A

DISSERTATION REPORT

ON

A STUDY OF CUSTOMER’S SATISFACTION TOWARDS RUPAY CARDS

(A COMPARATIVE STUDY OF SBI & HDFC BANK IN RUPNAGAR)

Punjab Technical University, Jalandhar (India)

In fulfillment of the requirements of the degree of

Master of Business Administration (MBA)

ByJasmeen ShergillRoll No. 1432960

Institute of Management StudiesBhaddal Technical Campus, Ropar.

DECLERATION

I, Jasmeen shergill hereby declare that the dissertation report titled “A Study Of Customer’s Satisfaction Towards Rupay Cards (A Comparative Study Of SBI & HDFC Bank In Rupnagar )” assign to me as per the requirement to the partial fulfillment of Master of Business Administration degree from “IMS BHADDAL” affiliated to Punjab Technical University, Jallandar is the original work done by me and the information provided in this study is authentic to best of the knowledge.

This study has not been submitted to any other institution or university for the award of any other degree

Name of Guide Name of Student(Ms. Ramandeep Kaur) (Jasmeen shergill)

ACKNOWLEDGEMENT

Management is a profession where in no work can be accomplished without the help of a large number of people be it your superiors or subordinates. A good manager is the one who knows how to get the work accomplished with the help of colleagues. As future managers we are taught to practice such behavior at every step.

As a requirement for 2 year full time MBA course, I fell greatly honored for having done my dissertation report “A Study Of Customer’s Satisfaction Towards Rupay Cards (A ComparativeStudy Of SBI & HDFC Bank In Rupnagar)”

I am also thankful to my advisory Ms. Ramandeep kaur (Facility of MBA department of IMS BHADDAL) and all the faculty members to provide this opportunity to get familiar and learn practically.

Last but not least I am thankful to all those people who help me directly or indirectly by providing their valuable suggestions and cooperation.

I also thank my parents and my friends for their constant support and love.

With sincere thanks

JASMEEN SHERGILL

PREFACE

“The study of “A Study Of Customer’s Satisfaction Towards Rupay Cards (A Comparative Study Of SBI & HDFC Bank In Rupnagar)” as a part of curriculum, every student studying MBA has to undertake A dissertation report on a particular subject assigned to him/her.

Accordingly, I have been assigned the project work on the study of a Comparative study of customer’s satisfaction towards Rupay cards of HDFC and SBI ( A study of bank in Rupnagar).

“A Study Of Customer’s Satisfaction Towards Rupay Cards (A Comparative Study Of SBI &HDFC Bank In Rupnagar)”

The various information regarding “A Comparative Study Of Customer’s Satisfaction” Such as classification, determinants, sources have been discussed relating to HDFC AND SBI.

The present study was undertaken to know the preference of the customers towards HDFC Bank and State Bank of India (SBI). The main problem of the customers is they are not well aware of the services provided by their banks. The study also force on the customer perception that how the banking service can be improved. In our study we have used both primary sources of data as well as secondary sources of data. During project we came to know that both the banks are highly preferred by the customers but their preference is different up to some extent towards the service of these banks..

At HDFC and SBI. A Comparative Study Of Customer’s Satisfaction has shown increase in the period of study. This shown customer’s satisfaction is managed effectively and the other entiredepartment is working in perfect co-ordination to ensure the progress of hdfc and sbi banks. , but I have given some suggestions conclusions o the basis of my dissertation report .

INDEX

S.N0 TABLE OF CONTENTS PAGE NO

1DECLERATION

2ACKNOWLEDGEMENT

3PREFACE

4INTRODUCTION 6

5LITRATURE REVIEW 7-8

6TOPIC PROFILE 9-25

7OBJECTIVE OF STUDY 26

8RESEARCH METHODOLOGY 27

9FINDINGS 40

10LIMITATION 41

11CONCLUSION 42

12BIBLIOGHAPHY 43

13QUESTIONNAIRE 44-45

1. INTRODUCTION

RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India’s desire to have adomestic, open loop, and multilateral system of payments in India. RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa in India. NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.

Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The compare level of customer satisfaction toward HDFC andSBI banks is determined not only by the quality and type of customer experience but also by the customer’s expectations.

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India Sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian bank". They realized that only a single-minded focus on product quality and service excellence would help them to get there.

HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial bank of india was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2006 was up 30.8% to Rs 870.8 crores.

2. LITERATURE REVIEW

1.GarimaChaudhary (2014)1 examinedin his study on a Performance Comparison of Private Sector Banks with the Public Sector Banks in India:As discussed above, it has been witnessed that the major area of concern for any bank is the customer service and customer satisfaction, thus just like the private sector banks, it is high time that the public sector banks also start concentrating more on the customers and the services provided to them. Top most rank held by a private bank is a clear indicator of the better performance of the private banks due to their higher concern towards customer feedback, their efficient management and thus yielding to higher productivity and networks throughout India. To strive the cut throat competition given to the public sector banks by the private sector banks, the public sector will have to pull up their shoes to be at the better half part of the race else the time is very near which can make these public sector banks just a memory or a history for everyone.

2.Denise K. Conroy(2013)2stated in his study titled (Customer satisfaction measures in the public sector: what do they tell us?) attempts to devise customer satisfaction measures according to him there are a number of factors which can affect the interpretation of results - the nature of the customer, service provision, service quality and, for the public

sector, the extent to which consumer sovereignty exists. Resources may be better directed towards setting and maintaining high levels of standard of service. This study addresses the difficulties and highlights the complex nature of a customer or service beneficiary who can be, at the same time, a taxpayer, voter, recipient of financial benefits, with expectations of the public sector and its delivery agent, yet cannot choose another provider.

