• The present research was conducted to assess “New age
financial products & their role in transforming modern
banking”. The objective was to study that the new age banking
products have played a major role in changing the
buying/transactional behaviours in the recent times . A sample
size of 60 respondents was taken from Jammu of J&K bank
customers. The tools used for data collection were Self
structured questionnaire to measure the responses. These new
age banking products were studied to review how they
transformed modern Banking: ATM, Credit Cards, Debit
Cards, E-Banking and SMS Banking.
REVIEW OF LITERATURE
Ramalingam P. (2008) studies the usage pattern of credit card
holders of SBI, ICICI and ABN banks of Kanchipuram town
in Tamil Nadu. The study concludes that higher income group
and married persons utilizes the cards to the maximum mainly
for impulse purchases due to convenience and Citibank cards
are more popular because of dominance in advertising. The
study also reveals that Master and VISA cards are the leading
card brands in India and suggests the banks to improve overall
functioning to provide satisfied credit card services.
REVIEW OF LITERATURE
• Dixit.N. et al; (2010) in her study investigates on how the
customers perceive the value of Internet banking over the
traditional way of banking. Primary data was collected
from 250 respondents, through a structured questionnaire.
Statistical analysis, descriptive statistics and correlation
were used to know the perceived service quality of
Internet banking (IB) and level of satisfaction between
customers in India. The finding depicts many factors such
as perceived value, perceived service quality; customer
satisfaction and their loyalty have significant impact on a
customer acceptance of Internet banking.
REVIEW OF LITERATURE
• Gan et al; (2007) conducted a research to examine consumers'
choices between electronic banking and non-electronic
banking in New Zealand. Internet banking is no longer a
competitive advantage but a competitive necessity for banks.
The findings in the paper show that the output from the logistic
regression indicates that the service quality, perceived risk
factors, user input factors, employment, and education were
the dominant variables that influence consumers' choice of
electronic banking and non-electronic banking channels.
• A Debit Card (also known as a Bank card or check card) is
a plastic payment card that provides the cardholder electronic
access to their Bank account(s) at a financial institution. Some
cards may bear a stored value with which a payment is made,
while most relay a message to the cardholder's Bank to
withdraw funds from a payer's designated Bank account
• Instant Debit Card
• Personalized Debit Card
Issuance fees of EMV instant Debit Card – RS 100/-
Issuance fees of EMV personalized Debit Card – RS 200/-
Annual fee EMV instant & personalised Debit Card RS 35/-
• EMV: The chip is embedded on the card and contains all
information in an encrypted format. It also comes with a
personal identification number (pin). This technology has to
comply with standards developed by Europay, Mastercard And
GLOBAL ACCESS CARDS - DEBIT
• Pin based – Maestro/Cirrus Debit Card
• Accepted at all domestic as well as International Mastercard,
Maestro, Cirrus enabled ATM’s & Point of Sale locations.
• Accepted at NPCI (NFS) ATM’s
• No transaction fee at J&K Bank ATM”s
• Provides online access to savings or current account
• No transaction fee on purchase
• A Credit Card is part of a system of payments named after the
small plastic card issued to users of the system. It is a card
entitling its holder to buy goods and services based on the
holder's promise to pay for these goods and services. The
issuer of the card grants a line of credit to the consumer (or the
user) from which the user can borrow money for payment to a
merchant or as a cash advance to the user.
Banks are adding chips to their current magnetic stripe cards to
enhance security and offer new service, called smart cards.
Smart cards allow thousands of times of information storable
on magnetic stripe cards. In addition, these cards are highly
secure, more reliable and perform multiple functions. They
hold a large amount of personal information, from medical and
health history to personal Banking and personal preferences.
• Pin based -maestro / cirrus Debit Card
• Provides online access to savings or current account.
• Accepted at all domestic as well as International
Mastercard™, Maestro™, Cirrus™ enabled ATM's and point
of sale locations.
• Accepted at National Financial Switch (NFS) ATM's.
