banking project

PROJECT ON

“BUSINESS ASPECTS IN BANKING AND INSURANCE”

SUBMITTED BY

SACHIN THOMASBACHELOR OF MANAGEMENT STUDIES

DIV-C, ROLL NO-165ACADEMIC YEAR 2013-2014

SUBMITTED TO

PROF. ZEENAT SHAIKH,JOSHI-BEDEKAR COLLEGE,

MUMBAI UNIVERSITY

CERTIFICATE

This is to certify that this project report

entitled “Business Aspects in Banking and Insurance Project on Credit Cards of Axis bank and ICICI bank” submitted to Joshi-Bedekar College , is a bonafide record of work done by “Sachin Thomas ” under my supervision from “18-07-2013 ” to “ 21-08-2013”.

Signature Mrs. Zeenat Shaikh

Countersignature

B.M.S Department, Joshi-Bedekar, College

Place- ThaneDate-21-08-2013

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher who gave me the golden opportunity to do this wonderful project on the topic- Credit Card: Axis bank and ICICI bank , which also helped me in

doing a lot of Research and I came to know about so many new things. I am really thankful.

Secondly I would like to thank all employees of Axis and ICICI banks who helped me a lot in finishing this project within the limited time.

I am making this project not only for marks but to alsoincrease my knowledge.

THANKS AGAIN TO ALL WHO HELPED ME.

CONTENTSSr.no INDEX Page no

1 Aim2 Introduction3 What is a credit card?4 Who can be a creditcard holder?5 Particulars displayedon credit cards6 What are the different

types of credit cardsprovided by your bank?7 What are the interestand charges on theabove mentioned typesof credit card?8 What types of benefitsor services areprovided by yourinstitution to yourcredit card customers?9 What security measuresare being adopted byyour institution forsecurity of yourcredit card products?

10 What are theconditions for fuelsurcharge refund?11 On what basis do youprovide credit limitto your credit cardcustomers?

12 Do You provide balance transferfacility?13 Do you provide revolving creditfacility?14 Do you provide EMI facility?

• AIMThe main aim of this project is to do a comparision between the credit card products of Axis bank and ICICIbank.

• INTRODUCTION The development of plastic money is one of the recent Phenomenon's in the banking sector. Plastic money is a charge card. It is a direct charge against the limit

sectioned. It is a debt instrument issued by some specialized companies. It is one step forward towards cashless and cheque less society. The operation is through electronic funds transfer {EFT} installations and inter-bank network. Credit cards are key to the opening of bank accounts for daily payments by the cardholders. Credit card has been rightly called "PLASTIC MONEY". The objective is to provide convenience and security. It eliminates cash transactions, and protectsfrom the danger of pick pocketing a lot of cash. There is usually interest free credit for 30 to 45 days.These plastic cards have the photo identity and holderssignature embossed on the card. It also has the issuingbanks name and validity period of the card. The bank issuing the credit card knows well the customer and hiscreditworthiness. Basically, the use of credit cards helps the holder to take the advantage of the two essential aspects of the financial services functions:

• Transmission of payments• The granting of credit.

1.WHAT IS A CREDIT CARD?A credit card is a card or mechanism which enables to purchase goods,travel and dine in a hotel without making immediate payments. Theholders can use the cards to credit from banks unto 45 days. The creditcard relieves the consumer from the botheration cash and ensuressafety. It is a convenience of an extended credit without formality.Thus, credit card is a passport to, SAFETY, CONVENIENCE, PRESTIGEAND CREDIT.

• WHO CAN BE A CREDIT CARD HOLDER?The general criterion applied is a person spendingcapacity and not merely his income and his wealth. Theother criterion is the worthiness of the client and hisaverage monthly balance. Most of the banks have clearout the norms for giving the credit cards.I. A person who earns a salary of Rs. 60,000/- per

annum is eligible for a card.II. A reference from a banker and the employers of the

applicant is insisted upon.III. He should have a savings current account in the

bank.IV. His assets and liabilities on a particular date are

reported to bank.