3. dr. snehalkumar h mistry (2013)3Stated in his study on a measuring customer satisfaction in banking sector with special reference to banks of Surat city :With the economic growth of country is on accelerating mode, role of banking industry is alsoimportant in this growth. With the expansion of banking services to peoples excluded frombanking services to large corporate searching fund for their activities, makes the importance ofbanking services. New technologies are being introduced and there is always a fear of economicuncertainties. Fierce competition, more demanding customers and the changing climate havepresented an unparalleled set of challenges (Lovelock, 2001) for banks in the country. Therefore,customer satisfaction is the key for many banks to survive in competition. The purpose of thispaper is to identify the factors affecting customer satisfaction in Banks and analyze their effectson the level of customer satisfaction for attract the customers. The dimensions Reliability, Responsiveness and Assurance are found to be the most vital and strategic determinants of service quality and customer satisfaction for both public and private sector banks. If banks want to sustain customers on a long term basis, bankers should work towards 100% customer satisfaction that automatically foster customer delight.

4. Amruth Raj Nippatlapalli (2013)4stated in his study on A Study On Customer Satisfaction Of Commercial Banks:Case Study On State Bank Of India : Some light was shed on some negative factors also like creating an awareness on online transactions, interest

rates on loans, A.T.M. facilities etc.,That’s why Some suggestion were provided to the management like concentrating on Online services, solving banking problem with a quick time and promote loan facilities like industrial,business,agriculture,individual loans etc, with an attracting advertisements.

5. Dr. PriyaAnandIrabatti (2013)5statedin his study on a Customer Satisfaction of Online Banking in SBI and ICICI - A Comparative Study in Pune City :The internet banking has been growing rapidly in India. The growth in recent year attracts many banks internet services, the competition resulted into benefit to the customer. Within Pune city, due to 3. industrial base and educational institutes, majority of customers are using internet

banking. These customers are from service class. ICICI is the pioneer bank in India.4.5. Therefore ICICI dominates in majority of the quality dimension. However in case of

quality dimension of ‘Privacy of Information’, it seems that people of India still trust6.7. public sector bank, ie SBI bank. The difference in service quality arises mainly because

of skilled human resource and culture of bank. ICICI has attracted young and efficient staff for the internet operations, while SBI still suffers due to the rigid mentality of the old employees. However in last few years, SBI came out as leading Public Sector bank providing online services to customers.

3.TOPIC PROFILE

RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India’s desire to have adomestic, open loop, and multilateral system of payments in India. RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa in India. NPCI maintains ties with Discover Financial to enable the card scheme to gain international acceptance.

BACKGROUND

The IndiaPay scheme was conceived by the National Payments Corporation of India as an alternative to the MasterCard and Visa card schemes, and to consolidate and integrate various payment systems in India. It was renamed to RuPay to avoid naming conflicts with other financial institutions using the same name.[6] The RuPay card was launched on 26 March2012. NPCI entered into a strategic partnership with Discover Financial Services (DFS) forRuPay Card, enabling the acceptance of RuPay Global Cards on Discover’s global payment network outside of India.

On 8 May 2014, RuPay has been dedicated to India by President of India, Pranab Mukherjee at RashtrapatiBhavan, New Delhi.

ACCEPTANCE

RuPay cards are accepted at all automated teller machines (ATMs) across India under National Financial Switch, and under the NPCI's agreement with DFS, RuPay cards are accepted on the international Discover network. According to the data published by National Payments Corporation of India, there are around 145,270 ATMs and more than 875,000 point of sale (PoS) terminals in India under the RuPay platform. In addition to the ATMs and PoS terminals, RuPay cards are accepted online on 10,000 e-commerce websites. with the same PIN which they use for ATM transactions.

RuPay cards are accepted at all PoS terminals in India. To enable this, RuPay has certified 25 major banks in India to accept the RuPay card at their respective PoS terminals located at different merchant locations.

ISSUERS

Banks in India are authorized to issue RuPay debit cards to their customers for use at ATMs, PoS terminals, and e-commerce websites. About 240 banks, including all major public sector banks,currently issue RuPay cards to their customers, RuPay cards are also issued at about 200 cooperative and rural banks to promote financial inclusion.

RUPAY EMV

NPCI has rolled out its chip card for high security transactions using EMV (Europay, MasterCard and Visa) chip technology, which is a global standard for debit and credit cards. RuPay chip cards have an embedded microprocessor circuit containing information about the card holder and because transactions are PIN-based rather than signature-based.

RUPAY FOR FARMERS

RuPay also provides a unified "Kisan Card", issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and PoS terminals.

PUNGRAIN (Punjab Grains Procurement Corporation Ltd), pays commission agents through the RuPay Debit Card, and developed a commission agents network called the KisanArhtia Information and Remittance Online Network (KAIRON) with the help of the National Payments Corporation of India.

Kotak Mahindra Bank in partnership with RuPay rolled out an initiative for financial inclusion, where the dairy farmers across 75 cooperative societies of AMUL in regions of Burdwan and Hooghly of West Bengal will be able to get their payments directly into their account on the same day of sale of milk.

The same model is planned to be adopted in the state of Gujarat where 1200 cooperative societies comprising over 300,000 dairy farmers will be the part of the programme.

HISTORY

President of India on 8 May 2014 launched Rupay, Indigenous Card payment System at RashtrapatiBhawan in Delhi. RuPay is the coinage of two terms Rupee and Payment.

