A

STUDY ON

POINT OF SALE (POS) AT STATE BANK OF INDIA

Submitted by: AAKASH J PARMAR

Enrollment No.: 127290592001 (MBA-3rd SEM)

Academic Year: 2012-2014

Guided By: Prof. AMOLA BHATT Mr.BHARAT KUMAR (RBO,SBI) In a partial fulfilment of MBA programme

SUBMITTED TO L.J.INSTITUTE OF MANAGEMENT STUDIES

AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD.

PREFACE In today’s era, the managerial ability is so demanded in the company. For doing better managerial work, the person must have the knowledge of the management. The knowledge is not only based on theoretical but also on practical aspects.

The students are required to examine the different industries to get the practical knowledge as well as it helps them to know about different types of management structure followed in different companies.

The practical study is an opportunity to blend the theoretical knowledge with practicality of the subjects. The training gives an opportunity to test and verify the application of theories and comprehended interaction between management theory and practice. Being the student of management, I have got this type of chance to apply knowledge of MBA 1st SEM & 2nd SEM into practicality.

I have done the training in one of the best government bank, “STATE BANK OF INDIA.”. After visiting the merchants carefully, I have tried to collect some important data & interpreted it in the best possible manner and best of my ability.

ACKNOWLEDGEMENT

It is my pleasure to present this report on “STATE BANK OF INDIA”. There are so many people involved in this project without whose support, it was not possible for me to prepare such a project report. I am thankful to all those persons who helped me in carrying out this work.

It was really a memorable training and I would like to thank Mr. BHARAT KUMAR and all those persons of STATE BANK OF INDIA, who have guided me in my training and made it really a successful one.

I am thankful to Prof. SIDDHARTH BIST honourable director of L.J.INSTITUTE OF MANAGEMENT STUDIES, co-ordinator PROF. AMOLA BHATT and who had helped and guided me in preparing this project report. I am also heartily thankful to all my friends who helped me in my project report.

I have tried my level best to present the available information in the best possible manner.

EXECUTIVE SUMMARY State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.

In the growing global competition, the productivity of any business concern depends upon the behavioural aspect of consumers. This topic deals with the merchants’ perception towards other Advance Product from SBI POS (Point Of Sale)

The state banks of India try to provide maximum pos to the merchant for effective cash collection and providing best facility to the customer. The state bank of India decided to provide knowledge of new products, awareness of new product, and use new technology for easy cash collection by the merchant.

TABLE OF CONTENT

SR NO.

TITLE PG. NO.

COMPANY AT GLANCE

1.Introduction : company

1.1 Introduction of Banking

1.2 Introduction of the SBI

1.3 General information

1.3.1 Objectives of the SBI

1.3.2 Mission & Vision

1.4 History of SBI

1.5 Structure

1.5.1 Current Board of Directors

1.6 International presence

1.7 Associate banks

1.8 Non-banking subsidiaries

1.9 Other SBI service points

2 2.0 Logo and slogan

2.1 Financial statements

2.1.1 5 Years Profit and Loss account

2.1.2 5 Years Balance sheet

3 3.0 Basic details of POS(Point Of Sale)

3.1 History

3.2 Software details of pos

3.2.1 Modern software (post 1990s)

3.2.2 Hardware interface standardization (post 1990s)

3.2.3 Cloud-based POS (post 2000s)

4 4.0 Point of Sale machine user

4.1 Retail industry

4.2 Service industry

4.2.1 Hospitality industry

4.2.2 Hair and beauty industry

4.2.3 Restaurant business

4.2.4 Travels and Hotel business

4.3 Jewellers

4.4 Electronics dealers

4.5 Other

5 5.0 Who is provided point of sale?

5.1 Point Of Sale provided banks

5.2 7 reasons to switch to a point-of-sale system

5.3 Benefits of using a POS system

5.4 The Disadvantages of POS.

5.5 SBI finalizes top three candidates for Point of Sale joint venture

5.6 State Bank of India may use POS terminals for utility bill payments

6 6.0 SBI POS details

6.1 SBI POS rates

6.2 Project work

7 RESEARCH METHODOLOGY

7.1 Statement of problem

7.2 Research objective

7.3 Research plan

7.4 Sources of data

7.5 Research design

7.5.1 Problem of statement

7.5.2 Type of Research

7.5.3 Scope of research

7.5.4 Limitations of study

7.5.5 Benefits of study

8 8.0 Data analysis and Interpretation

9 9.0 Conclusion, Finding, Suggestion

9.1 Conclusion

9.2 Finding

9.3 Suggestion

9.4 Questionnaire

9.5 List of Chart

9.6 BIBLOGRAPHY

1. Introduction : company

1.1 Introduction of Banking.

Banking today is not what it was some years back. The basic purpose for which banks came into being was deposit mobilization and credit dispensation, which in a short form can be called 3-6-3 banking. It is not the same any more as the major agenda of the banks today is to multiply profits through an array of services like insurance, mutual fund, wealth management etc. to customers. The growth of financial markets, blurring of product boundaries, new network technologies have brought in enormous opportunities in the banking sector. The key to success is knowledge on the subject and updation of the events in the sector. Living up to the aspirations and requirements of the industry, many Indian Universities have introduced Banking as a subject in the curriculum of management courses at the undergraduate and Postgraduate levels. Business Schools and institutes of academic excellence have evolved exclusive courses on Banking to tap the potential in the field. This book meets the requirements of the subject in all its angles and intends to serve the requirements of management students who would like to make a career in banking and for those in pursuit of promotional avenues within the bank.

1.2 Introduction of SBI (State Bank of India) State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. Government of India nationalised the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country.

SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.

The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

1.3 General information

1.3.1 Objectives of the SBI

1- Accepts deposit 

2- Gives loans and advances 

3- Invests and Borrows 

4- Deals in bill of exchange 

5- Deals in gold and silver 

6- Deals in foreign currencies 

7- Underwrite issues 

8- Form subsidiary 

9- Housing schemes 

10- Provided pos to the merchants

1.3.2 Mission and Vision

Mission. We will be prompt, polite and proactive with our customers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in service to those abroad as much as we do those in India. We will imbibe state of art technology to drive excellence.

Vision

My SBI My customer First My SBI: First in customer satisfaction

1.3.3 Banking and other information

Bankers

State Bank of India

Axis Bank

HDFC Bank

Standard Chartered Bank

Auditors

Contractor Nayak & Kisnadwala

Chartered Accountants

Jash Chambers, 3rd Floor,

7A, Sir P.M.Road, Fort,

Mumbai – 400001

Solicitors

K Ashar & Company

Meadows House,

4th & 5th Floor,

39, Nagindas Master Road,

Fort, Mumbai – 400023

Paras Kuhad & Associates

903, Peninsula Towers,

Peninsula Corporate Park,

Ganpatrao Kadam Marg,

Lower Parel, Mumbai – 400013

Registered Office

6th Floor, The Metropolitan,

Bandra–Kurla Complex,

Bandra (East),

Mumbai - 400051

1.4 History of State Bank of India

The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act, the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI.

SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the

Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces.

1.5. Structure

1.5.1 Current Board of Directors.

As on 14 January 2013, there are fifteen members in the SBI board of directors:-

Pratip Chaudhuri (Chairman)

Hemant G. Contractor (Managing Director)

Diwakar Gupta (Managing Director)

Krishna Kumar (Managing Director)

S. Visvanathan (Managing Director)

S. Venkatachalam (Director)

D. Sundaram (Director)

Parthasarathy Iyengar (Director)

Thomas Mathew (Director)

S.K. Mukherjee (Officer Employee Director)

Rajiv Kumar (Director)

Jyoti Bhushan Mohapatra (Workmen Employee Director)

Deepak Amin (Director)

Harichandra Bahadur Singh (Director)

1.6 International presence.

SBI’s different branches in international level

The Israeli branch of the State Bank of India located in Ramat Gan.

As of 31 March 2012, the bank had 173 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius).

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005.

Main Branch of SBI in Mumbai.

1.7 Associate banks

SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Earlier SBI had seven associate banks, all of which had belonged to princely states until the government nationalised them between October 1959 and May 1960. In tune with the first Five Year Plan, which prioritised the development of

rural India, the government integrated these banks into State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion mark (10 billion long scale). The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

State Bank of India Mumbai LHO.

1.8 Non-banking subsidiaries. :

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

1.9 Other SBI service points. :

SBI has 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group (including associate banks) has about 45,000 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.

2.0 Logo and slogan:

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business.

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US".

2.1 Financial statements

2.1.1 5Years Profit and Loss account

The company declare last quarter result march 2013. The details are as under

Standalone Profit & Loss account

------------------- in Rs. Cr. -------------------

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 119,657.10 106,521.45 81,394.36 70,993.92 63,788.43

Other Income 16,034.84 14,351.45 14,935.09 14,968.15 12,691.35

Total Income 135,691.94 120,872.90 96,329.45 85,962.07 76,479.78

Expenditure

Interest expended 75,325.80 63,230.37 48,867.96 47,322.48 42,915.29

Employee Cost 18,380.90 16,974.04 14,480.17 12,754.65 9,747.31

Selling and Admin Expenses

0.00 15,625.18 12,141.19 7,898.23 5,122.06

Depreciation 1,139.61 1,007.17 990.50 932.66 763.14

Miscellaneous Expenses 26,740.65 12,350.13 12,479.30 7,888.00 8,810.75

Preoperative Exp Capitalised

0.00 0.00 0.00 0.00 0.00

Operating Expenses 29,284.42 37,563.09 31,430.88 24,941.01 18,123.66

Provisions & Contingencies

16,976.74 8,393.43 8,660.28 4,532.53 6,319.60

Total Expenses 121,586.96 109,186.89 88,959.12 76,796.02 67,358.55

  Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

  12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 14,104.98 11,686.01 7,370.35 9,166.05 9,121.23

Extraordionary Items 0.00 21.28 0.00 0.00 0.00

Profit brought forward 0.34 6.05 0.34 0.34 0.34

Total 14,105.32 11,713.34 7,370.69 9,166.39 9,121.57

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 2,838.72 2,348.66 1,905.00 1,904.65 1,841.15

Corporate Dividend Tax 375.97 296.49 246.52 236.76 248.03

Per share data (annualised)

Earning Per Share (Rs) 206.20 174.15 116.07 144.37 143.67

Equity Dividend (%) 415.00 350.00 300.00 300.00 290.00

Book Value (Rs) 1,445.60 1,251.05 1,023.40 1,038.76 912.73

Appropriations

Transfer to Statutory Reserves

10,890.29 3,531.35 2,488.96 6,495.14 6,725.15

Transfer to Other Reserves

0.00 5,536.50 2,729.87 529.50 306.90

Proposed Dividend/Transfer to Govt

3,214.69 2,645.15 2,151.52 2,141.41 2,089.18

Balance c/f to Balance Sheet

0.34 0.34 0.34 0.34 0.34

Total 14,105.32 11,713.34 7,370.69 9,166.39 9,121.57

2.1.2 5 Years Balance sheet.

BalanceSheet - State Bank of India

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 684.03 671.04 635.00 634.88 634.88

Reserves & Surplus 98199.65 83280.16 64351.04 65314.32 57312.82

Net Worth 98883.68 83951.21 64986.04 65949.20 57947.70

Secured Loan 169182.71 127005.57 119568.96 103011.60 53713.68

Unsecured Loan 1202739.57 1043647.36 933932.81 804116.23 742073.13

TOTAL LIABILITIES 1470805.96 1254604.14 1118487.81 973077.03 853734.51

Assets

Gross Block 7005.02 14792.33 13189.28 11831.63 10403.06

(-) Acc. Depreciation .00 9658.46 8757.33 7713.90 6828.65

Net Block 7005.02 5133.87 4431.96 4117.72 3574.41

Capital Work in Progress .00 332.68 332.23 295.18 263.44

Investments 350927.27 312197.61 295600.57 285790.07 275953.96

Inventories .00 .00 .00 .00 .00

Sundry Debtors .00 .00 .00 .00 .00

Cash and Bank 114820.16 97163.16 122874.15 96183.84 104403.80

Loans and Advances 1093508.59 920691.91 800497.29 667026.91 580236.48

Total Current Assets 1208328.75 1017855.07 923371.44 763210.75 684640.28

Current Liabilities 95455.08 80915.09 105248.39 80336.70 110697.57

Provisions .00 .00 .00 .00 .00

Total Current Liabilities 95455.08 80915.09 105248.39 80336.70 110697.57

NET CURRENT ASSETS 1112873.67 936939.98 818123.05 682874.05 573942.70

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 1470805.96 1254604.14 1118487.81 973077.03 853734.51

3.0 Basic details of POS(Point Of Sale Machine)

Point of Sale (also called as POS or Checkout) is the place where a retail transaction is completed. It is the point at which a customer makes a payment to a merchant in exchange for goods or services. At the point of sale the retailer would calculate the amount owed by the customer and provide options for the customer to make

payment. The merchant will also normally issue a receipt for the transaction.

The POS in various retail industries uses customized hardware and software as per their requirements. Retailers may utilize weighing scales, scanners, electronic and manual cash registers, EFTPOS terminals, touch screens and any other wide variety of hardware and software available for use with POS. For example, a grocery or candy store uses a scale at the point of sale, while bars and restaurants use software to customize the item or service sold when a customer has a special meal or drink request.

The modern point of sale is many times called as the Point of Service because it is not just a point of sale but also a point of return or customer order. Additionally it includes advanced features to cater to different functionality, such as inventory management, CRM, financials, warehousing, etc., all built into the POS software. Prior to the modern POS, all of these functions were done independently and required the manual re-keying of information, which can lead to entry errors.