V. A statement of annual or monthly income.VI. He is considered credit worthy upon to certain

limit depending upon his income, assets andexpenditure. The eligible customer is asked to fillin application form giving the details of accountnumber , name , address , income , wealthstatus and a proof of his income/wealth etc.

• PARTICULARS DISPLAYED ON THE CREDIT CARDSEvery credit card bears the following particulars:

• NAME OF THE CUSTOMER: Every card displays thename of customer. It should be spelled correctly.In case, it does not, the customer can contactthe customer service cell/helpline and get thenecessary correction done. This facility isprovided free of cost by the bank.

• 16-DIGIT CARD NUMBER : A unique 16 digitnumb0er is allotted to every customer/cardholder.

• VALIDITY DATE : The card mentions the periodthrough which it is valid. The card is usuallyvalid from the it is received by the customerunto and including the last day of the monthindicated on the card. After the card has to berenewed.

• THE VISA HOLOGRAM AND THE VISA LOGO: Thehologram and the logo ensure that all theestablishments throughout the world displayingthe visa logo will accept the card.

• NAME OF THE ISSUING BANK: The card indicateson the top the name of the issuing bank.

• SIGNATURE PANEL: The back of the card containsthe signature panel. The customer must put hissignature on the signature panel to preventmisuse by any other person. This identifies thecard holder. Signature on the panel would implythat card holder has given his consent to abideby the terms and conditions governing the use ofthe credit card. The card is valid is only ifsigned.

• MAGNETIC STRIP: The black magnetic strip

contains important information in encoded fromand needs special handling. The card should notbe kept in an area where there is a continuousmagnetic field. It should not be left on the topthe television. Set or near any electronicappliance. The card should be kept away from heatand direct sun light.

• PIN (PERSONAL IDENTIFICATION NUMBER): Eachcard holder is issued a password or pin to enableuse of the card for accessing his/her cardaccount on the ATM and internet and also foravailing any privilege, benefit or service thatmay be offered by bank on the card. The pin iscommunicated to the cardholder entirely athis/her risk who shall not disclose the pin toany person and shall take all possible care toavoid its discovery by any person. The cardholder shall be liable for all transactions madewith the use of the pin whether with or withoutthe knowledge of the cardholder

• What are the different types of credit cards provided by your bank?

• AXIS BANK :• Infinite Credit Card

• Signature Wealth Credit Card

• MY Wings Credit card

• MY Choice Credit Card

• MY Zone Credit Card

• MY Business Credit Card

• Miles & More Credit Card

• Corporate Credit Card

• Titanium Smart Traveler Credit Card

• Platinum Credit Card

• Insta Easy Credit Card

• Trust Chemists Credit Card

• Shriram Credit Card

• ICICI BANK :• ICICI bank Diamant Credit Card

• ICICI bank Sapphiro Credit Card

• ICICI bank Rubyx Credit Card

• ICICI bank Coral Credit Card

• Jet Airways ICICI bank Sapphiro Credit Card

• Jet Airways ICICI bank Rubyx Credit Card

• Jet Airways ICICI bank Coral Credit Card

• ICICI bank British Airways Premium CreditCard

• ICICI bank HPCL Platinum credit Card

• ICICI bank Instant Platinum credit Card

• ICICI bank Visa Signature Credit Card

• ICICI bank Platinum Identity Credit Card

• ICICI bank Ascent American Express CreditCard

• ICICI bank British Airways Classic CreditCard

• ICICI bank Platinum Credit Card

• ICICI bank Titanium Credit Card

• ICICI bank Instant Titanium Credit Card

• ICICI bank Instant Gold Credit Card

• ICICI bank Future Gold Credit Card

• ICICI bank HPCL Gold Credit Card

• ICICI bank Preferred Credit Card

• ICICI bank Classic Credit Card

• ICICI bank Affinity Credit Card

• ICICI bank EMI Credit Card

• ICICI bank Value for money Credit Card

• What are the interest and charges on the above mentioned types of credit card?

