A STUDY ON THE LEVEL OF CUSTOMER AWARENESS ON THE USAGE OF DEBIT CARDS

INTRODUCTION

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

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

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

Since the past couple of decades, banking sector has evovled in such a way that it has surpassed its basic nature and is almost a vital centre for all financial affairs that takes place in an economy.

In the current scenario it is impossible to find a person without being a bank customer. And banks have become a vital centre for almost any financial affair that takes place in an economy. This has created an overloaded work for the banks and the time incurred by the customers for availing banking facilities has become vast. To avoid these time wastages and for the ease of the customers, banks have implemented many advancements.

These advancement in facilities has reduced the time incurred by customers for availing the features of banks. One of such advancements is the introduction of debit cards which is easy to avail and access and is being utilised by almost 90% of the customers.

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

CUSTOMR AWARENESS:

Customers are informed and remaindered about theproducts and are requested and persuaded to purchase theirproducts. Such communication may be made their along theproduct or well in advance of the introduction of product into themarket. Such communication becomes necessary when a newproduct or service is introduced in the market or an old product isimproved or it is simply to increase the sales of the products.“Awareness compasses all the tools in the marketingmix whose major role is persuasive communications.”PHILLIP KOTLER

The main features of awareness are:

1. Customers are informed about the product or services ofthe company. Either at the time of introduction of a newproduct into the market or when any change is made in theexisting product.

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

3. Customers are requested or persuaded to purchase theproduct and services of the company.

4. Awareness includes, advertising, personal selling and othersale promotion techniques.

Consumers must have awareness about the new productsand their usage. Such activities are performed by themanufacturer. It is the responsibility of the producer to getinformation about the consumers and prospective consumers sothat the necessary product may be served to meet theirdemands.Subject matter companies must do more than make goodproducts they must inform consumers about the product benefitsand carefully position products in customers mind. To do thismust skillfully use the mass promotion tools like advertising,sales promotion and public relations, personal selling, publicity.

NEED FOR STUDY

The main objective of the study is to know the Customer awareness with respect to Asian Paints.The need for this can be explained if one knows the importance of understanding the Customer awareness. So in the following paragraph the Customer awareness and its role in the success of an organization has been explained.Customer awareness are taken up to boost the sales of a product by the company. A company having production capabilities may produce a product and price is according and sell through the dealers and retailers by its distribution network.Considering the fact that consumer according to the time need, want and the purchasing power, it depends on the product, therefore, the marketers rely on the marketing mix to cater to the customers efficiently and effectively.So the companies producing the product, pricing and planning them have to carefully look into the minds of the consumers and place the products favorably in the minds of the consumers.

LIMITATIONS OF THE STUDY:

Customers mostly find it difficult to spare the time during the business hours.

Some respondents were not willing to give valuable suggestions.

The required information has been collected for an effective period of one month.

To study relies on secondary data sources and all limitations which applicable to that of secondary data are likely to have crept.

The study is restricted to IOB in particular branch of wall tax road in chennai

The major constraint for the research was the project duration which was 30 days. This was insufficient to cover the various areas in time

The branches of IOB was scattered and so it was difficult to collect data.

SCOPE OF THE STUDY:

The study aims at evaluating the performances of Indian overseas bank in relation to debit cards. It covers the efficiency and attitude of customers towards the banking services rendered by the Indian overseas bank in service level. The main aim is to create effective awareness to the consumers through the promotional activities done by the bank.

OBJECTIVES

PRIMARY OBJECTIVES:

* To find out which factors has got influence on customer awareness in banking Industry.* To know the awareness level of “IOB” customers as well as other customers.

SECONDARY OBJECTIVES:

* To identify the customer requirements.To analyze the customers perception regarding the preference of debit cards

INDUSTRIAL PROFILE:

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.

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

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.

DEFINITION:

The definition of a bank varies from country to country. See the relevant country page (below) for more information.

Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as, conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers.

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

The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When

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

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

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

receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period; paying or collecting cheques drawn by or paid in by customers[8]

Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include

financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.

STRANDARD ACTIVITIES:

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

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

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

Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-

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

PROFILE OF INDIAN OVERSEAS BANK:

INTRODUCTION

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

INDIAN OVERSEAS BANK was the first bank to venture into consumer credit, as it introduced the popular personal loan scheme. In 1964 , the bank started computerization in areas of inter branch reconciliation and provident fund accounts.

INDIAN OVERSEAS BANK was one of the 14 major banks which were nationalized in 1969. After nationalization, the bank emphasized on opening its branches in rural parts of India.

In 1979, INDIAN OVERSEAS BANK opened a foreign currency banking unit in the free trade zone in Colombo.

In the year 2000, INDIAN OVERSEAS BANK undertook an initial public offering that brought the government’s share in the bank’s equity down to 75%. The equity shares of IOB are listed in the Madras stock exchange(regional), Bombay stock exchange, and national stock exchange of india ltd, Mumbai. Since its exception, IOB has absorbed various banks including the latest- bharat overseas bank in 2007.

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

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

HISTORY IF INDIAN OVERSEAS BANK

In 1973, INDIAN OVERSEAS BANK was founded on 10th February, and had the distinction of three branches, at Chennai, karaikudi and Rangoon simultaneously commencing business on the inaugural day. The founder chairman was M.CT. CHIDAMBARAM CHETTIYAR.

During 1969 INDIAN OVERSEAS BANK was nationalized, the bank had 208 branches and business mix of Rs.156 crores.

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

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

Puri gramya bank (in orissa)

Pandya grama bank( in tamil nadu)

Dhenkanal grama bank (in orissa).

Under the MOU, the RRBS committed themselves to achieve targets under various business parameters for turning within a span of five years.

In 1988 MS.P.Bolina, deputy secretary, ministry of finance was appointed director of the bank with effect from September 4, in the place of