It’s an age of Plastic money; Customer doesn’t have to go bank for withdrawn money, not carrying cash all the time and easily customer keep record of cash management. Debit card made the entire thing conveniently. For bank it’s an easy way to give these services to its customer just offer a single product called Debit card. If we see Indian present scenario we found that increasing use of Debit card transform our economy as a cashless economy. Debit card give freedom to card holder to use it anywhere anytime. It enables cardholder withdrawn money at our bank ATMs and other bank ATMs.

Debit card is easy to carry, handle and manage while travelling. Being small, thin, and having negligible weight, it easily fit in pocket. Today, most banks offer bonus points to encourage their customer to make use of Debit card while purchasing. In malls stores or in retail shops found hoarding of cash back offer. After every sale, a merchant gives the bank a small percentage as a commission. The commission is further divided by the bank with its cardholder who did the purchase. Also cardholder gets in return bonus points on selected financial transaction executed by him or her via a Debit card.

Benefit of Debit card:

1. Debit card acts as an alternative to a traditional cheque payment.

2. Helps to manage cash management. It makes user to use responsible spending of own money within account limit.

3. Interest is charge on borrowed money like on credit card; here cardholder uses its own money so transactions are interest free.

4. It accepted internationally and almost everywhere by merchant who display the logo of payment processing companies like VISA, Master card, American express etc.

5. It offers security; minimize the chance of fraud, misuse and theft of money.

Thomas Bishop (2012). The popularity of Debit card is mainly due to the fact that unlike the Western world, where the culture is to live on loan, Indians are credit-shy people. “Credit shy Indians are going by the Debit card”.

Debit card, credit card and ATM card:

In a debit card transaction, the amount of a purchase is withdrawn from the available balance/fund in the cardholder's account. If the available funds are insufficient, the transaction is not completed. A debit card looks like a regular ATM card, and you can use it at ATM. The difference is that a debit card has a Visa or MasterCard logo on its face. ATM card is a PIN-based card. In addition to using it at ATM, you may also be able to use it to make purchase. In credit card you are borrowing money to be repaid later. A credit card allows you to pay later for the items you bought. You use the card to make your basic transactions. The credit card company /financial institution then charges you interest on your purchases, though there is generally a grace period of within that period cardholder has to pay interest.

Debit card vs Credit card:

Credit cards are useful for people who able to settle down the appropriate money monthly and manage the card properly. Debit cards are good for people who able to manage their life with the budget. Credit cards always a best solution in your emergency situations-eg. If a businessman has to pay big amount but he doesn’t have enough money in his wallet in such situation Credit card will be helpful. In case of debit card not do so unless you maintain a good balance on your debit card. Credit card blowing you budget, it encourage cardholder to spend more and more money. But day after day the credit card monthly settle down amount is going higher and higher unless you managed properly and if you fail to manage your credit card properly then you have to face more charges. In case of Debit card, very Convenience, you don't have to carry cash, it keeps you within budget. Debit card is easy to get than a credit card. You can opt for "cash back" at most stores or use your debit card as an ATM card at cash machines.

Debit card is substitute of Cheque:

Debit card perform many of the functions of a chequebut they are not caught by the definition of the Bills of Exchange Act 1882:they are certainly not an order “in writing addressed by one person to a banker and signed by the person giving it. A payment by debit card is not negotiable, as a cheque may be, and cannot be stopped where the transfer of funds is instantaneous. As compare to cheque, one of main disadvantages of a debit card could be the absence of any documentary proof that a transaction has taken place or of its details. The absence of any written proof record also makes it that much more difficult to resolve disputes over error, system failure or fraud.

Pradhan Mantri Jan Dhan Yojna:

Prime Minister of India Mr. Narendra Modi had announced this scheme on his first Independence Day speech on 15^th August 2014.It is popularly known as PMJDY scheme. This scheme is planning on revolutionizing the traditional banking system in India by providing the banking account with debit card and Insurance coverage to every citizen. Under the scheme:

1. Account holders will be provided zero-balance bank account with RuPay debit card, in addition to accidental insurance cover of Rs 1 lakh (to be given by 'HDFC Ergo').

2. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹ accident, they will be given life insurance cover of ₹ 30,000(to be given by LIC).

3. After Six months of opening of the bank account, holders can avail 5,000 ₹ overdraft from the bank.

4. With the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones so far.

5. Mobile banking for the poor would be available through National Unified USSD Platform (NUUP) for which all banks and mobile companies have come together.

In India increasing use of Debit card:

Point of sale or POS is more commonly abbreviation refers to the capturing of data and customer payment information at a physical location when goods or services are bought and sold. The POS transaction is captured using a variety of devices which includes computers, cash register, optical and bar code scanner, magnetic card readers, or any combination of these devices. POS (Point of sale) is the time and place where a retail transaction is completed. It is the point at which a customer makes a payment to the merchant in exchange for goods or after provision of services. The POS in various retail situations would use customized hardware and software tailored to their particular requirements. Retailers may utilize electronic cash register system, touch-screen display, barcode scanners, receipt printers, scales and variety of other hardware and software available. There are different segments where this service are using like Retail POS, Grocery store POS, Bar POS, Coffee shop POS, Pizza POS, Salon POS, Liquor POS, Mobile POS, Movie POS, Restaurant POS etc.

No of Transaction through Debit Cards-ATM
Bank Name	Jan-15	Feb-15	Mar-15	Avg
BANK OF BARODA	13522113	13180924	14667943	13790326.67
BANK OF INDIA	19157452	18812366	21124620	19698146
CANARA BANK	17098046	16517141	15284197	16299794.67
PUNJAB NATIONAL BANK	19919295	19031332	21160658	20037095
STATE BANK OF INDIA	252938382	239025108	258184051	250049180.3
IDBI LTD	7974959	7380727	8502712	7952799.333
AXIS BANK LTD	24350996	22156393	24110090	23539159.67
HDFC BANK LTD	31439384	29431449	32621787	31164206.67
ICICI BANK LTD	33992002	31596350	34601905	33396752.33

Source: RBI

No of Transaction through Debit Cards-POS
Bank Name	POS	POS	POS	Avg
BANK OF BARODA	2124632	1921920	2174710	2073754
BANK OF INDIA	2360734	2197439	2484550	2347574.333
CANARA BANK	1770693	1661285	1883679	1771885.667
PUNJAB NATIONAL BANK	2580869	2260452	2563190	2468170.333
STATE BANK OF INDIA	15917946	14813419	16509423	15746929.33
IDBI LTD	1426818	1313747	1486786	1409117
AXIS BANK LTD	6154646	5510461	6242742	5969283
HDFC BANK LTD	11151245	10288412	11582587	11007414.67
ICICI BANK LTD	12793751	11294934	12703969	12264218

Source: RBI

No of Transaction through Debit Card

Amount of transaction through Debit Cards-ATM (Rs. Millions)
Bank Name	ATM	ATM	ATM	Avg
BANK OF BARODA	56155.30	54859.04	60265.67	57093.336
BANK OF INDIA	46370.32	45185.07	50678.63	47411.337
CANARA BANK	50811.86	49641.10	59599.90	53350.95
PUNJAB NATIONAL BANK	87925.45	84050.76	92345.29	88107.166
STATE BANK OF INDIA	641663.95	449630.85	636592.66	575962.49
IDBI LTD	32760.80	30482.50	35124.30	32789.2
AXIS BANK LTD	117422.00	108954.83	118671.21	115016.01
HDFC BANK LTD	152378.68	143059.70	159471.79	151636.72
ICICI BANK LTD	162789.20	151695.88	166615.84	160366.97

Source: RBI

Amount of transaction through Debit Cards-POS (Rs. Millions)
Bank Name	POS	POS	POS	Avg
BANK OF BARODA	2219.42	1911.15	2119.94	2083.5022
BANK OF INDIA	2192.66	1964.26	2219.15	2125.357
CANARA BANK	2525.89	2197.52	2573.24	2432.2188
PUNJAB NATIONAL BANK	2860.97	2453.26	2659.01	2657.7466
STATE BANK OF INDIA	24236.85	5628.23	22374.00	17413.025
IDBI LTD	1921.20	1689.00	1881.20	1830.4667
AXIS BANK LTD	9746.81	8347.36	9667.59	9253.9204
HDFC BANK LTD	17633.10	15234.83	17067.00	16644.979
ICICI BANK LTD	20172.11	17021.56	19211.13	18801.601