3.1 History Of POS (Point OF Sale)

Early electronic cash registers (ECR) were controlled with proprietary software and were limited in function and communications capability. In August 1973 IBM released the IBM 3650 and 3660 store systems that were, in essence, a mainframe computer used as a store controller that could control up to 128 IBM 3653/3663 point of sale registers. This system was the first commercial use of client-server technology, peer-to-peer communications, local area network (LAN) simultaneous backup, and remote initialization. By mid-1974, it was installed in Pathmark stores in New Jersey and Dillard's department stores.

One of the first microprocessor-controlled cash register systems was built by William Brobeck and Associates in 1974, for McDonald's Restaurants. It used the Intel 8008, a very early microprocessor. Each station in the restaurant had its own device which displayed the entire order for a customer—for example: Vanilla Shake, Large Fries, BigMac—using numeric keys and a button for every menu item. By pressing the [Grill] button, a second or third order could be worked on while the first transaction was in progress. When the customer was ready to pay, the [Total] button would calculate the bill, including sales tax for almost any jurisdiction in the United States. This made it accurate for McDonald's and very convenient for the servers and provided the restaurant owner with a check on the amount that should be in the cash drawers. Up to eight devices were connected to one of two interconnected computers so that printed reports, prices, and taxes could be handled from any desired device by putting it into Manager Mode. In addition to the error-correcting memory, accuracy was enhanced by having three copies of all important data with many numbers stored only as multiples of 3. Should one computer fail, the other could handle the entire store.

ViewTouch POS widget-driven touch screen GUI

In 1986, Gene Mosher introduced the first graphical point of sale software under the ViewTouch trademark on the 16-bit Atari 520ST color computer. It featured a color touchscreen widget-driven interface that allowed configuration of widgets representing menu items without low level programming. The ViewTouch point of sale software was first demonstrated in public at Fall Comdex, 1986, in Las Vegas Nevada to large crowds visiting the Atari Computer booth. This was the first commercially available POS system with a widget-driven color graphic touch screen interface and was installed in several restaurants in the USA and Canada.

3.2 Software details of pos

In the pos machine software is required. In past year details of pos software are as under.

3.2.1 Modern software (post 1990s)

In 1992 Martin Goodwin and Bob Henry created the first point of sale software that could run on the Microsoft Windows platform named IT Retail. Since then a wide range of POS applications have been developed on platforms such as Windows and Unix. The availability of local processing power, local data storage, networking, and graphical user interface made it possible to develop flexible and highly functional POS systems. Cost of such systems has also declined, as all the components can now be purchased off-the-shelf.

The key requirements that must be met by modern POS systems include: high and consistent operating speed, reliability, ease of use, remote supportability, low cost, and rich functionality. Retailers can reasonably expect to acquire such systems (including hardware) for about $4000 US (as of 2009) per checkout lane.

3.2.2 Hardware interface standardization (post 1990s)Vendors and retailers are working to standardize development of computerized POS systems and simplify interconnecting POS devices. Two such initiatives are OPOS and Java POS, both of which conform to the Unified POS standard led by The National Retail Foundation.

OPOS (OLE for POS) was the first commonly adopted standard and was created by Microsoft, NCR Corporation, Epson and Fujitsu-ICL. OPOS is a COM-based interface compatible with all COM-enabled programming languages for Microsoft Windows. OPOS was first released in 1996. Java POS was developed by Sun Microsystems, IBM, and NCR Corporation in 1997 and first released in 1999. Java POS is for Java what OPOS is for Windows, and thus largely platform independent.

There are several communication protocols POS systems use to control peripherals:

Logic Controls

Epson Esc/POS

UTC Standard

UTC Enhanced

AEDEX

ICD 2002

Ultimate

CD 5220

DSP-800

ADM 787/788

HP

There are also nearly as many proprietary protocols as there are companies making POS peripherals. EMAX, used by EMAX International, was a combination of AEDEX and IBM dumb terminal.

Most POS peripherals, such as displays and printers, support several of these command protocols in order to work with many different brands of POS terminals

and computers.

3.2.3 Cloud-based POS (post 2000s)

He advent of cloud computing gave birth to the possibility of POS systems to be deployed as Software as a service, which can be accessed directly from the Internet, using any internet browser. Using the previous advances in the communication protocols for POS's control of hardware, cloud-based POS systems are independent from platform and operating system limitations. Cloud-based POS systems are also created to be compatible with a wide range of POS hardware.

Cloud-based POS systems are different from traditional POS largely because user data, including sales and inventory, are not stored locally, but in a remote server. The POS system is also not run locally, so there is no installation required.

The advantages of a cloud-based POS are instant centralization of data, ability to access data from anywhere there is internet connection, and lower costs. Cloud-based POS also helped expand POS systems to mobile devices.

4.0 Point of Sale machine users.

The pos machine was best facility provided industry to customer. With the help of pos machine the customer direct payment to the merchant, so it is helpful to both party customer and business owner. The followings are main industry use point of sale.

4.1 Retail industry

The retailing industry is one of the predominant users of POS terminals.

A retail point of sale system typically includes a cash register (which in recent times comprises of a computer, monitor, cash drawer, receipt printer, customer display and a barcode scanner) and the majority of retail POS systems also include a debit/credit card reader. It can also include a conveyor belt, weight scale, integrated credit card processing system, a signature capture device and a customer pin pad device. More and more POS monitors use touch-screen technology for ease of use and a computer is built into the monitor chassis for what is referred to as an all-in-one unit. All-in-one POS units liberate counter space for the retailer. The POS system software can typically handle myriad customer based functions such as sales, returns, exchanges, layaways, gift cards, gift registries, customer loyalty programs, promotions, discounts and much more. POS software can also allow for functions such as pre-planned promotional sales, manufacturer coupon validation, foreign currency handling and multiple payment types.

The POS unit handles the sales to the consumer but it is only one part of the entire POS system used in a retail business. "Back-office" computers typically handle other functions of the POS system such as inventory control, purchasing, receiving and transferring of products to and from other locations. Other typical functions of a POS system are to store sales information for enabling customer returns, reporting purposes, sales trends and cost/price/profit analysis. Customer information may be stored for receivables management, marketing purposes and specific buying analysis. Many retail POS systems include an accounting interface that "feeds" sales and cost of goods information to independent accounting applications.

Retail operations such as Hardware stores (Lumber Yards), Electronic stores and so called multifaceted super-stores need specialized additional features compared to other stores. POS software in these cases handle special orders, purchase orders, repair orders, service and rental programs as well as typical point of sale functions. Rugged hardware is required for point-of-sale systems used in outdoor environments. Wireless devices, battery powered devices, all-in-one units, and Internet-ready machines are typical in this industry.

Recently new applications have been introduced, enabling POS transactions to be

conducted using mobile phones and tablets. New entrants include i Connect, Square, Nova Point of Sale, Intuit's GoPayments, NCR Inc.'s Silver platform, Revel

Systems, Erply, ezyMART POS, ShopKeep POS, GoPago, and Foundry Logic's Retail Mobile POS platform.