Reserve Bank of India (RBI) envisioned the need for such an indigenously managed service in 2005. National Payments Corporation of India (NPCL) developed the Rupay platform.

Rupay is the seventh card payment system in the world after Visa, MasterCard, American Express, Discover, Diners Club, and JCB.

Features of RuPay

It can be used at ATMs, Points of sale and also for online purchases.

Rupay card will be use with a PIN. It is possible to withdraw 25000 rupees using the card. Up to 50000 rupees can be spent at Point of sale terminals.

The variant of Rupay card is Kisan Card which is issued by 43 Public Sector Banks (PSBs).

RuPay Scheme provide flexibility to card issuing banks to issue special purpose cards like Kisan Cards, Milk Procurement Cards, Grain Procurement Cards and Financial Inclusion Cards.

The user of Rupay will need to pay at least 40 percent fewer charges for each transaction clearing and settlements when compared to other international platforms.

Expansion of RuPay

The total number of banks issuing RuPay cards is now more than 250 and the card base as on April 2014 was at 20 million plus. More than 150 cooperative banks and the regional rural banks (RRBs) have also issued RuPay ATM card.

Government sector banks already set up 25331 ATMs in which Rupay can be used. In the present financial year 2014-15, another 9000 ATMs will be set up. These cards can be used in more than 1.6 lakh ATMs and 95% of POS terminals and almost all e-com merchants.

Currently, over 12 per cent of GDP worth cash and coins are in circulation which is quiet high.

Benefits of RuPay Card

The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience.

Lower cost and affordability

Customized product offering

Protection of information related to Indian consumers

Transaction and customer data related to RuPay card transactions will reside in India

Provide electronic product options to untapped/unexplored consumer segment

Inter-operability between payment channels and products

Rupay card also offer facilities such as personal accident insurance and permanent disability cover to the card holder.

Soon, it will be possible to use Rupay in foreign countries as the company is looking ahead with Discover Financial Services of US for Western world and JCB of Japan for Eastern world.

RuPay plans in India ( HDFC& SBI Bank)

This is how RuPay plans to battle with Visa and MasterCard The National Payment Corporation of India (NPCI) has charted out a three year growth plan to expand base of its newly launched first ever indigenous payment gateway - Rupay. This in turn, is likely to give a good run for money to the multinational biggies like Visa or MasterCard. Saikat Das Moneycontrol.com The National Payment Corporation of India (NPCI) has charted out a three year growth plan to expand base of its newly launched first-ever indigenous payment gateway - Rupay. This in turn, is likely to give a good run for money to the multinational biggies like Visa or MasterCard. It now plans to use its just-launched debit cards for online transactions. RuPay market share is currently not so significant. However, our growth plan will make it a major rival force to other two existing players in next three-five years, A P Hota, Chief Executive Officer told Moneycontrol.com. We have crossed initial two levels of growth for RuPay. In September, we will add internet acceptability to our existing RuPay debit card. We have already closed a deal with a US based IT-solution provider. Later in March 2013, we will issue RuPay-enabled international debit cards. Finally, we will launch RuPay credit cards in March, 2015, said Hota. NPCI, promoted by 10 banks under the aegis of Indian Banks Association (IBA) had introduced RuPay enabled ATM cards in June, 2011. Two lakh ATM cards are already in the market. On March 26, 2012 it launched debit cards, which can be used in ATMs and different point of sales (PoS). So far, four banks including Union Bank of India, Bank of India, State Bank of India and Axis Bank have joined the network of RuPay debit cards. This means, a customer of any of those banks can use such debit cards. NPCI, according to Hota, is in talks with ICICI Bank and HDFC Bank , the lenders with majority of PoS terminals. Together these two entities own more than half of India's 6 lakh total PoS terminals. At present, RuPay is accepted in 2.10 lakh PoS terminals enabled by Axis Bank and SBI . Such terminals are kept in different merchant outlets wherein you can swipe your debit or credit card. Both ICICI Bank and HDFC Bank are in the process of rebuilding the system. They have indicated joining the network in July. So, RuPay card's acceptance in all 6 lakh terminals is a time-taking affair,Hota said. So, what lure banks toRuPay? Answer: It is cost effective. Banks have to pay less to the payment gateway provider. For example, banks have to pay nearly Rs 2 for a customer’s transaction size of Rs 1,600 inRuPay network while the same is around Rs 2.80 with Visa or MasterCard. Secondly, there is no entry fee for banks to enter RuPay network while lenders would have to pay around Rs 25 lakh each in case of other two providers. Finally, banks need not pay a minimum quarterly fee in the RuPay network. However, the same fee would be in the range of Rs 10-30 lakh for other two major gateways. Moreover, RuPay helps in financial inclusion as many co-operative banks and regional rural banks (RRBs) are included in its network. RuPay has just issued the debit card. They will have to build the customer base on this. We are looking at all options to join any payment network. Once the Rupays commercial operation get fully functional, we will be able to compare the cost structure of different gateways, said a retail head of a large private sector bank, who does not wish to be named. saikat.das@network18online.com ICICI Bank stock price On April 30, 2015, ICICI Bank closed at Rs 331.25, up Rs 1.10, or 0.33 percent. The 52-week high of the share was Rs 393.30 and the 52-week low was Rs 247.00. The company's trailing 12-month (TTM) EPS was at Rs 19.27 per share as per the quarter ended March 2015. The stock's price-to-earnings (P/E) ratio was 17.19. The latest book value of the company is Rs 126.23 per

share. At current value, the price-to-book

How do I use the RuPay Premium Debit Card?

