1Research Scholar, CMJ University, Shillong, Meghalaya.
2The Business School, Bhadarwah Campus, University Of Jammu, Jammu.
Online published on 13 August, 2014.
The use of plastic money in India is in strong surge. During April-June 2011–12, the credit card spending rose by 30% against Rs16, 948 crore last year wherein debit card spending has increased by 45% compared to Rs8, 065 crore last year, as per the data released by Reserve Bank of India. The distribution of plastic money has increased due to the fact that banking sector has become more aggressive. Moreover, duplication of users is an important area of concern for the industry which can exaggerate the number of active users. The present paper makes an attempt to understand the after effects of recession on plastic money industry and its impact on consumer preferences. The paper duly investigates the acceptability of the cards among the Indian consumer and the factors influencing the card choice. Primary data was collected through a well-structured questionnaire with the sample size of 150 respondents in Jammu region. Variables related to demographics such as age, income level and occupation were selected for the study. The results indicate that the customers are shifting from credit card to debit card over few years. The study also revealed that for cost effective banking transactions, banks are now concentrating on making their customers shift their debit card transactions from ATM to Point of sale.
Consumer Response, Plastic Money, Credit card, Debit card, Consumer Perception