Mainstays of the retail POS space include; Corner Store POS, Retail Pro, Counter Point, Merchant OS, Celerant and Cam Commerce.

4.2 Service industry

Some service industry are also use pos because it is easy to collecting cash and provided best facility to the customer. The more details are as under.

4.2.1 Hospitality industry

Hospitality point of sales systems are computerized systems incorporating registers, computers and peripheral equipment, usually on a computer network. Like other point of sale systems, these systems keep track of sales, labor and payroll, and can generate records used in accounting and book keeping. They may be accessed remotely by restaurant corporate offices, troubleshooters and other authorized parties.

Point of sales systems have revolutionized the restaurant industry, particularly in the fast food sector. In the most recent technologies, registers are computers, sometimes with touch screens. The registers connect to a server, often referred to as a "store controller" or a "central control unit." Printers and monitors are also found on the network. Additionally, remote servers can connect to store networks and monitor sales and other store data.

Newer, more sophisticated, systems are getting away from the central database "file server" type system and going to what is called a "cluster database". This eliminates any crashing or system downtime that can be associated with the back office file server. This technology allows 100% of the information to not only be stored, but also pulled from the local terminal. Thus eliminating the need to rely on a separate server for the system to operate.

The efficiency of such systems has decreased service times and increased efficiency of orders.

Another innovation in technology for the restaurant industry is Wireless POS. Many restaurants with high volume use wireless handheld POS to collect orders which are sent to a server. The server sends required information to the kitchen in real time. There is a new breed of Wireless POS system that is using iPad from APPLE inc.

4.2.2 Hair and beauty industry

Point of sale systems for the hair and beauty industry has become very popular with the increased use of computers. In order to run a salon efficiently it is essential to retain all client names, appointments, and charges for provided services along with employee schedules and product inventory in a system where reports and receipts

can be generated. The nature of salons and spas can vary greatly depending on the business setup and the products or services being offered. This is why POS comes along with most salon software.

4.2.3 Restaurant business

Restaurant POS refers to point of sale (POS) software that runs on computers, usually touch screen displays. Restaurant POS systems assist businesses to track transactions.

Typical restaurant POS software is able to create and print guest checks, print orders to kitchens and bars for preparation, process credit cards and other payment cards, and run reports. In addition, some systems implement wireless pagers and electronic signature capture devices.

In the fast food industry, displays may be at the front counter, or configured for drive through or walk through cashiering and order taking. Front counter registers take and serve orders at the same terminal, while drive through registers allow orders to be taken at one or more drive through windows, to be cashiered and served at another. In addition to registers, drive through and kitchen displays are used to view orders. Once orders appear they may be deleted or recalled by the touch interface or by bump bars. Drive through systems are often enhanced by the use of drive through wireless (or headset) intercoms.

POS systems are often designed for a variety of clients, and can be programmed by the end users to suit their needs. Some large clients write their own specifications for vendors to implement. In some cases, POS systems are sold and supported by third party distributors, while in other cases they are sold and supported directly by the vendor.

Wireless systems consist of drive though microphones and speakers (often one speaker will serve both purposes), which are wired to a "base station" or "center module." This will, in turn broadcast to headsets. Headsets may be an all-in-one headset or one connected to a belt pack.

4.2.4 Travels and Hotel business

The ravelling service provider are easy to collect the cash and the customer some times not having more money in the pocket so with the help of pos the air service provider or any other travelling agency are easy to swipe the card and collect the money. In the hotel business the timing are more than for collecting cash so the person who having credit or debit card are easy to paid the bill of hotel and the hotel manager was easy to collecting the bill amount.

4.3 Jewellers

Our countries purchaser of gold is highest for other countries. The person who have purchase gold jewellery having more cash as per safety of customer now a day’s point of sale are also helpful to the jewellers.

4.4 Electronics dealers

Now a days new technology impressed to the customer. The company producing LCD TV., LED TV., 3D TV so the customer purchase TV or home theatre system. But the problem is having cash in pocket so the TV dealers are also use point of sale for easy to collecting cash or providing best facility to the customer.

4.5 Other

Now a days all the retail merchant, medicals, provision shop, garment shop, moles, petrol pups all these are having point of sale because easy to collecting cash and safety facility provided to the customer.

5 Who is provided point of sale?

The main question for the merchant who is provided Point Of Sale. The private or public banks are providing point of sale. The merchant open the current account and easy to collect the point of sale.

5.1 Point Of Sale provided banks

Following banks are provided point of sale facilities.

State Bank of India

HDFC bank

AXIS bank

ICICI bank

Central Bank of India

Lakshmi Vilas bank

5.2 7 reasons to switch to a point-of-sale systemIf you're a veteran retailer, you know the problem: Your inventory doesn't match your tallies. Sales are going unrecorded. Your staff is spending far too much time chasing mistakes instead of tending to customers.

Something is seriously wrong, and you're just not sure what the problem is.

These and other snafus suggest that it's time that your business did away with its cash registers and stepped up to a point-of-sale (POS) system, such as Microsoft Dynamics Retail Management System and Microsoft Dynamics Point of Sale (POS) . A POS system is a computer software and hardware network that records sales as they're occurring; it solves a variety of operational and record-keeping headaches.

If you need more proof, here are seven signs that your business could boom with a point-of-sale system.

1. Your "sudden shrink" no longer goes undetected. POS systems such as Retail Management System are designed to immediately record any and all sales. Not only does that mean timely and accurate sales tracking, but a POS system also lets you readily identify inventory levels, particularly when what you have on the books doesn't jibe with actual stock. "You see it with the onset of sudden shrink—when you realize that inventory is missing or your numbers just never seem to match up," says John Rarrick of RBS Inc., a Nyack, N.Y., consulting concern specializing in startups and small businesses. "Almost every modern POS has a receiving and inventory module that, when used properly, can help pinpoint the cause of the shrink."

2. Markdown management is much easier. A common land mine for many small to medium-sized businesses is price reduction—knowing which items have been marked down and recording those discounts accordingly. Rather than wrestling with cash-register receipts at day's end, a POS automates the process of introducing markdowns and, in turn, tracking them accurately. "The trends in POS are not just inventory accuracy but the use of pricing models to allow for markdown management," says Gary Ruffing, senior director of retail services for BBK Ltd., a business advisory firm in Southfield, Mich.

3. Promotions can be tracked more successfully. A similar dynamic holds true with promotions. Whether through coupons, special discounts or other vehicles, promotions can be central to attracting and retaining business. Trouble is, managing and reconciling short-term specials—not to mention pinpointing their impact—can be nigh impossible without the automation and immediacy of a point-of-sale system. "Many small retailers invest in things such as direct home marketing," Rarrick says. "At the end of the promotion, those with manual cash registers are hard pressed to tell you how successful the promotion was. The POS store can pretty much tell you to the penny how they did."