Your HDFC Bank RuPay Premium Debit Card gives you access to your HDFC Bank Account at the following locations:

At Merchant Outlets for Shopping ?

RuPay Premium Debit Cards can be used at ATMs, merchant outlets and websites in India

only Effective 1st December, 2013, as per RBI mandate you need to complete the Point-of-

Sale transaction at merchant location using your ATM PIN.

Effective 1st December 2013, transaction at merchant outlet will be declined if wrong/NO PIN entered.

This Debit Card is enabled for domestic transactions only i.e. for shopping at Merchant outlet, domestic online websites and Cash withdrawals at domestic ATMs.

Present your Card to the merchant after selecting your purchases. The merchant will swipe the Card through the electronic terminal and enter the amount of

purchase. On approval, the terminal will print out a transaction slip with all the details of the

purchases. Check the slip and sign at the appropriate place. Your account with HDFC Bank will be debited online for the amount of your purchase

(Subject to availability of funds in your account). The merchant will return a copy of the transaction slip and your Card. Please ensure that

you have received your own CardFor online shopping with your RuPay Premium Debit Card.

You can shop online using your HDFC Bank RuPay Premium Debit Card by using RuPay Premium PaySecure Service. Click Here for steps.

Simple Checkout Process

Select the goods and services from the merchant store/website and proceed to the payment pageEnter your HDFC Bank Debit Card Number and the online store will connect you with HDFC Bank, to check whether your Card is secured with RuPay Premium PaySecure Service.

In case your Card is not registered, HDFC Bank initiates a RuPay Premium PaySecure Service pop-up window on your computer screen and registration happens during the transaction itself. For subsequent transactions after registration, HDFC Bank initiates a pop-up window on your computer screen that includes your personal message.

Look for and confirm your personal message, then enter your password. HDFC Bank will then confirm your identity to the merchant at ATMs:

At HDFC Bank ATMs you can avail the following services:

Account Selection Cash Withdrawal/Balance Enquiry Cheque/Cash Deposit Mini Statement of Accounts Account Statement/Cheque book Request Funds Transfer between your own Accounts PIN Change BillPay

At other banks’ ATMs, you can avail: Cash Withdrawal Balance Enquiry

Who's eligible for the RuPay Premium Debit Card? Both Residents and NREs can apply. Resident Indians should hold one of the following: Salary Account Savings Account Current Account

How do I apply for RuPay Premium Debit Card?Get details on eligibility criteria & documents required for RuPay Premium Debit Card.

Do you already have a HDFC Bank Account?All you need to do is download the application form, print it, and fill in your details. Then drop it off at your local HDFC Bank branch. We will take care of the rest, and send the card to your mailing address.

What if I don’t have a HDFC Bank Account?Download the Account Opening form, print it, and enter your information. This form will include the EasyShop Debit Card application – there’s no need to fill two forms. Take the submission to your closest HDFC Bank branch and we’ll complete the process.

Can I use the RuPay Premium Debit Card to pay online?Currently your RuPay Premium Debit Card can be used to make purchases from Domestic online merchants who have the RuPayPaySecure certification displayed on their website.

Where can the RuPay Premium Debit Card be used?RuPay Premium Debit Card can only be used domestically, which is, at ATMs, merchant outlets and websites in India only.

For online transactions, is there a need to create a new password for RuPay Premium Debit Card with RuPayPaySecure?No, there is no need of a password with RuPayPaySecure and the ATM PIN is all a customer needs to have. The authentication requires other credentials like image selection and pass phrase over and above the ATM PIN. Please refer the section "How do I use the RuPay Premium Debit During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

At Merchant Outlets for Shopping ?

RuPay Premium Debit Cards can be used at ATMs, merchant outlets and websites in India

only Effective 1st December, 2013, as per RBI mandate you need to complete the Point-of-

Sale transaction at merchant location using your ATM PIN.

Effective 1st December 2013, transaction at merchant outlet will be declined if wrong/NO PIN entered.

This Debit Card is enabled for domestic transactions only i.e. for shopping at Merchant outlet, domestic online websites and Cash withdrawals at domestic ATMs.

Present your Card to the merchant after selecting your purchases. The merchant will swipe the Card through the electronic terminal and enter the amount of

purchase. On approval, the terminal will print out a transaction slip with all the details of the

purchases. Check the slip and sign at the appropriate place. Your account with HDFC Bank will be debited online for the amount of your purchase

(Subject to availability of funds in your account). The merchant will return a copy of the transaction slip and your Card. Please ensure that

you have received your own CardFor online shopping with your RuPay Premium Debit Card.

You can shop online using your HDFC Bank RuPay Premium Debit Card by using RuPay Premium PaySecure Service. Click Here for steps.

Simple Checkout Process

Select the goods and services from the merchant store/website and proceed to the payment pageEnter your HDFC Bank Debit Card Number and the online store will connect you with HDFC Bank, to check whether your Card is secured with RuPay Premium PaySecure Service.

In case your Card is not registered, HDFC Bank initiates a RuPay Premium PaySecure Service pop-up window on your computer screen and registration happens during the transaction itself. For subsequent transactions after registration, HDFC Bank initiates a pop-up window on your computer screen that includes your personal message.