• No transaction fee at J&K Bank ATM's
• No transaction fee on purchases
Issuance fee Chip based card : RS .200/- plus taxes
Annual fee RS. 300/- plus taxes
Renewal fee Chip based card : RS .300 /- plus taxes
Add – on card Chip based card : RS .300 /- plus taxes
Service charges/ intrest rate
( purchase/ cash)
2.25 per month
Payment fee RS 100/- plus taxes
Types of cards : Blue empowerment card, Silver empowerment
card , Gold empowerment card
Eligibility : Annual income
For salaried -above RS 80,000.00
For self employed -above RS. 1,50,000.00
Blue empowerment card- upto RS.25,000.00
Silver empowerment card-upto RS.50,000.00
Gold empowerment card-upto RS.1,00,000.00
Rate of interest - 2.25% per month
DEBIT & CREDIT CARDS CAN BE
FUNCTIONED IN THREE WAYS:
• ATM card/withdrawal of money
• Online - now a days the people can buy the commodities
online through payments by Debit Card & Credit Card
• By sales at POS
• A point of sale/service (POS) machine is used to conduct retail
transactions. It can provide many services, including Credit
Card processing, check reading and cash transactions,
depending on the model. These devices can be found virtually
anywhere, from grocery stores to gas stations. The technology
used in POS machines results in a speedy and secure
1)Types of point of sale terminals
Sno. Type of
Monthly charges / rentals Instru
Free of monthly rentals if
average monthly sales is
minimum RS.25000/=in a
RS.1500 RS.650/= ** Nil
Following two POS terminals are available for installation at
2) CHARGES / MONTHLY RENTALS
Sno. Type of
Monthly charges / rentals Instrum
Free of monthly rentals if
average monthly sales is
minimum RS.25000/=in a
RS.1500 RS.650/= ** Nil
The installation charges and monthly rentals shall be applicable as below:
3) MERCHANT SERVICE FEE (MSF)
Type of card J&K Bank cards Other Bank cards
Up to RS.2000 0.75% 0.75%
Above RS.2000 1.00% 1.00%
All transactions N.a. 1.5%
Credit Card All transactions 1.3% 1.5%
Transaction charges recoverable from merchants on the transaction
carried through POS are as under:
• POS machines offer the ability to automate many tasks that
have historically required human oversight. These machines
can scan Credit Cards, authorize the charge, and even accept a
digital signature. POS machines can even synchronize with the
local area network of the business, and automatically update
balances and inventory with each completed transaction.
• ATM is designed to perform the most important
function of Bank. It is operated by plastic card with its
special features. The plastic card is replacing cheque,
personal attendance of the customer, Banking hours
restrictions and paper based verification. There are
Debit Cards. ATMs used as spring board for electronic
fund transfer. ATM itself can provide information about
customers account and also receive instructions from
customers - ATM cardholders.
• An ATM is an electronic fund transfer terminal
capable of handling cash deposits, transfer
between accounts, balance enquiries, cash
withdrawals and pay bills.
• It may be on-line or 0ff-line.
• Any customer Possessing ATM card issued by
the shared payment network system can go to
any ATM linked to shared payment networks
and perform his transactions.
• Internet Banking (or E-Banking) means any user with a
personal computer and a browser can get connected to his
Bank -s website to perform any of the virtual Banking
functions. In internet Banking system the Bank has a
centralized database that is web-enabled. All the services that
the Bank has permitted on the internet are displayed in menu.
Any service can be selected and further interaction is dictated
by the nature of service.
Banking products in India into 3 types based on the levels of
access granted. They are:
• Information Only System
• Electronic Information Transfer System
• Fully Electronic Transactional System
SERVICES PROVIDED BY E-
• Bill payment
• Fund transfer
• Credit Card bills
• Railway pass
• Investing online
• Recharging prepaid phones
• SMS Banking is a service that allows customers to access their
account information via Mobile phone. SMS Banking services
are operated using both push and pull messages.