4. You can maintain control in absentia. You may be surprised to discover that you actually run two businesses: one when you're there and its evil twin when you don't happen to be around. Many operations suffer in employee efficiency and customer service when the boss is away. Automating a host of functions via a POS can help boost those areas, no matter where the head honcho happens to be."You simply can't be there all the time," says Jim Melvin, chief executive officer of Siva Corp., a Delray Beach, Fla., company which provides point-of-sale systems to restaurants. "A POS lets you have that important level of control when you're not there."

5. Your prices are consistent from one location to the next. Nothing can prove more embarrassing than having a customer question why one item has one price at one store, yet a different price at another. If your business operates at more than one location, a point-of-sale system ensures pricing consistency.Even better, a POS system automates overall inventory control, helping to keep stocks in proper balance depending on demand and other factors, which can vary from one location to the next. "It really lends itself to a better overall customer experience—the sorts of things a customer expects when he walks through the front door," says Melvin.

6. You get many tools in a single package. Buying business equipment piecemeal can be pricey. If you find your checkbook wearing thin from the expense of software and other gear, a comprehensive point-of-sale system may include them in a single package. "Most POS systems have add-on modules like payroll time clocks and customer preference databases," says Rarrick. "That removes the need for small businesses to invest in separate systems for those purposes."

7. You can make better use of your personnel. Little is more maddening to a business owner than watching his or her staff bogged down with inefficient, unproductive responsibilities, from double-checking inventory disparities to seemingly endless cash-register reconciliation. Perhaps the greatest advantage to a comprehensive point-of-sale network is the freedom it can afford your personnel to devote their energy to what genuinely matters the most: helping customers."A good POS allows you to allocate your human resources to the customer service area of the business," Ruffing says. "That means they no longer have to be counting, calculating, ordering, and checking cash-register accuracy."

5.3 Benefits of using a POS system.

The right Point of Sale system will give you control over many different areas of your business operations increasing efficiency and profitability. A Point of Sale system will streamline business operations, including inventory and vendor management along with streamlining Point of Sale processes. The following overview, categorized by area of operation, highlights some of the typical benefits of using a Point of Sale system.

Inventory: a Point of Sale system allows you to categorize your inventory by a number of fields for easy lookup and sorting of your merchandise. A typical inventory hierarchy would include Store, Dept., Class, Subclass, Item Description, Size, and Color. Most systems also offer extended inventory descriptions to track additional information such as alternate lookup and additional product descriptions. You can quickly search and sort your inventory to track quantity on hand and restock levels for each item in your inventory. In addition you can typically track suppliers, substitutes, aliases, and parent relationships.

Purchasing: a Point of Sale system will help you replenish items efficiently and negotiate lower vendor costs. You can quickly generate purchase orders and add items on the fly. Purchase orders can be created for standard items as well as matrix items (size and color). Purchase orders can be tracked by order date, receive date and cancel date so you can take the appropriate action on your open orders. You will be able view what is on order and backorder at all times and print aging reports for open orders.

Point of Sale: allows you to reduce pricing errors and speed up checkouts. A Point of Sale system enables cashiers to process transactions and serve customers efficiently, and allows managers to maintain tight control. Some of the benefits of using a system include the ability to automatically look up and sell items based on pre-set sales, quantity discount, and preferred price levels. In addition at the Point of Sale you can check availability of items on the fly and be able to support multiple tender transactions, including cash, check and credit card.

Customer Relationship Management (CRM): keep a complete profile of every customer who has shopped in your store. Customer information typically includes demographics, preferences and purchase history. Using CRM features will allow you to target market and send promotions to customer based on purchasing history or other specific customer preferences.

Reports and Analysis: a Point of Sale system will allow you to preview, search and print daily sales reports and journals by register, batch, and receipt number.

You will be able to identify sales trends by item, style, department, and vendor. Review top performer reports for cashier, sales person, and customers. Most

systems will also allow you to export reports directly into Excel, XML, CSV or your E-mail application.

5.4 The Disadvantages of POS.

A point of sale is a system you see when you carry your groceries to the front of the store owner or cashier to pay for them. It is a mechanized system that connects the customer and cashier to the complete system of information, handling the transactions carrying out between the store and customer and keeping a check regarding updates of promotions and pricing. Though a point of sale system offers a lot of advantages, it is vital not to ignore the disadvantages it also carries.

Retailers usually just see the benefits of POS system and adopt it at any cost, however, it is also a fact that everything that is good also carries some side effects, no matter either minor or major. Similar is the case with POS system, it is no doubt highly beneficial especially for the retailers of this era, yet it is also recommended to be aware of its disadvantages so that retailers can tailor their strategies even more effectively. Following are some of the disadvantages which retailers usually overlook.

Web Access is not deprived of cost:

The major reason behind the adoption of a point of sale system is concerned with ability that makes you joining your single register to a bigger network of a lot of information that will otherwise be inconvenient or unavailable. For this cause, a lot of businesses decide to adopt a web-based system instead of a software-based system, since it optimizes this feature of the point of sale system. Nonetheless, this supplementary benefit comes with an extra cost, in that you will require paying for Internet access on registers along with paying a certain monthly fee to your provider.

Updates:

If you are adopting a point of sale system that is software based, you will require continuing revising it with fresh versions from the producer or Software Company. Along with the complications and expenses that come along with all these requirements regarding updates, you might need to spend in hardware updates at the same time. These updates lead to significant ongoing costs for something that is thought to be an investment that carries long-term returns.

Security Risks:

Customers who conduct transactions with the help of their debit cards at retailer’s point of sale stations run the danger of revealing their PINs to some other customers. Most of the systems like this always carry certain measures to conceal the keypad; however, none of these tactics can be said as perfect. In addition, if you possess a

web-based system, you run the normal security and confidentiality risks that usually come along operating business over the Internet. Though most of the providers of point of sale systems offer considerable security defense, but they can never cancel out the security risk totally, and the ease of making your adopted system broadly accessible can come at a definite level of risk.

These are some of the major disadvantages of POS system that compel the retailers to think at least for once before going to adopt this method for their own retail business.

5.5 SBI finalizes top three candidates for Point of Sale joint venture

State Bank of India is planning to install five lakh points of sale (POS) for both credit and debit cards in the country. To pursue this plan it is heading for a joint venture and has finalized the top three candidates for the same. The candidates are Visa, Royal Bank of Scotland (RBS) and Global Payments. Point of sale refers to electronic swipe machines used in retail outlets.

After having broadened its customer base with the introduction of core banking technology, SBI now plans to take the lead in electronic networking as well. The bank with an automated teller machine count of 20,000 has far left behind ICICI Bank in ATMs.

The POS terminals not only increase the acceptance level of the bank's credit card but also increase the revenue of the bank with every transaction they pursue.

With every swipe of card across the machine, the merchant pays a small amount from the transaction to the bank in the form of merchant discount rate. This money is shared by the bank that issues the card and the bank which owns the POS terminal. A small proportion is given to the payments provider, either Visa or MasterCard.