Look for and confirm your personal message, then enter your password. HDFC Bank will then confirm your identity to the merchant at ATMs:

At HDFC Bank ATMs you can avail the following services:

Account Selection Cash Withdrawal/Balance Enquiry Cheque/Cash Deposit Mini Statement of Accounts Account Statement/Cheque book Request Funds Transfer between your own Accounts PIN Change BillPay

At other banks’ ATMs, you can avail: Cash Withdrawal Balance Enquiry

Who's eligible for the RuPay Premium Debit Card? Both Residents and NREs can apply. Resident Indians should hold one of the following: Salary Account Savings Account Current Account

How do I apply for RuPay Premium Debit Card?Get details on eligibility criteria & documents required for RuPay Premium Debit Card.

Do you already have a HDFC Bank Account?All you need to do is download the application form, print it, and fill in your details. Then drop it off at your local HDFC Bank branch. We will take care of the rest, and send the card to your mailing address.

What if I don’t have a HDFC Bank Account?Download the Account Opening form, print it, and enter your information. This form will include the EasyShop Debit Card application – there’s no need to fill two forms. Take the submission to your closest HDFC Bank branch and we’ll complete the process.

Can I use the RuPay Premium Debit Card to pay online?Currently your RuPay Premium Debit Card can be used to make purchases from Domestic online merchants who have the RuPayPaySecure certification displayed on their website.

Where can the RuPay Premium Debit Card be used?

RuPay Premium Debit Card can only be used domestically, which is, at ATMs, merchant outlets and websites in India only.

For online transactions, is there a need to create a new password for RuPay Premium Debit Card with RuPayPaySecure?

No, there is no need of a password with RuPayPaySecure and the ATM PIN is all a customer needs to have. The authentication requires other credentials like image selection and pass phrase over and above the ATM PIN. Please refer the section "How do I use the RuPay Premium Debit During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking

PROFILE

Overview of SBI

EVOLUTION OF SBIThe origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India Sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modern is India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

EstablishmentThe establishment of the Bank of Bengal marked the advent of limited liability, joint stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the

capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially upto the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from time to time Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

PRODUCTS AND SERVICES PROVIDED BY SBI Savings Accounts Current Accounts Fixed Deposits

Loans Personal Loans Home Loans Two Wheeler Loans New Car Loans Car Loans Overdraft Against Car Express Loans Gold Loan Educational Loan loan Against Securities Loan Against Property Loan Against Rental Receivables

Cardsa) Credit Cards b) Debit Cards

Access Your Banki) Net Banking ii) Mobile Banking

iii) ATM iv) Phone Banking

SWOT analysis

STRENGTH Brand Name : SBI Bank has earned a reputation in the market over the period of

time(Being the oldest bank in India tracing history back to 1806)

Market leader: SBI is ranked at 380 in 2008 Fortune Global 500 list, and ranked 219 in 2008 Forbes Global 2000. With an asset base of $126 billion and its reach, it is a regional banking behemoth.

Wide Distribution Network: Excellent penetration in the country with more than 10000 core branches and more than 5100 branches of associate banks.

Diversified Portfolio: SBI Bank has all the products under its belt, which help to extend the relationship with existing customer. SBI Bank has umbrella of products to offer their customers, if once customer has relationship with the bank Some Products, which SBI Bank is offering are: Retail Banking Business banking Merchant Establishment Services (EDC Machine) Personal loans & Car loans insurance housing loans. Government Owned: Government owns 60% stake in SBI. This gives SBI an edge over private banks in terms of customer security.

Low Transition Costs-SBI offers very low transition costs which attracts small customers.

WEAKNESSES: The existing hierarchical management structure of the bank, although strength IN some

respects, is a barrier to change.

Though SBI cards are the 2nd largest player in the credit card industry, it has the highest nonperforming assets (NPAs) in the industry, which stand out to be at 16.28% (DEC 2007).

OPPORTUNITIES Merger of associate banks with SBI: Merger of all the associate banks (like SBH,

SBM, etc) into SBI will create a mega bank which streamlines operations and unlocks

value.

Planning to add 2000 branches and 3000 ATMs in 2008-2009. This will further increasing its reach.

Increasing trade and business relations and a large number of expatriate populations offers a great opportunity to expand on foreign soil.

THREATS Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian

market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of SBI bank.

Consumer expectations have increased many folds in last few years and the bank has not been responsive enough to meet them on time.

Private banks have started venturing into the rural and semi-urban sector, which used to be the bastion of the State Bank and other PSU banks.

Employee Strike: There was an employee strike in the year 2006 which disrupted SBI’s activities. This can be repeated in the future.

Overview of HDFC BANKHDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian bank". They realized that only a single-minded focus on product quality and service excellence would help them to get there.

HDFC Bank, one amongst the firsts of the new generation, tech-savvy commercial bank of india was set up in august 1995 after the Reserve Bank of India allowed setting up of Banks in the private sector. The Bank was promoted by the Housing Development Finance Corporation Limited, a premier housing finance company (set up in 1977) of India. Net Profit for the year ended March 31, 2006 was up 30.8% to Rs 870.8 crores.

Branch networkCurrently (2007), HDFC Bank has 583 branches located in 263 cities of India, and all branches of the bank are linked on an online real-time basis. The bank offers many innovative products & services to individuals, corporate, trusts, governments, partnerships, financial institutions, mutual funds, insurance companies. The bank also has over 1471 ATMs. In the next few months the number of branches and ATMs should go up substantially.

Profile

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC BANK AND CENTURION BANK OF PUNJAB MERGERMerger of Centurion Bank of Punjab with HDFC Bankat share swap ratio of 1:29. The Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab.

Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, “We were amongst the first to get a banking license, the first to do a merger in the private Sector with Times Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector banking space in India. HDFC Bank was looking for an appropriate merger opportunitythat would add scale, geography and experienced staff to its franchise. This opportunity arose and we thought it is an attractive route to supplement HDFC Bank’s organic growth. We believethat Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach to business.