Source: RBI

Amount of Transaction through Debit Cards (Rs. Millions)

OBJECTIVE:

1. To study benefit associated with Debit card.

2. To study different segment in which Debit card are using.

3. To study problem faced by customer while using Debit card.

LITERATURE REVIEW:

Pallister and Isaacs (2002):

A debit allows a customer to pay for goods and services at various retail outlets by directly debiting their bank accounts. On the other hand, credit cards enable the holders to obtain credit and withdraw cash up to a pre-arranged ceiling.

P Manivannan (2013):

Usage of Credit card was measured a luxury, and has become needed. These plastic money and electronic payments was and used by only higher income group. This facility extended not only to customers in urban areas or cities, but also to customers residing in rural area. However, today, with development of banking and trading activity, the fixed income group or salaried classes are also start using the plastic money and electronic payment systems and particularly Credit cards.

Bansi Patel and Urvi Amin (2012). in any transaction Plastic money becomes inevitable part of the transaction and with it life becomes more easy and development would take better place and along with the plastic money it becomes possible that control the money laundry and effective utilization of financial system would become possible which would also helpful for tax legislation.

Noknoi (Nov 2009):

Debit card made a little change on their expense behaviour especially in food and drink consumption.

Simiyu (2012):

Card holders use their cards for consumption rather than for investment purpose as indicated in the reduced levels of saving and increased level of consumption through usage of the cards.

Linda. S. (2012):

Males are more preferred Debit card in Coimbatore city. Customers are under the age group of 30 – 40 years are using more plastic cards. Cardholders are mostly post graduate persons. Majority of the customer are holding debit card of Private sector banks.

Kosse(2013):

Consumers’ daily payment preferences are strongly affected by their perceptions of safety i.e. use of debit cards. It is essential to realize that perceptions may not always reflect reality. Consumers may wrongly perceive that payment through debit card is unsafe.

Patil, S (2014):

The use of Plastic cards is more and more increasing for online payment. The arrival of malls, multiplexes, online shopping stores and shopping complexes encourage the customers to make use of plastic cards.

Bishnoi, S (2013):

Specialized services such as 'recharge prepaid mobile card', 'online shopping' association with income. 'Transfer funds between your own accounts', 'recharge prepaid mobile card', stock market and mutual funds transaction', 'donations and charity' and 'online shopping' are significantly associated with occupational categories of the respondents.

1. Data Analysis and Interpretation:

Perception of Customer regarding Usage of various services of Debit cards Male and Female ratio

Male	57
Female	33

1. Is Debit card made change in your expenses behaviour? yes /no

No of respondent	Yes	No
	66	24

2. What kind of user you are?

1. Frequently cash user

2. Frequently debit card user

3. Use cash and debit in same context

Sr. No.	What kind of user you are	Numbers	Percentage
1.	Frequently cash user	35	38.88
2.	Frequently debit card user	23	27.77
3.	Use cash and debit card in same context	32	33.33

In Percentage

3. Benefit for using Debit card:

(1 Strongly Agree, 2 Agree, 3 Neutral, 4 Disagree, 5 Strongly Disagree)

H0: Using debit card benefited to customers

H1: Using debit card not benefited to customers

Sr. No.	Benefit	1	2	3	4	5
1.	Prefer to use my own cash	64	16		10
2.	Don’t want to get into debt	64	26
3.	Easy to Use	38	42	0	10
4.	Convenient	33	54	3
5.	Debit card is acceptable everywhere	18	41		31
6.	Not carrying cash every time	10	65	0	15
7.	Safe	56	32	2
8.	Low fees and charges	18	57		15
9.	Loyalty point	29	51	10
10.	Status symbol	14	20	32	24
11.	Don’t prefer not to carry Cash	3	70	10	7
12	After purchasing product get cash back offer	29	47	9	5
13	After transaction get print statement	75	15

ONEWAY h1 By Gender

ANOVA
Benefit for using Debit card
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	.000	1	.000	.015	.904
Within Groups	2.900	88	.033
Total	2.900	89

F table=3.9201

F calculated <F table, H0 null hypothesis is accepted

Using debit card benefited to customer.

