through the cash. 73.3% of the
Micro Entrepreneurs mostly prefer the payment through the cashless form.

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CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS: -

The key findings of the problems faced by micro entrepreneurs while accepting plastic money, are
presented below;

• Most of the responded micro entrepreneurs are male.

• Most of the micro entrepreneurs are between the age of 26 years to 35 years.

• Most of the micro entrepreneurs are qualified till HSC.

• The starting capital of most of the micro entrepreneurs is 20,000 to 40,000 RS.

• Source of capital of most of the micro entrepreneurs is from the family members.

• Most of the micro entrepreneurs are operating their business from the 2 to 5 years.

• Most of the micro entrepreneurs gets the support from their family.

• Most of the micro entrepreneurs find it for the payments plastic money is more convenient than
the cash.

• Most of the micro entrepreneurs find it time consuming to accept plastic money from the
consumers as compared to cash.

• Most of the micro entrepreneurs think that after COVID 19, use of plastic money has increased.

• The micro entrepreneurs are mostly aware of the Debit Card and Credit Card.

• Most of the micro entrepreneurs are started using the card swiping machine in their business from
2 to 4 years back.

• Credit Card and Debit Card are the two cards which are mostly use by the customers for the
payments from the observation of micro entrepreneurs.

• The risk of fraud and the technical issues are the major problems which are faced by micro
entrepreneurs while accepting plastic money.

• The micro entrepreneurs are mostly preferring the cashless payments as the owner of the business.
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5.2 SUGGESTIONS:

The key Suggestions of the problems faced by micro entrepreneurs while accepting plastic
money, are presented below;

Many micro entrepreneurs does not find it for the payments plastic money is more convenient
than the cash. Also, they find it time consuming to accept the payments through plastic money. They
mostly prefer the cash for the payments. They face various problems like technical issues, risk of fraud,
and Many others.

So, the suggestion is, Since plastic money does not require any paperwork, it is a very convenient
option for the payments. Also the plastic money transactions are much more secure than the cash
transactions. So, the micro entrepreneurs do not want to lose their customers they have to deal with the
plastic money. They must give most preference to the plastic money than the cash. Because in today’s
world everyone wants to be more digital. Also, micro entrepreneurs have to get the full knowledge about
the technical issues they faced while accepting plastic money from the customers. And they must
overcome these problems.

5.3CONCLUSION:

The present study is made to analysis the problems faced by Micro entrepreneurs in accepting
plastic money. Looking at the broad scenario, there is no doubt that the plastic money is rising up in the
market. The day will come when all the transaction will be done through plastic money, yet there are
more further technologies which have been implemented in Japan and US but India is still growing in its
first phase. The day will come when all Micro Entrepreneurs starts to accept the plastic money from the
customers without any fear. The various problems Micro Entrepreneurs are facing today will surely
overcome them in the future. Also, People will start keeping bunch of cards in their pockets instead of
currencies. The day will come when the cinema tickets will be purchased through credit cards. Thus, in
this growing phenomenon there doesn't seem any declination instead it growing at a higher rate. It can be
concluded that plastic money has a very bright future in the coming years because of the increasing trend
of ecommerce.

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 APPENDIX

QUESTIONAIRRE

“Challenges faced by micro entrepreneurs in accepting plastic money”

Q.1 Name of the respondent

Q.2 Gender
• Male
• Female
• Other

Q.3 Age
• Below 25 years
• 25 years to 35 years
• 36 years to 45 years
• Above 45 years

Q.4 Qualification
• SSC and below
• HSC
• Graduate
• Post Graduate

Q.5 Starting capital

• Below 20,000
• 20,000 to 40,000
• 40,000 to 60,000
• 60,000 and above

Q.6 Source of capital

• Own savings
• From family members
• Loans
• Others

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Q.7 From how long you are operating your business?
• Less than 2 years
• 2 to 5 years
• 6 to 10 years
• More than 10 years

Q.8 Your family supports your business?

• Yes
• No

Q.9 Do you find it for the payments plastic money is more convenient than the cash?
• Yes
• No

Q.10 Do you find it time consuming to accept plastic money from the consumers as compared
to cash?
• Yes
• No

Q.11 Do you think after COVID 19, use of plastic money has increased?
• Yes
• No
• Maybe

Q.12 Which of the following plastic cards are you aware of ?

• Debit Card
• Credit Card
• Smart Card
• Prepaid Card
• Others

Q.13 When did you start using card swiping machine in your business?
• From the beginning
• 2 to 4 years back
• Few months back
• Recently

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Q.14 Which of the cards customers mostly prefer for payments?
• Credit Card
• Debit Card
• Charge Card
• Prepaid Card
• Others

Q.15 Which of the challenges you faced while accepting plastic money from the consumers?
• Technical issues
• The risk of fraud
• Time consuming
• Poor knowledge about the technology
• Others

Q.16 At last which type of payment you will mostly prefer as a owner of business?
• Cash
• Cashless

90
 BIBILOGRAPHY

https://scholar.google.com/

https://www.researchgate.net/publication/328891419

https://shodhganga.inflibnet.ac.in/

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