PRODUCTS AND SERVICES PROVIDED BY HDFC BANK

Savings Accounts Regular Savings Account Savings Plus Account Savings Max Account No Frills Account Retail Trust Account Salary Accounts Payroll Classic Regular Premium Defence Salary Account Kid's Advantage Account Pension Saving Bank Account Family Savings Group

Current Accounts Plus Current Account Trade Current Account Premium Current Account Regular Current Account Reimbursement Current Account RFC - Domestic Account

Fixed Deposits Regular Fixed Deposit Super Saver Account Sweep-in Account

Loans Personal Loans Home Loans Two Wheeler Loans New Car Loans Car Loans Overdraft Against Car Express Loans Gold Loan Educational Loan loan Against Securities Loan Against Property Loan Against Rental Receivables

Cardsc) Credit Cards

i) Silver Credit Card ii) Gold Credit Card iii) Platinum Plus Credit Card

d) Debit Cards i) Easy Shop International Debit Card ii) Easy Shop Gold Debit Card iii) Easy Shop International Business Debit Card

e) Access Your Bank i) Net Banking ii) Mobile Banking iii) ATM iv) Phone Banking

SWOT analysis

STRENGTH Right strategy for the right products superior customer service vs competitors great brand image high degree of customer satisfaction good place to work lower response time with efficient & effective service dedicated work force making a long term career in the field

WEAKNESSES Customer service staff need training

OPPORTUNITIES Profits margins will be good Could extent to overseas broadly Could seek better customer deals

THREATS legislation could impact great risk involved very high competition prevailing in the industry lack of infrastructure in rural areas could constrain investment

CUSTOMER SATISFACTIONCustomer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The compare level of customer satisfaction toward HDFC andSBI banks is determined not only by the quality and type of customer experience but also by the customer’s expectations.

4. OBJECTIVE OF STUDY

To know preference of customers regarding Rupay cards of HDFC & SBI banks.

To analyze which facility influences the customer most while selecting Rupay cards Services.

To compare the Rupay cards services provided by HDFC & SBI banks.

To make aware about the Rupay cards services provided by HDFC & SBI banks.

5. RESEACH MEHOLOGY

It describes the data collection method, the sampling plan, the tools of investigation, planning and testing of questionnaire and the limitations of the study. The study requires the data to be collected from two different sources i.e. the primary source and the Secondary source. The primary data is collected with the help of structured questioners which is being modified & reliable and the secondary data through the various journals newspapers and websites.

(A). RESEARCH PROBLEM

The data collected from the customer are qualitative in nature i.e., views, perception, satisfaction, opinion etc., may change from time to time.

The data collected are primary in nature. Hence there is chance for a biased of misleading respondent from the customer.

On few occasions customer were reluctant to give information, because they were busy

(B). TYPES OF RESEARCH

Descriptive Study

(C). REAEARCH AND SAMPLE DESIGN

Research Design Present study enquired and brought forward the results concerning the set objectives specified before which relates to description of the state of affairs as a result it clearly states that it was a DESCRIPTIVE STUDY, which included fact finding enquiries of different kinds.

SAMPLING DESIGN

Universe: - The universe was finite in this study, since the population of Rudrapur City is certain and can be counted.

Sampling Unit: -The sampling unit is an individual (non-staff member) who is having account in SBI and HDFC Banks.

Sample Size: - The sample size for the study was 70 individuals, non-staff members of SBI and HDFC Banks, Rudrapur Out of which 35 belongs to SBI and 35 belongs to HDFC

Sampling procedure: .-. Due to the time and resource constraints the convenience sampling technique was used. The individuals were selected according to convenience to fill the questionnaires.

(D). DATA COLLECTION TECHNIQUES

Primary Data: Primary data was collected by means of questionnaires

Secondary. .data Secondary data collected by referring to various books, newspapers, magazines, journals and internet (details in bibliography)

(E). STATISTICAL TOOLS AND TECNINQUE

Pie charts Bar diagram Comparative analysis

(F). SAMPLING TECHNIQUES Random sampling

DATA ANALYSIS

1. SAMPLE SIZE

SBI 35

HDFC 35

SAMPLE SIZE

SBI HDFC 50% 50%

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank. this total sample size is 70 but equally divided 35 respondents HDFC AND SBI Bank. 35 SBI respondents and 35 HDFC Bank respondents.

2. COMPARATIVE STUDY OF AGE GROUP WITH GENDER OF CUSTOMER LINKING WITH SBI AND HDFC BANK

(a). AGE GROUP

AGE SBI HDFCLESS THAN 25 5 425-35 8 1235-45 6 745-55 12 955 & ABOVE 4 3

14

12

10

8

SBI6 HDFC

4

2

0

less than 25 25-35 35-45 45-55 55& above

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank. customer age of less than 25 age customer is 5 is sbi and hdfc is 4 , under to 25 – 35 aged customer sbi is 8 and hdfc is high 12 , under to 35 – 45 aged customer sbi is 6 and hdfc is 7, under to 45 – 55 aged customer sbi is high 12 and hdfc is 9 and 55 to above customer sbi is 4 and hdfc is 3.

(b). GENDER

GENDER SBI HDFCMALE 28 27FEMALE 7 8

30

25

20

15 SBI

HDFC

10

5

0

MALE FEMALE

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank .gender of customer male sbi is high 28and hdfc is 27 and female sbi is 7and hdfc is 8 in sbi bank and HDFC Bank.

