PLASTIC MONEY IN INDIA

Presented by-

Shivam Mishra

10116048 E&CE

WHAT IS PLASTIC MONEY ?o Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes.

o Different forms-

1. Cash cards.

2. Credit cards.

3. Debit cards.

4. Pre-paid cards.

5. Store cards.

and many more……

TRANSACTIONS

• At present 87% of the entire plastic money

transaction is done through credit cards and debit cards collectively….

• Consumers spend nearly 50,000 crore annually through credit cards which is expected to grow at 50% in the next 4-5 years.

USES

•Purchase of air, rail and road tickets for travelling.•For settlement of hotel bills.•For cash withdrawals.•For payment of bills(hotel,electricity,water,puchase etc.)•For online shopping.•Refilling of fuel in vehicles.•Payment of insurance premiums.

Credit cards

Issuing bank logo EMV chip on "smart cards" Hologram Credit card number Card brand logo Expiration Date Card Holder Name contactless chip

STATISTICS•Out of the 87% of the total usage of plastic money accounted by credit cars and ATM cum debit cards-

Travel and hotel bills along with dining account for nearly 25-35 % of the total purchases

Jewellery purchase accounts for a staggering 10-11 %.

Apparel purchase 8-10%.

Consumer durables 6-7%

RAW NUMBERS Spending through credit cards increased from 11,691 crore to 22,128 crore.

Spending through ATM cum debit cards increased from 8,065 crore to 11,691 crore.

However total number of credit cards declined from 19 mn in June 2010 to 18 mn in June 2011.

In contrast total number of debit cards increased from 190 mn in June 2010 to 249 mn in June 2011(25% rise).

RAW NUMBERS II