Lower Transaction Levels of Rupay Debit Card in Maharastra and Odisha
Essay Preview: Lower Transaction Levels of Rupay Debit Card in Maharastra and Odisha
Report this essay
OBJECTIVE To carry out a market research to identify the reasons behind lower transaction levels of Rupay debit card in Maharastra and Odisha.To understand the cash and card usage behaviour of the consumers and how it affects the transaction levels of Rupay Card.To study the awareness of bank customers about debit cards and the attitude of card holders towards Rupay Debit cards.Develop strategies to increase Rupay card transactions in the target states.SCOPE OF THE STUDYThe scope of the study is limited to two states – Maharastra and Odisha. The study has covered 7 banks in 12 different branches across two districts –Satara and Cuttack. In Maharastra, the bank interviews and consumer survey was conducted at 8 branches of State Co-operative and Regional Rural Banks in Satara district. The merchant survey ANKITAIn Odisha, the study was conducted at four branches of State Co-operative and Regional Rural Banks in Cuttack district. The Merchant survey was conducted in Cuttack town and the Banking correspondents interview was done at Tangi, Cuttack district.SL.NOBank ANKITABranch1Odisha State Co-operative Bank(OSCB)Link Road2Odisha State Co-operative Bank(OSCB)Jail Road3Odisha Gramya Bank(OGB)Tangi4Odisha Gramya Bank(OGB)TelengapenthaSL.NOBankBranch1Odisha State Co-operative Bank(OSCB)Link Road2Odisha State Co-operative Bank(OSCB)Jail Road3Odisha Gramya Bank(OGB)Tangi4Odisha Gramya Bank(OGB)TelengapenthaLIMITATIONSThe study covers more than three hundred consumer survey respondents along with 40 Merchants response as well as Bank Manager interviews and Banking correspondents interview. Due to above reason, time was a constraintThis research was conducted in the post PMJDY and Post Mudra era.METHODOLOGYBusiness ProblemResearch Problem –HypothesisThe Card usage, Awareness levels and Cash propensity(Low) is positively correlated with EducationThe Card usage, Awareness levels and Cash propensity (Low)is negatively correlated with Age.The Card usage, Awareness levels and Cash propensity(Low) is positively correlated with IncomeResearch Design-Research MethodologyDATA SOURCES4.1 Primary Sources of Data CollectionConsumer Survey Individual consumer surveys were conducted in order to collect data on cash and card behaviour, awareness levels of Rupay features, transaction patterns, and infrastructure connectivity. The questionnaire used for survey is attached in the annexure.
Semi Structured InterviewsSemi interviews were conducted with Bank managers and Banking Correspondents to identify the barriers at consumer as well as bank level. Focus Group Discussions FGDs were conducted with the consumers as well as Bank staff at different branches to understand the key problems areas with Rupay Debit card and major concerns of consumers.Merchant Survey The merchants who use POS terminals for payments were covered to understand Point of sale behaviour of consumers as well as merchants. 4.2 Secondary SourcesFor detailed information about the secondary sources were used. The major sources of secondary data are given below:BanksATM and POS Transaction data Merchant Bank statementsCustomer records at Bank Branches.Head office 5. SAMPLING PLANThe sample size for consumer’s survey was 304 and 40 for merchant’s survey. The sampling method followed was Multi stage sampling. In the first stage, based on purposive sampling only co-operative and rural banks were selected for study since the transactions levels were quite low for these banks. In the second stage, convenience sampling was used to select the respondents as the number of customers visiting a bank is limited. The Mechants were selected based on convenience sampling.Bank BranchSample SizeOdisha State Co-operative Bank(OSCB)Link Road46Odisha State Co-operative Bank(OSCB)Jail Road35Odisha Gramya Bank(OGB)Tangi45Odisha Gramya Bank(OGB)Telengapentha29IntroductionAbout NPCINational Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA). The RBI, after setting up the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) in 2005, released a vision document incorporating a proposal to set up an umbrella institution for all the RETAIL PAYMENT SYSTEMS in the country. The core objective was to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.