• Customers who maintain an account, with J&K Bank having
internet Banking facility enabled for the account.
• Account balance inquiry
• Transaction inquiry
• Cheque status inquiry
• Password change
• Suspending self
The survey is conducted in the Jammu region of the state. The targeted
population is the customers of the J&K Bank.
The collection of the necessary information to fulfil this report was through
primary data and secondary data which is as follows:
Primary data: the primary data has been collected with the aid of self
structured questionnaire. The self structured questionnaire was presented to
the customers and the prospects with the aim to check the factors that lead
to their preference of the services of the J&K Bank and try to explore some
areas in which they found the services inadequate
Secondary data: this data was collected from various sources such as annual
reports, magazines and from companies records i.e. Analysis of org reports,
A sample size of 60 respondents was taken from jammu of J&K bank
customers &.Self structured questionnaire has been used to measure the
COMPETITORS OF JAMMU &
KASHMIR BANK :
Some of the main competitors of Jammu &
Kashmir Bank in Jammu.
• SBI BANK
• PUNJAB NATIONAL BANK
• ICICI BANK
• HDFC BANK
• AXIS BANK
• UNION BANK OF INDIA
• The new age financial products like Debit Card, Credit Card,
POS, SMS Banking & E- Banking have changed the scenario
in past time .
• People have developed a habit of using more plastic money
for their day to day transaction/ home affairs. Small needful
daliy activities like recharging dish tv or paying
electricity/Mobile bills is done through plastic money.
• Also while shopping they use their cards & make best use of
opportunities available in the market.
• Now, they prefer to withdraw their money through ATM by
Debit Cards which in turn reduces the footfall of customers in
Banks with the purpose of withdrawl of small amounts from
their own accounts.
• The customers get instant accounts update through SMS
• It has been observed that people prefer doing online
transaction through Debit Cards; they don’t want to rely on
undue credit from Bank.
• Now they have transformed themselves with the modern
Banking tools by dealing with their accounts through E-
Banking, however for inter Bank transfer they prefer to
personally deposit but they should inculcate a habit through E-
Banking and make their transaction easy.
• For shopping, leisure, and basic needs people have
transformed themselves from cash to cards.
• They are also satisfied by the services provided by Bank.
• Flow of plastic money has increased from the past in
Jammu as such but there is still a good market available
for these products which can be done through marketing
intelligence ( marketing intelligence system).
• So, it has been analysed through our study that the new
age banking products have played a major role in
changing the buying/transactional behaviours in the
recent times and thus have changed modern Banking
LIMITATIONS OF THE STUDY
• Some of the persons were not so responsive.
• Possibility of error in data collection because many of investors may
have not given actual answers of my questionnaire.
• Sample size is limited to 60 visitors of Jammu & Kashmir Bank.
• The research is confined to a certain part of Jammu
• To maintain the secrecy full information is not given by the company.
• As I was involved in the sales team time was the constraint to complete
• The accuracy of the result is limited to the reliability of methods of
investigation and analysis of data.
• The Jammu and Kashmir Bank should appoint Direct Selling
Agents (DSA’S), which has almost become a necessity in
modernized Banking culture to attract new businesses.
• J&K Bank should devise some aggressive marketing strategies
to expand its market
• The financial services like Credit Cards should be advertise in
the various branches of the Bank and the customers should be
made aware of the services via SMS and E-mail
• The process cycle should take less time to response in
providing financial services to the customers so as to increase
the customer satisfaction
• The J&K Bank generally pay less heed in providing loans to
the salaried people in the private sector, whereas their
competitors like the ICICI Bank are. This is an avenue, which
J&K Bank should walk.
• The loyal merchants should be given some more discounts so
that they would not switch to other vendors it can be like that
at the merchant’s location a small card should be kept
depicting about the attractive schemes of the Bank and benefits
of using Credit Cards.
• The billing system of the Credit Cards should be made easy
for the customers. It may be like that the payment should be
debited from the customer’s account automatically with the
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• WEBSITE: www. jkbank.net