• AXIS BANK:Charges Privée

Infinite Credit Card

Wealth Signature Credit Card

SignatureCredit Card

Standard JoiningFee

Nil Nil Nil

Standard Annual Fee

Nil Nil Nil

Standard Add-on Card Joining Fee

Nil Nil Nil

Standard Add-on Card Annual Fee

Nil Nil Nil

Finance Charges (Retail Purchases & Cash)

2.95% per month (41.75% per annum)


2.95% permonth (41.75% per annum)

Cash Withdrawal Fees

2.5% (Min.Rs 250) ofthe Cash Amount

2.5% (Min.Rs 250) ofthe Cash Amount

2.5% (Min. Rs 250) of the Cash Amount

Fee for Cash Payment

Rs. 50/- Rs. 50/- Rs. 50/-

Card Replacement(lost or stolen or re-issue)

Waived Waived Waived

Emergency Card Replacement Fee

As per VISA

As per VISA

As per VISA

when overseas (through VISA)

Global Customer AssistanceServices (GCAS).

Global Customer AssistanceServices (GCAS).

Global Customer Assistance Services (GCAS).

Duplicate Statement Fee


Overdue Penalty or Late Payment Fee

Rs. 300 ifTotal Payment Due is up to Rs. 2000Rs. 400 ifTotal Payment Due is between Rs. 2001 -Rs. 5000Rs. 600 ifTotal Payment Due is Rs.5001 or more

Rs. 300 ifTotal Payment Due is up to Rs. 2000Rs. 400 ifTotal Payment Due is between Rs. 2001 -Rs. 5000Rs. 600 ifTotal Payment Due is Rs.5001 or more

Rs. 300 if Total Payment Due is upto Rs. 2000; Rs.400 if Total Payment Due is between Rs. 2001 - Rs. 5000; Rs.600 if Total Payment Due is Rs. 5001 or more.

Over Limit Penalty

3% of the over limitamount (Min. Rs 500)

3% of the over limitamount (Min. Rs 500)

3% of theover limit amount (Min. Rs 500)

Charge slip Retrieval Fee orCopy Request Fee


Outstation Cheque Fee


Cheque return ordishonour Fee or

Auto debitReversal Bank

A/c out of Funds

Rs 300 Rs 300 Rs 300

Surcharge onpurchase or

cancellation ofRailway Tickets

Asprescribed

byIRCTC/Indi

Asprescribed

byIRCTC/Indi

Asprescribe

d byIRCTC/Ind

anRailways

anRailways

ianRailways

Fuel TransactionSurcharge

2.5% oftransaction amountor Rs. 10,whicheveris higher(Refundedfor fueltransactions betweenRs. 400and Rs.4000)

2.5% oftransaction amountor Rs. 10,whicheveris higher(Refundedfor fueltransactions betweenRs. 400and Rs.4000)

2.5% oftransaction amountor Rs.10,

whicheveris higher(Refundedfor fueltransacti

onsbetweenRs. 400and Rs.4000)

Foreign CurrencyTransaction Fee

3.50% ofthe

transaction value

3.50% ofthe

transaction value

3.50% ofthe

transaction value

Mobile Alertsfor Transactions


HotlistingCharges


Balance EnquiryCharges


Charges Platinum Advantage

Platinum Titanium/Gold

Silver

Standard Joining Fee

Rs 1000 Rs. 500 (Waived on spends of Rs. 5000 within 45 days of card setup), for cards setup on or after February 07, 2011

Nil, for cards setup before February 07, 2011

Rs. 250 (Waived on spends of Rs. 2500 within 45 days of card setup), forcards setupon or afterFebruary 07, 2011

Nil, for cards setupbefore February 07, 2011

Nil

Standard Annual Fee

Rs 500 Rs.200 (from 2nd year onwards. Waived on spends of Rs.100000 in thepreceding year), for cards setup on or after February 07, 2011