ONEWAY h1 By Income

ANOVA
Benefit for using Debit card
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	.133	3	.044	1.382	.254
Within Groups	2.767	86	.032
Total	2.900	89

Ftable=2.6802

F calculated <F table, H0 null hypothesis is accepted

Using debit card benefited to customer.

INTERPRETATION:

In Chhattisgarh, most of people don’t want to get into debt; they use their own money available in their account. Major benefit of using Debit card is: It is safe, after withdrawn customer get print statement (help to manage money), Convenient and easy to use.

4. Problem faces by customer while using Debit card.

H0: Customers faces problem while using debit card

H1: Customers are not faces problem while using debit card

Sr. No.	Problem	1	2	3	4	5
1.	ATM Machine out of Service	22	39		24	5
2.	ATM Machine out of Cash		61		20	9
3.	Card Gets Blocked		21	0	59	10
4.	ATM Transaction without Cash Receipts	10	42		33	5
5.	ATM machine of my bank is not appropriate location		15		57	18
6.	Limit for withdrawn amount	70	13		7
7.	Debit card was damaged/ lost		21		49	20
8.	Forgot Debit card pin numbers	2	22		56	10
9.	Stores/places where Debit card is not accepting	9	28		19	34
10.	Long queue outside Single ATM machine	39	27	12	12
11.	No E-channel facility (deposit of cash)	21	52	2	15

ONEWAY h2 By Gender

ANOVA
Problem customers facing while using debit card
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	.073	1	.073	.467	.496
Within Groups	13.716	88	.156
Total	13.789	89

F table=3.9201

F calculated <F table , H0 null hypothesis is accepted.

Customers are facing problem while using debit card.

ONEWAY h2 By Income

ANOVA
Problem customers facing while using debit card
	Sum of Squares	df	Mean Square	F	Sig.
Between Groups	.258	3	.086	.546	.652
Within Groups	13.531	86	.157
Total	13.789	89

F table=2.6802

F calculated <F table, H0 null hypothesis is accepted.

Customers are facing problem while using debit card.

INTERPRETATION:

Limited withdrawn amount is major problem of Debit card holder followed by long queue outside ATM machine, cash not available at ATM machine and no facility of depositing of cash.

5. Usage of Debit cards in different segment

Sr. No.	Segments	1	2	3	4	5
1.	Grocery	16	21	4	49
2.	Petrol Pump		5	2	83
3.	Restaurant		15	11	64
4.	Medical		59		26	5
5.	Retail Stores	5	65	0	15	5
6.	Hospital		56		15	19
7.	Jewellery		61		31	7
8.	Travels		51		9	30
9.	Cloths		18		61	11
10.	Electronic items		2		36	52
11.	Fight Ticket booking		60		25	5
12.	Railway Ticket booking	4	36	5	45
13.	Online shopping	2	36		12	40

INTERPRETATION:

Usage of debit card is more in retail store followed by flight ticket booking, Medical, travels, railway ticket booking and online shopping. Least used at petrol pump and Restaurant.

CONCLUSION:

This paper concluded that Debit card is an important service which is served by banks. Customer uses debit card to withdrawn cash from ATM machine and for card payment at point of sale. Customers uses debit card because they want to use their own money available in their account. Major benefit of using Debit card is: It is safe, after withdrawn customer get print statement (help to manage money), Convenient and easy to use. As the services of ATM and number of ATM is increasing day-by-day, and simultaneously, the number of ATM users is also increasing but major problem Debit card holder were faces was limited withdrawn amount, long queue outside ATM machine, cash not available at ATM machine and no facility of depositing of cash. Use of debit card at point of sale(POS)is strategic goal for banks. Usage of debit card is more in retail store followed by flight ticket booking, Medical, travels, railway ticket booking and online shopping. Least used at petrol pump and Restaurant.

REFERENCES:

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Received on 08.12.2015 Modified on 24.12.2015

Asian J. Management; 7(1): Jan. –March, 2016 page 17-22

DOI: 10.5958/2321-5763.2016.00003.2