3. OCCUPATION OF THE CUSTOMERS OF SBI AND HDFC BANK

OCCUPTION SBI HDFCSERVICE 15 12BUSSINESMAN 6 13PROFESSIONAL 3 5STUDENT 8 3HOUSEWIFE 3 2

16

14

12

10

8 SBI

6HDFC

4

2

0

SERVICE BUSINESMAN PROFESSIONAL STUDENT HOUSEWIFE

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank . occupation of sbi bank and HDFC Bank customer is following : service persons SBI is 15and hdfc is 12 , businessman persons SBI is 6 and hdfc is 13, professional persons SBI is 3 and hdfc is 5, student persons SBI is 8 and hdfc is 3 and housewife’s SBI is 3 and hdfc is 2.

4. DISTRIBUTION OF THE INCOME OF THE CUSTOMERS OF SBI AND HDFC BANK

INCOME SBI HDFCNIL 0 2LESS THAN 50000 8 450000-150000 7 9150000-300000 10 8300000-500000 6 9500000- ABOVE 4 3

12

10

8

6

4 SBI HDFC

2

0

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank . income of sbi bank customer is following : nil income persons SBI is 0 and hdfc is 2, less than 50000 income persons SBI is 8 and hdfc is 4. under 50000 to 150000 income persons SBI is 7 and hdfc is 9 , under 150000 to 300000 income persons SBI is 10 and hdfc is 8, under 300000 to 500000 income persons SBI is 6 and hdfc is 9 , and 500000 to above income persons SBI is 3 and hdfc is 4

5. MOST IMPORTANT REASON FOR CHOOSING SBI AND HDFC BANK FOR RUPAY CARD.

FACTORS SBI HDFCI have a traditional bank account with the same bank 12 3The brand name of the bank 4 6The excellent service offered by this bank 5 12Location advantage 4 7

14

12

10

8

6

4

2

0

I have a traditional The brand name of bank account with the bank the same bank

The excellent Location advantage service offered by

this bank

SBI

HDFC

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and hdfcbank .show that most important reason for choosing sbi bank and hfdc bank. Most person select to sbi bank a ndhdfc bank is many reason . so many person thing to choose sbi and hdfc bank that following : number of SBI is 12 and hdfc is 3 persons select that I have traditional bank account with the same bank , number of SBI is 4 and hdfc is 6 persons select that the brand name of the bank , number SBI is 5 and hdfc is 12 persons select that the excellent service offered by this bank , and number SBI is 4 and hdfc is 7 persons select that location advantage.

6. ACCOUNT FACILITY AVAILING IN THE SBI AND HDFC BANK FOR RUPAY CARD.

FACILITY SBI HDFCSaving’s account 18 21Current account 5 7Fixed deposit 12 6NRI account 0 1

25

20

15

SBI

10 HDFC

5

0

Saving's account current account fixed account NRI account

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank .account facility show that many account advantage in sbi bank and hdfc bank . saving account holder persons SBI is 18 and hdfc is 21, current account holder persons SBI is 5 and hdfc is 7, fixed account holder persons SBI is 12 and hdfc is 6 and NRI account holder persons SBI is nil (zero) and hdfc is 1.

7. HOW WOULD YOU RATE THE FOLLOWING BANKING SERVICE QUALITY (RUPAY CARD SERVICES) ON SCALE OF 1-5 PROVIDED BY BANK WHERE.

1-EXCELLENT, 2 GOOD , 3- ABOVE-AVERAGE , 4-AVERAGE , 5- BELOW AVERAGE

EXCELLENT GOOD ABOVE AVERAGE BELOWAVERAGE AVERAGE

SBI HDFC SBI HDFC SBI HDFC SBI HDFC SBI HDFC

ACCESS 13 24 9 6 6 3 5 2 2 0COMMUNICATION 7 6 11 12 13 14 3 2 1 1CONFIDENTIALITY 15 7 10 22 6 4 3 2 1 0COURTEY 12 11 9 10 7 12 5 2 2 5RELIABILITY 14 15 9 8 4 6 5 4 3 2SECURTY 17 17 12 7 4 6 1 4 1 1RESPONIVENESS 9 14 7 8 12 6 5 4 2 3WAITING TIME 5 3 6 2 4 8 9 17 11 5

30

25

20 ACCESS

15COMMUNICATION

CONFIDENTIALITY10

COURTEY5 RELIABILITY

0 SECURTYSBI HDFC SBI HDFC SBI HDFC SBI HDFC SBI HDFC RESPONIVENESS

AVERAGE AVERAGE WAITING TIME

EXCELLENT GOOD ABOVE AVERAGE BELOW

Interpretation:

This study funded that frequency in the excellent hdfc higher than sbi. A study funded that frequency in the good hdfc higher than sbi, a study funded that frequency in the average above hdfc some equal than sbi, a study funded that frequency in the average hdfc higher than sbi and a study funded that frequency in the excellent sbi higher than hdfc bank.

8. WHICH FACILTY SATISFIES YOU MOST INCLUDED WITH RUPAY CARD SERVICES.

FACILITY SBI HDFCATM 13 10LOAN 7 4EARLY CHEQUE CLEARANCE 2 8PERPARATION OF DRAFTS 3 2INTEREST PACKAGE 3 3NET BANKING 3 5PHONE BANKING 4 3

14

12

10

8

6

4

2

0

SBI HDFC

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank. that show many facility satisfy to customer satisfaction level is following ; AMT rating sbi is 13 and hdfc is 10, loan rating sbi is 7 and hdfc is 4, early cheque clearance rating sbi is 2 and hdfc is 8, preparation of drafts rating sbi is 3 and hdfc is 2, interest package rating sbi is 3 and hdfc is 3, net banking rating sbi is 3 and hdfc is 5 and phone banking rating sbi is 4 and hdfc is 3.