ICICI Bank had the largest network of POS Terminals with over 1.5 lakh machines. It recently diversified its POS network into a separate company where KKR-owned First Data held an 80% stake and the rest remained with ICICI Bank.

Axis Bank has over 1 lakh terminals followed by HDFC Bank, which has around 75,000 POS terminals.

Two recent developments have made POS a big business. Firstly, RBI has said it will allow small cash withdrawals through such POS terminals.

Secondly, it has said it would encourage banking correspondents to increase financial inclusions.

SBI's joint venture is said to be different from that of ICICI as SBI will still be holding the majority stake of 65% in the business.

SBI is likely to seek a brand premium from the partner as it will be sharing its name with the partner.

5.6 State Bank of India may use POS terminals for utility bill payments.

The State Bank of India is evaluating the prospects of utilising the point of sale (POS) terminals installed at merchant establishments to accept remittances towards utility bills.

According to the bank’s Chief General Manager (Corporate Strategy and New Businesses) R. Karthikeyan, the proposed facility will particularly be of use to those not comfortable making payments online.

Even while working towards a string of services on the terminals, the bank is also working on deploying its POS terminals at more commercial establishments. “Right now there are 30,000 POS machines of SBI and we want to take this to one lakh by March-end,” he said. The focus would be on taking the POS terminals across the country and into semi-urban and rural areas as well.

The merchant acquiring business, he said, was important as it could emerge as a gateway bringing more customers into the SBI fold. Nearly 40 per cent (about 12 crore) of the ATM/debit cards issued in the country are of SBI. “We are a new entrant as far as POS terminals are concerned… but the value of our brand is strong and help us expand the network fast,” he said. Towards encouraging the use of its POS terminals, the bank had introduced incentives and loyalty programmes for the merchant establishments, he said.

Though at a nascent stage, the possibilities of using them for a range of services, including for remitting property tax and professional tax, were immense, sources said.

6.0 SBI POS details

Unique Selling Points

• ZERO COST FOR MACHINE.

• FREE MAINTENANCE

• FREE INSTALLATION

• NO RECURRING EXPENDITURE

• NO ANNUAL MAINTENANCE CHARGE

• FREE OF COST TRAINING WILL BE PROVIDED TO MERCHANT

• NO REQUIREMENT OF MINIMUM BUSINESS VOLUME

• NO HIDDEN CHARGES

• CASH BACK CAMPAIGN FOR MERCHANTS FOR “ON US” TRANSACTIONS FROM 01.06.2013 TO 30.09.2013

• LOWEST MERCHANT DISCOUNT RATE (MDR )WITH SPECIAL RATE FOR HOSPITALS/NURSING HOME/DIAGNOSTIC CENTRE AND EDUCATIONAL INSTITUTIONS

• 0% MDR FOR PETROL PUMPS

• 0% MDR FOR ON US TRANSACTIONS FOR PoS IN DEFENCE CANTEEN

• AVAILABLE ON THREE TYPES OF MODEL ON PSTN LINE, DESKTOP GPRS AND PORTABLE GPRS

• MAPPED WITH CURRENT OR CASH CREDIT ACCOUNT

• THE TELEPHONE CHARGES FOR SWIPPING THE CARD ARE LOCAL LAND LINE CHARGES IN CASE OF PSTN LINE

• FOR GPRS MODEL SIM CARD WILL BE PROVIDED BY BANK. MINIMUM CHRGES ARE APPLIED FOR MONTHLY RENTAL AND ONE TIME SECURITY DEPOSIT

• MINIMUM REQUIREMENT AT SITES e.g. ONLY ONE POWER POINT AND A TELEPHONE CONNECTION WITH STD FACILITY IS NEEDED

6.2 SBI POS rates.

STATE BANK OF INDIA - Merchant Acquiring Business (MAB)

NEW RATES FOR MERCHANT DISCOUNT RATE (MDR) w.e.f 1st Sept 2012Particulars MDR for

State Bank (On Us) Debit Cards

MDR for Other Bank (Off Us)Debit Cards

MDR for Credit Cards (Floor rates)

MDR for Foreign cards (facility to be specified)

Transaction amount up to Rs. 2000

0.65% + service tax

0.75% + service tax

1.50% + service tax

2.0% + service tax

Transaction amount above Rs. 2000

0.65% + service tax

1.0% + service tax

1.50% + service tax

2.0% + service tax

(Special concessional rates for Hospitals/Nursing home /diagnostic centers and Educational institutions)

Zero % Merchant Discount Rates (MDR) for Petrol Pump and Zero % MDR for SBI Debit card for Defense Canteen.

(Daily Transaction Statement through e-mail available)SUBJECT TO REVIEW EVERY SIX MONTHS

Three Types of Point of Sales (POS) machines available:1. PSTN : available over Landline Phone – No rental – Local call charges

apply2. GPRS: Working with Sim card (Reliance) – with No call charges

(i) DESKTOP GPRS (requires Electric connection): (ii) PORTABLE GPRS (Battery backup available):

First 48 Months From 49th MonthDesktop GPRS (Rs.)

Portable GPRS (Rs.)

Desktop GPRS (Rs.)

Portable GPRS (Rs.)

Monthly rental (per terminal, including SIM

charges)

220 + service tax

400 + service tax

Actual SIM charges (Presently Rs. 45/- plus service tax)

One time non-refundable security amount (At the time of installation only)

200 400 NA NA

STATE BANK OF INDIA - Merchant Acquiring Business (MAB)

SBI Point Of Sale (POS) machine from the most stable and largest PSU bank. Easy banking along with fast and secure transactions for card payments

Features:Prompt Service, Competitive Rates, Fast e-Connectivity Options, Latest terminals and technology, Current account with all facilities,No hidden charges, Differential rate system,Auto-Batch Closing on 3rd day - so no penalty for open batch.

1. Requirement: Current Account / Cash Credit / Over Draft Account with any Branch of State Bank of India.

How to apply1) A simple application to be filled in2) An agreement to be signed with the Bank.

2. Advantages of installing a SBI POS machine :

SBI has over 40% market share of debit cards and huge customer base with branch network even in remote areas. This greatly increases our potential customers. Over a period of two years the daily average spend on SBI debit cards has gone up from 3.44 crores to 35 crores.