Nil, for cards setup before February 07,

Rs.100 (from 2nd year onwards. Waived on spends of Rs. 50000 in the preceding year), for cards setupon or afterFebruary 07, 2011

Nil, for cards setup

Nil

2011 before February 07, 2011

Standard Add-on Card Joining Fee

Nil Rs 100, for cards setup before February 07, 2011

Nil, for cards setup on or after February 07, 2011

Rs 100, forcards setupbefore February 07, 2011

Nil, for cards setupon or afterFebruary 07, 2011

Nil

Standard Add-on Card Annual Fee

Nil Nil Nil Nil

Finance Charges (Retail Purchases & Cash)


2.95% per month (41.75%per annum)

Titanium: 3.25% per month (46.78% perannum)

Gold: 2.95%per month (41.75% perannum)

3.25% per month (46.78%per annum)

Cash Withdrawal Fees


2.5% (Min. Rs250) of the Cash Amount


2.5% (Min. Rs250) of the Cash Amount

Fee for CashPayment

Rs. 50/- Rs. 50/- Rs. 50/- Rs. 50/-

Card Replacement (lost or stolen or re-issue)

Waived Waived Waived Waived

Emergency Card Replacement Fee when overseas (through VISA)

As per VISA Global Customer Assistance Services (GCAS).


As per VISAGlobal Customer Assistance Services (GCAS).


Duplicate Statement Fee


Overdue Penalty or

Rs. 300 if Total Payment


Rs. 300 if Total


Late PaymentFee

Due is up to Rs. 2000Rs. 400 if Total Payment Due is betweenRs. 2001 - Rs.5000Rs. 600 if Total Payment Due is Rs. 5001 or more

Due is up to Rs. 2000Rs. 400 if Total PaymentDue is between Rs. 2001 - Rs. 5000Rs. 600 if Total PaymentDue is Rs. 5001 or more

Payment Dueis up to Rs. 2000Rs. 400 if Total Payment Dueis between Rs. 2001 - Rs. 5000Rs. 600 if Total Payment Dueis Rs. 5001or more

Due is up to Rs. 2000Rs. 400 if Total PaymentDue is between Rs. 2001 - Rs. 5000Rs. 600 if Total PaymentDue is Rs. 5001 or more

Over Limit Penalty

3% of the overlimit amount (Min. Rs 500)

3% of the over limit amount (Min. Rs 500)



Charge slip Retrieval Fee or Copy Request Fee


Outstation Cheque Fee


Cheque return or dishonour Fee or Auto debit Reversal Bank A/c outof Funds

Rs 300 Rs 300 Rs 300 Rs 300

Surcharge onpurchase or cancellationof Railway Tickets

As prescribed by IRCTC/Indian Railways

As prescribedby IRCTC/Indian Railways

As prescribed by IRCTC/Indian Railways

As prescribedby IRCTC/Indian Railways

Fuel Transaction Surcharge

Waived (For fuel transaction tobe between Rs 400 and Rs 4000)

Waived (For fuel transaction to be betweenRs 400 and Rs4000)

Waived (Forfuel transactionto be between Rs 400 and Rs 4000)

2.5% or Rs 10whichever is higher

Foreign Currency Transaction Fee

3.50% of the transaction value


3.50% of the transactionvalue


Mobile Waived Waived Waived Waived

Alerts for TransactionsHotlisting Charges

Nil Nil Nil Nil

Balance Enquiry Charges


• ICICI BANK:ICICI Bank Card Variant

Joining Fee(1st year)

Annual Fee(1st year)

Annual Fee(2nd yearonwards)

SupplementaryCard Fee(Annually)