9. IF YOU ARE PROVIDED WITH BETTER SERVICES BY OPTIONAL BANK WOULD YOU LIKE TO MOVE TO OTHER BANK

PARTICULER SBI HDFCYES 6 9NO 29 26

35

30

25

20

SBI15 HDFC

10

5

0YES NO

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank . my questionnaires show that other bank provide better facility for your bank so you move to other bank that sbi and hdfc bank customer response is yes person sbi is 6 and hdfc is 9 and no persons sbi is 29 and hdfc is 26.

10. OVERALL SATISFATION OF THE CUSTOMER WITH THE PERFORMANCE OF SBI BANK AND HDFC BANK PROVIDED TO RUPAY CARD.

SATISFACTION SBI HDFCEXCELLENT 8 7GOOD 6 12SATISFACTORY 18 8AVERAGE 3 5BELOW AVERAGE 0 3

20

18

16

14

12

10SBI

8 HDFC6

4

2

0EXCELLENT GOOD SATISFACTORY AVERAGE BELOW

AVERAGE

Interpretation:

From the above graph it is clear that majority of the respondents are part of SBI Bank and HDFC Bank . my questionnaires show that overall satisfaction level of sbi and hdfc bank customer response and measurement to five level sbi is 8 and hdfc is 7persons is vote to excellent , sbi is 6 and hdfc is 12 persons is vote to good, sbi is 18 and hdfc is 8 persons is vote to satisfactory , sbi is 3 and hdfc is 5 persons is vote to average and sbi is 0 (zero) and hdfc is 3 persons is vote to below average .

6. FINDINGS

1. Customers were not fully aware of the Rupay cards services and the various charges which they have to pay. Therefore Banks should try to give some more information to its existing customers.

2. Both the customers of Rupay cards from SBI and HDFC bank have suggested that the bank should open one of its branches in industrial area like focal point.

3. One of the most common suggestions was to lower down the minimum balance required in the saving s account.

4. Staff should be more co-operative to the customers.

7. LIMITATION

Though every effort was made to make the report authentic in every sense, yet there are few factors which might have their influence on the final report.

1. There was time shortage. Time provided to us was very short which make it difficult for us to conduct survey at wider range.

2. Sometimes respondents did not respond well to all the questions in the questionnaire.

3. Low cooperation from the bank executives make to struggle more, due to which we were forced to restrict our sample size to 80.

4. Some biasness might have occurred in analysis. Because of lack of expert knowledge.

5. Best efforts were made to incorporate all-important variables in study, yet chances of some of variables not appearing in study are not ruled out.

6. Frequent developments in this sector can be a major reason of limitation in the study.

7. Biasness in views of respondents can’t be ruled out.

8. Resistance to change sometimes affects view of respondents.

8. CONCLUSION

The project report is based on the A Study Of Customer’s Satisfaction Towards Rupay Cards(AComparative Study Of SBI &HDFC Bank In Rupnagar)” During project we come to know that both the banks are highly preferred by the customers but their preference is different up to some extend towards the service of these banks. Following are the assumptions of the project.

1. Range of the survey is limited to Patiala city. It may not hold the same result in the different city.

2. The sample size for the survey is restricted up to 70. Out of Which 35 questionnaire was filled by the customers of SBI and 35 was filled by customers of HDFC bank.

3. Survey is done in a very short period of time. This may have impact on the final result of the survey.

9. BIBLIOGHAPHY

NEWS PAPERS

Business standard

EconomicTimes

BOOK NAMES:

1. C.R. Kothari (2011) “Research methodology” TATA Mc Graw Hill 3th Ed

2. Cooper and schindler,(2012),”Business Research methods”TATA Mc Graw Hill 4th Ed.

WEBSITES:

www.hdfcindia.com

www.statebankofindia.com

http://www.en.wikipedia.org/wiki/Standard_Chartered_Bank

http://www.rupaycarddebit.com

10. QUESTIONNAIRE

CUSTOMER PREFERENCE TOWARDS RUPAY CARDS OF SBI AND HDFC BANK

1. Name____________________

2. Gender

Male Female

3. Age

Less than 25 25-3535-45 45-5555 – above

4. Occupation

Service business BusinessProfessional StudentHousewife

5. Income

Nil Less than 5000050000 to 150000 150000 to 300000300000 to 500000 500000 and above

6. Bank you are dealing focusing with Rupay card services.

HDFC SBI

7 What was the single most important reason that you chose this particular Bank for Rupay cards.

I have a traditional bank account with the same bank

The brand name of the bank

The excellent service offered by this bank

Location advantage

8. Which account facility you are availing in the Bank for Rupay cards services.

Savings account Current account

Fixed deposit NRI account

9. How would you rate the following banking service quality (Rupay cards services )on scale of 1-5 provided by bank where 1-excellent, 2-good, 3 above-average, 4-average, 5-below average

Access Communication

Confidentiality Courtesy

Reliability Security

Responsiveness Waiting time

10. Which facility satisfies you most included with Rupay cards services.

ATM Interest package

Loan Net banking

Early cheque clearance Phone banking

Preparation of drafts

11. If you are provided with better services by optional bank. Would you like to move to other bank.

YES NO

12. How would you rank the Rupay cards services.

Excellent Good

Satisfactory Average

Below Average

Suggestion

If any ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.