Total Card base in India ( March 11) – 248 million Debit Cards – 228 million (SBI – 91 mn) Credit Cards – 20 million (SBI – 2.5 mn)

i. Cardholder

a.Need not carry cash, which is risky.

b. Maintains higher balances in the account resulting in higher interest on deposits.

c. Saves time and money in visiting bank Branch / ATM to withdraw money and spend the same at merchant outlet, who has to again deposit the same in Bank.

d. The time saved results in lower cost and higher productivity as time saved can be gainfully utilized.

e. Freedom Rewardz (loyalty points).

ii. Merchant

a. Cash handling is avoided.

b. The customers have tendency to higher purchases while using the card than cash thus more sales and higher profits.

c. Additional revenue stream from value added services.

d. The customer stickiness to merchant increases due to the facility.

e. The facility can also has provision for customer loyalty points which are widely used to attract the customer to the outlet repeatedly. For details: visit nearest SBI Branch. For After Sales service call: 1800 425 0727

CASH BACK CAMPAIGN for Merchants FROM 01/06/2013 TO 30/09/2013e-Circular No. CS&NB/CS&NB-MAB/2013-14 Dated 15.05.2013

Monthly Business through SBI Debit Cards Cash Back %

Rs.10,000 up to Rs.2,00,000 1%

Rs.2,00,000 and above 0.5% with minimum of 2000 and a cap of Rs.5,000 per MID

6.2 Project work.

As per the GTU guideline the SIP training timing is 45 to 60 days. I have doing my SIP at SBI. In my training my work is communication to the merchants and given details to the POS (point of sale). How the pos useful to the merchant and customer. If the merchant want to POS open current account for the merchant and provided POS. I have communicate 200 or more than merchant and given details of pos and also provided pos of some merchants. My research work i have fill 200 questionnaire for the merchants and doing my further work related my project.

7 RESEARCH METHODOLOGY

7.1 STATEMENT OF PROBLEM.

Purpose of the research is to awareness of SBI POS to the and if merchant is required POS, open current account of the merchant fill up the application form of pos.

7.2 RESEARCH OBJECTIVE.

Each research study has its own purpose, we may think of following research objectives.

1. Merchant is used POS machine or not.

2. To collect the information of merchant is aware SBI POS machine or not.

3. Given details about SBI POS to the merchant.

4. How many merchants are using other banks POS MACHINE?

5. Reasons for not having SBI POS machine in shop.

6. How many merchants are interested to install SBI pos?

7. Study the behaviour of merchants.

8. Study the behaviour of merchants regarding bank facilities.

9. Study the merchant feedback using SBI POS.

7.3 RESEARCH PLAN

A.) Sampling Unit. : The merchants of Surat

B.) Sample size. : 200

C.)Method of selection. : Simple random sampling method

D.) Research Instrument. : Questionnaire

E.)Target area. : Surat

7.4 SOURCES OF DATA

The task of collection begins after a research problem has been define and research design chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind to types of data viz.

(1) Primary

(2) Secondary

1. Primary Data:

The data, which is collected directly from the respondents to the base of knowledge and belief of the research, are called primary data. The normal procedure is to fill questionnaire from the employees of the company.

So far as our research is concerned, primary data is the main source of information. We have collected data from the questionnaires.

2. Secondary Data:

Secondary data are those which have all ready been collected by someone else and which have already been pass process. For e.g. published data like in books, magazine, newspapers, internet, past report, public report etc.

7.5 Research design

7.5.1 Problem statement.

Purpose of the research is awareness SBI POS of merchant and how many merchant use POS and if any merchant is required POS so collect the document and provided SBI POS.

7.5.2 Type of research.

We have done this study as Descriptive Research.

7.5.3 Scope of Research

The research that is being conducted by us will be following respect.

1. This will help to the bank how many merchant using POS.

2. This will help to the bank how many merchant aware of SBI POS.

3. The bank will know how many merchant interested to install SBI POS.

4. Which type of payment mode using the merchant?

5. Study the behaviour of merchant regarding installation POS.

7.5.4 Limitations of the study

The report might suffer from following limitations;

1. Merchant using only cash transaction.

Most of the merchant doing its business only cash transaction, so he was not interested to install POS

2. MDR rate is higher.

The bank was taken charge for swiping card. This charge is paid by the merchant. The MDR rate is higher (1%) and merchant are not ready to pay this charge.

3. Merchant not satisfied bank services.

Most of the merchant was not satisfied the bank services so he was not install SBI POS.

4. Time limit.

In less time contact more merchant and given details regarding SBI POS

5. Merchant already install other bank POS.

As per my survey most of the merchant has already install other bank POS so we are not doing any further research.

7.5.5 Benefits of the study.

Following are the main benefits of the research.

As a student the report helps us to learn the practical aspects of the bank. The report also help to the bank know customer/merchant demand relating

banking facilities. The report also helpful how the different banks will charge different MDR

rates. The government make efforts for maximising plastic money usage. It helps to the merchant for easy cash collection from the customers. It helps to the bank how many merchant are ready to install POS machine.

8.0 Data analysis and interpretation

There are following analysis and interpretation from the collected data which are very helpful for taking the decision. Here we have filled 100 questionnaires from retail merchant, garment store, medical shops, electronic dealers and following is the interpretation of these questionnaires.

Obj.1 By which mode you accept payment from customer?

By cash 67

By cash, credit card, Debit card 30

By cash, credit card, Debit card, Cheque 03

Total 100

CASH67%

CASH,CREDIT CARD,DEBIT

CARD30%

CASH,CREDITCARD,DEBITCARD,CHECK3%

PAYMENT MODE

Interpretation. :

Here we can show the survey of 200 merchant, most of the merchant adopt only cash transaction. Because the cash are easy to collect and the merchant are not going to the bank or ATM for withdraw cash for sale the material credit or debit card.

Obj.2 Do you have Landline telephone connection?

Yes 78

No 22

Total 100

YES78%

NO22%

Landline connection

Interpretation. :

The POS machine is work basis on landline connection so as per survey most of the merchant are having landline connection. If the merchant having landline connection the bank was install free cost of machine, and the merchant not having landline connection the bank was given GPRS POS, the charges of GPRS machine is 250 per month and this charge will not comfortable to the merchant.

Obj.3 How many merchant are use POS machine.

HDFC 15

AXIS 5

SBI 3

OTHER BANKS POS 4

TOTAL 27

HDFC56%

AXIS19%

SBI11%

OTHER BANK15%

WHICH BANKS MERCHANT USE POS MACHINE

Interpretation.

Here we can show most of the merchant install HDFC banks pos. The SBI try to provide maximum pos to the merchant. The SBI was open maximum current account and provided POS facilities to the merchant.

Obj.4 How long have you had your current POS?

Less than 1 year 21

1 to 5 year 59

More than 5 year 20

Total 100

LESS THAN 1 YEAR21%

1 TO 5 YEAR59%

MORE TAHN 5 YEAR20%

USING POS MACHINE (TIME)

Interpretation.

Here we can show the most of the merchant aware or use POS machine 1 to 5 year. As per the research most of the merchant was not aware SBI POS facility and the bank was try to achieve the target for provided maximum SBI POS to the merchant.

Obj.5 What are the reason for not having SBI POS machine in our shop?

Having other bank’s machine 27

Transaction fees 03

Customer’s insistence to use cash 45

Other 25

Total 100

HAVING OTHER BANK MACHINE

27%

TRANSECTION FEES3%

CUSTOMER'S INSISTENCE

TO USE CASH45%

OTHER25%

REASON FOR NOT HAVING SBI POS

Interpretation. :

Hear we can show what reason for not having SBI POS.(1) Most of the merchant use insistence to cash, (2)some of the merchant already install other bank POS, (3)Some of the merchant think the transaction fees are higher and in (4)other part the merchant not having landline connection, not complete document for open current account, or some of the merchant was not satisfied the SBI bank services.