ICICI Bank Sapphiro CreditCard

25,000 Nil 3,500* Nil

ICICI Bank SignatureCreditCard

25,000 Nil 2,000 Nil

ICICI Bank SingaporeAirlinesVISA Platinum Credit Card

Nil 6,000 6,000 Nil

ICICI Bank British AirwaysPremium Credit Card Account

Nil 7,000 7,000 Nil

ICICI Bank British AirwaysClassic

Nil 3,500 3,500 Nil

Credit Card AccountICICI Bank Rubyx Credit Card

5,000 Nil 2,000** Nil

Jet Airways ICICI BankSapphiro American ExpressCredit Card

5,000 Nil 5,000250

Jet Airways ICICI BankSapphiro Visa Credit Card

5,000 Nil 5,000 250

Jet Airways ICICI BankRubyx American ExpressCredit Card

2,500 Nil 2,500 250

Jet Airways ICICI BankRubyx Visa Credit Card

2,500 Nil 2,500 250

Jet Airways ICICI Bank CoralAmerican Express CreditCard

1,250 Nil 1,250 250

Jet Airways

1,250 Nil 1,250 250

ICICI Bank CoralVisa Credit CardICICI Bank Ascent AmericanExpress (R) Credit Card

4,000 Nil 1,000 Nil

ICICI Bank KingfisherAirlines MasterCard WorldCredit Card

Nil 5,000 2,500 Nil

ICICI Bank Kingfisher AirlinesMasterCard Platinum CreditCard

Nil 2,000 1,000 Nil

ICICI Bank Kingfisher AirlinesMasterCard Titanium CreditCard

Nil 500 500 Nil

ICICI Bank Platinum IdentityCredit Card

2,000 Nil 750 Nil

ICICI Bank Coral Credit

1,000 Nil 500*** Nil

Card ICICI Bank HPCLPlatinumCredit Card / ICICI BankHPCL Titanium Credit Card

Nil 500 500**** Nil

ICICI Bank Platinum ChipCredit Card

Nil 199 99**** Nil

Finance charges:

ICICI Bank Card Variant

Overdue InterestonExtended Credit

Interest on Cash Advances

Monthly Rate

AnnualRate

MonthlyRate

AnnualRate

All Cards except for thecards mentioned below

3.40% 40.80% 3.40% 40.80%

ICICI Bank Instant Platinum Credit Card / ICICI Bank Instant Gold Credit Card /Fixed DepositInstant CreditCard

2.49% 29.88% 2.49% 29.88%

ICICI Bank EMICredit Card

1.49% /

1.99%17.88% /

23.88%1.49% /1.99%

17.88% /23.88%

Jet Airways ICICI Bank Credit Cards

3.50% 42% 3.50% 42%

• What types of benefits or services areprovided by your institution to your creditcard customers?• AXIS BANK:

Exclusive Benefits:

Ø Petrol Surcharge RefundØ eDGE Loyalty rewards programØ eShop CardØ Comprehensive Insurance CoverØ Mobile AlertsØ Global AcceptanceØ Global Emergency AssistanceØ Interest Free period*Ø Revolve FacilityØ Balance TransferØ Cash Advance FacilityØ Auto Debit FacilityØ EMI FacilityØ Joining & Annual FeeØ E-statementsØ Limit EnhancementØ Cash WithdrawalØ Balance transfer

ICICI BANK:• Petrol Surcharge Refund• PAYBAK rewards program• Comprehensive Insurance Cover• Mobile Alerts• Global Acceptance• Global Emergency Assistance• Interest Free period*• Revolve Facility• Balance Transfer• Cash Advance Facility• Auto Debit Facility• EMI Facility• Joining & Annual Fee• E-statements• Limit Enhancement• Cash Withdrawal• Balance transfer

• What security measures are being adopted by your institution for security of your credit card products?• AXIS BANK:

Highest Level of Security : EMV certified Chipembedded Card, which gives you the highest levels ofsecurity.Comprehensive insurance cover: Comprehensiveinsurance cover including Air Accident Cover, Travelrelated covers, Credit Shield and Lost Card Liabilityto put mind at ease.

• ICICI BANK:

Highest Level of Security : EMV certified Chipembedded Card, which gives you the highest levels ofsecurity.Comprehensive insurance cover: Comprehensiveinsurance cover including Air Accident Cover, Travelrelated covers, Credit Shield and Lost Card Liabilityto put mind at ease.

