Satisfaction of the credit card holders of the public, private and foreign sector banks.

Author:Chennappa, D.

    The current boom in plastic money is one of those rare moments in history when that agreement shifts and one payment form overtakes another as the preferred way to pay. The first such change came sometime between the 10th and 6th centuries B.C., when Greece and India introduced metal coins, which surpassed barter or the shell currencies of earlier times. Coins dominated trade upto 2000 years, until the introduction of cheque, by Italian merchants in the Middle Ages. In 1690, Massachusetts became the first of the colonies to introduce paper money. Cash took decades to gain broad acceptance, but eventually became the standard of payment for the next three centuries. (1)

    Although plastic money is in vogue the world over, it still has to catch up on India. For the year 2007-08, the total Personal Final Consumption Expenditure (PFCE) stood at Rs.26,07,584 crores, of which 2.22 percent of payments happened through credit cards. (2) The personal consumption expenditure through credit cards is one of the lowest at 1.6 percent in India compared to World average of 8.6 percent, Asia Pacific's 6 percent and even China's 3 percent. (3) Thus, people in India rely on cash particularly for all their transactional needs. This increases the amount of currency in circulation, which is around 16 percent of the total money supply--[M.sub.3]. (4)

    At the end of 2008, there are more than 5 billion credit cards in the world. The total number of credit card users in India as at June 2008 was 27.02 million, which were issued by more than 29 banks having transactional value of Rs.57958 crores. (6)

    The credit cards being one of the modes of electronic payment will help the economy, because, the total annual cost to an economy of maintaining a cash-payment system was at 5 per cent of GDP. Electronic payment systems cost 4 per cent. (7)


  2. To study the Year on Year (YoY) growth rate for number of credit cards issued.

  3. To analyze the satisfaction of credit cardholders of the Public sector banks.

  4. To analyze the satisfaction of credit cardholders of the Private sector banks

  5. To analyze the satisfaction of credit cardholders of the Foreign sector banks

  6. To present the association between satisfaction of the credit cardholders of Public, Private and Foreign sector banks.


    The following null hypotheses are drawn for testing:

    H01: There is no significant difference in the satisfaction of the credit cardholders of public, private and foreign sector banks.


    This study is based on both primary data as well as secondary data. The secondary data has been collected from RBI publications, banks reports, journals, periodicals etc. The primary data has been collected...

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