Obj.6 Over all information collecting of POS.

HDFC POS 15

AXIS POS 05

SBI POS 03

OTHER BANKS POS 04

INSTRESTED MERCHANT 20

NOT INTRSTED MERCHANT 53

TOTAL 100

HDFC POS15%

AXIS POS5%

SBI POS3%

OTHER BANKS POS4%INTRESTED

MERCHANT20%

NOT INT-RESTED

MERCHANT53%

COLLECTING INFORMATION OF POS

Interpretation.

Here we can show that overall position of the market. The SBI was convince to the merchant and 20 % merchant was ready to install SBI POS. Most of the merchant was paid high rate of MDR. The SBI MDR rate is lowest comparison to other banks so some of the merchant remove other banks POS and ready to install SBI POS. The bank also try to convince not interested merchant and install SBI POS. This information are collecting my research of 100 questionnaire.

9.0 Conclusion, finding and Suggestion

9.1 Conclusion

I hereby conclude my project with the nice memory of internship work in STATE BANK OF INDIA. In the STATE BANK OF INDIA I am contact to the different merchant and try to understanding his behaviour regarding banking facility and how the POS helpful to increase selling.

The STATE BANK OF INDIA is one of the largest government bank. In Indian banking sector the STATE BANK OF INDIA cover 45% market. The bank try to provide maximum facility to its customer. In my research work and contect to the merchant most of the merchant not aware SBI POS. So we are given details our POS machine and also said to the merchant our banks POS MDR rates is lowest to other banks MDR rates.

In my project work I also contact different branch manager because open current account in merchants shop’s nearest branch. Because the merchant easy to going nearness branch and withdraw the cash. The Banking industry is a big industry and in my project work I try to understand banking work it is very hard

9.2 Finding.

The STATE BANK OF INDIA was largest bank and provided all the facility. The banks cash collection and paid facilities transaction is big to other banks

Some merchant not satisfied the STATE BANK OF INDIA facility because he standing in line for deposit amount in bank.

In my project work merchant want some facility like ATM CARD, and CASH COLLECTION because some Jewellers transaction and selling is in Lacks. He was not free to going in bank and deposit the amount.

As per my opinion the STATE BANK OF INDIA was late to launch POS facility because some Private Sector bank like HDFC and AXIS bank already provided this type of facility.

In my project i also learn the STATE BANK OF INDIA was very oldest bank and it was provided all types of facility in rural area or urban area like education loan, loan facility provided to the farmer, housing loan, cash credit provided to the merchant etc.

In my training duration I understanding merchant behaviour and convince to install SBI POS and also said it is helpful and easy for collecting cash from customers.+

I am going to the merchants shop and aware SBI POS but some merchant already having other banks POS. The merchant said to us for paid MDR rates for having his POS but some of the merchant think he paid high MDR and removes other bank POS and install SBI POS.

The different branch rules and regulation was different. Some branch open account as per the circular and some branch not open the account so I have not given proper answer to the merchant why the account was not open.

In my summer internship i have successfully open 8 current accounts and provided SBI POS terminal.

I have also learn which are the documents are required for opening current accounts.

9.3 Suggestion

STATE BANK OF INDIA is one of the largest bank and provided maximum facility to its customer. But in branch staff was not carefully answer given to his customer and customer not having any type of facility want to government bank.

In branch staff is less and customer wait to deposit amount so the customer was not open account in bank and not having any type of facility.

In my work I know how to open current account and which document is required for opening current account and i have also one circular which document is required but the branch manager was not open account and having more document and not open the account.

The different branch rules and regulation was different. As per my opinion the branch was not open the account as per the required document. So I think our branch was not work properly and not open the account collecting document as per required in SBI circular.

The account opener was not proper open account and not dispatches ATM card and CHEQUE BOOK. As per my opinion the worker was not doing his work properly.

In my work I show the work is more and time is less. In less timing open the account, deposit collection, Fixed deposit, Home loan and other work doing regularly. As per my suggestion given proper guidance to the customer and fulfil customers demand.

The customer want proper answer his question and solution his problem. The bank was given proper answer to the customers question and solving his problem.

In my training duration i have show the SBI not having full staff so the customer was waiting for deposit money and taking other facility.

Sometimes the bank staff was not given answer properly to the customer and given not properly guidance.

9.4 QUESTIONNAIRE

ACCEPTABILTY OF SBI “POS” FOR MERCHANTS AQURING BUSINESS

GENERAL INFORMATION

Name of business unit: _____________________________________________

Name of respondent: _______________________________________________

Address:_______________________________________________________

Contact no.:_______________________

QUESTIONNAIRE

1. By which mode you accept payment from customer?

By cash by check

By debit card by credit card

Other (pl. specify_________________)

2. Do you have SBI current account?

Yes No

3. Do you have Landline telephone connection?

Yes No

4. Do you have SBI POS machine?

Yes No

IF YES, then

5. How long have you had your current SBI POS?

Less than 6 months between 6 to 12 month s More than 12 months

6. Which of the following factor is motivating you to adopt SBI POS system? [Check all that apply]

Additional payment method

Simplicity of usage

Easiness of cash handling

To avoid robberies and thefts

Faster payment processing time

Others

7. What is your perception about following factor in respect of SBI POS?? [Check all that apply]

Excellent good fair poor

(>80%) (60-80%) (40-60%) (<40%)

Training on usage Ο Ο Ο Ο

Transaction time Ο Ο Ο Ο

Connectivity/network Ο Ο Ο Ο

Technical solution Ο Ο Ο Ο

Accessing to funds Ο Ο Ο Ο

IF NOT, then

8. Which bank’s POS machine are you using?

HDFC ICICI

AXIS OTHER (pl.specify______________)

9. How long have you had your current POS?

Less than 1 year 1 to 5 year More than 5 year

10. Are you aware of this SBI POS terminal?

Yes No

11. How you came to know about this SBI POS machine?

Internet Poster

Bank representative other (pl. specify______________)

12. What are the reasons for not having SBI POS machine in our shop? [Check all that apply]

Having other bank’s machine

Difficulty in usage

Transaction fees

Customer’s insistence to use cash

Other

13. Would you recommend SBI POS to other?

Yes No

14. Any other feedback you want to give?

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9.5 LIST OF CHART

Sr. No. Particulars Page No.

1 CHART No.1 49

2 CHART No.2 50

3 CHART No.3 51

4 CHART No.4 52

5 CHART No.5 53

6 CHART No.6 54

9.6 BIBLOGRAPHY

Donald R. Cooper, Pamela s. schindler, Business Research Methods, 9th addition

Web-sites Surfed:

WWW.SBI.CO.IN WWW.SBIWIKIPIDIA.COM WWW.POSWIKIPIDIA.COM