• What are the conditions for fuel surcharge refund?• AXIS BANK:Fuel Surcharge Refund :Enjoy fuel surcharge refund on spends at all fuel stations across India with your Axis Bank Credit Card (valid on transactions between Rs. 400 and Rs. 4000 only. Service Tax charged on fuel surcharge is non-refundable. No reward points are earned on fuel transactions).

• ICICI BANK:Fuel surcharge refund:

2.50% of transaction value or Rs.10 whichever ishigher. Surcharge waiver of 2.5% of transaction value on HPCLpetrol pumps on select cards (this offer is valid on a maximum transaction of ` 4,000, when the payment is made by swiping the card on ICICI Merchant Services swipe machines).Surcharge waiver of 2.5% of transaction value on all petrol pumps on select cards. Cost of fuel will be recovered along withcharges and taxes levied if any by the acquiringbank at actual.

• On what basis do you provide credit limit to

your credit card customers?• AXIS BANK:

The 'Credit limit' is the maximum amount you can spendor borrow using your Credit Card in one billing cycle.This limit is based on various factors relating to yourincome. The credit limit can be changed on the basis ofyour payment and transaction history.• ICICI BANK:

The 'Credit limit' is the maximum amount you can spendor borrow using your Credit Card in one billing cycle.This limit is based on various factors relating to yourincome. The credit limit can be changed on the basis ofyour payment and transaction history

• Do you provide revolving credit facility?• AXIS BANK:The repayment options available to you are as below:Pay only the Minimum Amount Due (5% of the bill amount subject to a minimum of Rs 100) and remaining amount can be paid in subsequent monthsPay the total amount due.Pay any amount ranging from the minimum amount due to the total amount due.

• ICICI BANK:When you receive your bill, you have the flexibility of selecting any of the following payment options:Pay the total amount due.Pay only the minimum amount due.Pay any amount ranging from the minimum amount due tothe total amount due.Should you opt for either of the last two options, then the unpaid amount due is carried forward to the next billing period. This is referred to as the revolving credit facility.

• Do You provide balance transfer facility?• AXIS BANK:

Transfer your existing balance from other credit cards to your Axis Bank Credit Card at a special rate of interest and save substantially.

There are two exciting plans to choose from:Balance Transfer Plan @ 0%0% interest rate for 3 months*2.95% interest after 3 months2% processing fee or Rs. 199 (whichever is higher)

• ICICI BANK:

The ICICI Bank balance transfer facility allows youto transfer your outstandings from your other-banks’ credit cards to your ICICI Bank Credit Card at interest rates as low as 0%.

Various attractive schemes like the ‘0% Balance Transfer offer' and the ‘Life Time Balance Transferoffer’, along with zero documentation and crisp draft delivery make the ICICI Bank Credit Card balance Transfer programme the best in the market.

• Do you provide EMI facility?• AXIS BANK:EMI Facility : EMI feature on Axis Bank Credit Card gives you the convenience of paying for High Value Credit Card transactions in easy EMIs.• ICICI BANK:"EMI on Call" means choosing to pay for retail transactions made on ICICI Bank credit card in Instalments and is provided / agreed to be providedby ICICI Bank, at its sole discretion, to the card member to the extent of amounts not exceeding the available cash-limit / credit-limit.The card member shall repay the facility and interest thereon in EMIs. The interest shall be at such rate which has been indicated by ICICI Bank tothe card member at the time of making the offer forthe facility and as also as communicated to the card member. The interest calculation will start from the time the transaction has been booked for the facility. The amount of the EMIs together with other details of the Facility (including rate of interest) shall be also communicated to the card member at his/her mailing address.

REFERENCES:

• www.axisbank.com

• www.icicibank.com

• Pooja Rohida,Assistant Manager,Axis Bank , (Ambarnath East) Branch.

• Deepak Kalani,Privilege Banker,ICICI Bank, (Ambarnath East) Branch.

• www.wikipedia.org

paste the visiting cards of the two banks over here.

banking project

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