Acknowledgement Declaration Executive Summary
Introduction
Profile
Research Objective Introduction to the FSP’s Of J&K Bank
Credit Cards
Debit Cards
Point of Sale Machine
E-Banking
Mutual Funds
Questionnaire
Research Methodology
Finding and Analysis
SWOT Analysis
Recommendations
Bibliography
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EXECUTIVE SUMMARY In few years JAMMU & KASHMIR BANK financial services has emerged as a tool for ensuring one‟s financial well-being. P.O.S machines, CREDIT cards, DEBIT cards etc. have helped families tap into the success of Indian industries. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds and using various services. The trick for converting a person with no knowledge of services to a profitable customer is to understand which of the potential customers are more likely to buy credit card, POS machine, debit card and to use the right argument in the sales process that customers will accept as important and relevant to their decision. This project gave me a great learning experience and at the same time it gave me enough scope to implement my marketing ability in the sale of the services offered by the bank. This report will help to know about the various financial services offered by the J&K bank and the people response to them. The report throws some light on some factors that lead to the preference of J&K bank services over other banks. I hope the research findings and conclusions conclu sions will be of use.
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INTRODUCTION TO THE INDIAN BANKING SYSTEM
The Indian Banking system has a large geographic and functional coverage. Presently the total asset size of the Indian banking sector is US$ 270 billion with a branch network exceeding 66,000 branches across the country. Revenues of the banking sector have grown at 6 per cent CAGR over the past few years to reach a size of US$ 15 billion. While commercial banks cater to short and medium term financing requirements, national level and state level financial institutions meet longer-term requirements. This distinction is getting blurred with commercial banks extending project finance. The total disbursements of the financial institutions in 2001 were US$ 14 billion. BANKING
Banks are the institutions where those who have some savings can keep their money in the form of deposits & those who need money borrow money on payment of interest with certain conditions that assure recovery of the borrowed money. The rate of interest charged by the bank from its borrower is usually higher than what it pays to the depositor. In addition to the safe money keeping of depositor and money lending to the borrower a bank also helps people in many kinds of money transactions. In brief the main functions of bank are:
Receiving money from the depositors Lending money on demand Transferring money from one place to another Receiving payment for public utility services such as telephon e bills, house tax etc Renting safe deposits locker for safe custody of valuables valuab les Helping travellers and tourist by providing travellers cheques and foreign cu rrency etc.
The various types of account provided by the bank are as follows:
Saving account Current account Term or fixed deposits Recurring deposits
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PROFILE Incorporated in 1938 as a limited company. Governed by the Companies Act and Banking Regulation Act of India. Regulated by the Reserve Bank of India and SEBI. Listed on the National Stock Exchange (NSE) and Bomba y Stock Exchange (BSE) 53 percent owned by the Government of J&K. Rated "P1+" by Standard and Poor - CRISIL connoting highest degree of safety. Four decades of uninterrupted profitability and dividends.
HISTORY OF J&K BANK
Jammu & Kashmir bank was founded on October 1, 1938 and it commenced business from July 4, 1939. The Jammu and Kashmir bank limited has been the first of its nature and composition as a state owned bank in the country. The bank was established as a semi state bank with participation in capital b y state and the public under the control of state government. The bank had to face serious problems at the time of independence when out of its total of ten branches two branches of Muzaffarabad a nd Mirpur fell to the other side of the line of control ( now Pak occupied Kashmir) along with cash and other assets. Following the extension of central laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the provisions of Indian Companies Act, 1956. Today J&K bank is one of the fast growing banks in India with the network of more than 539 branches/ offices spread across the country offering world class banking products/ services to its customers. The bank recently bagged three very prestigious awards for following fair business practices and commitment to social obligations.
MISSION OF THE BANK Mission have been set to remain financially strong, sound, growth oriented and profitable bank with main focus towards providing convenient, reliable, cost-effective and personalized services to all its customers and to become globally competitive and foray into new sectors compatible with the business of banking. The key objective of the bank shall be to provide “Value Maximization” to all its shareholders that are customers and employees. The bank shall also further strive to strengthen its national presence and adopt developmental role in the country with a particular emphasis on J&K Bank.
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VISION OF THE BANK
The vision of the bank is to be financially sound, profitable, growth and technology oriented bank committed to buildings and maximizing sustainable value for all its shareholders, customers and employees. In its endeavor to attain the goal visualized, the ban k is laying maximum emphasis on the effective system of corporate governance, with the view to improve company‟s image, efficiency, effectiveness, and satisfying the public expectations of fairness and ethical conduct. The new identity of J&K Bank is a visual representation of the bank‟s philosophy and business strategy. The three colored squares represent the regions of Jammu, Kashmir & Ladakh. The counter form is created by the interactions of the squares is a falcon with outstretched wings-a symbol of power and empowerment .The synergy between the th ree regions propels the bank towards new horizons. Green signifies growth and the renewal, Blue represents stability and unity and Red represents energy and p ower. All these attributes are integrated and assimilated in the white counter form.
UNIQUE CHACTERISTICS OF THE BANK
Private sector Bank despite government holding 53 per cent of equity. Sole banker and lender of last resort to the Government of J&K. Plan and non -plan funds, taxes and non-tax revenues routed through the bank.
Salaries of Government officials disbursed by the Bank.
Only private sector bank designated as agent of RBI for banking.
Carries out banking business of the Central Government.
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HIGHLIGHTS
The fastest growing bank with 439 branches across the country.
Over 98% of the business computerized
Internet banking, SMS and mobile banking provided.
Anywhere banking, telebanking and swift banking provided.
ATMs connected globally to all master networked ATMs.
Mobile ATM services available first of its kind in northern India
JK Bank global access debit card cirrus and maestro enabled.
Own credit card
CUSTOMER SERVICES
The Bank continued its emphasis on maintaining high standards of services to its customer. In this direction the Bank introduced various hi-tech and customer friendly products during the year, providing value added service to achieve customer satisfaction. Customer complaints received are dealt promptly and expeditiously. The Bank is a member of the Banking codes and Standards board of India and has adopted „Code of Bank‟s commitment to customer‟, a voluntary code of providing protection and „Right to know‟ to the customer. The Bank has established a 24 x 7 help desk address customer queries and the desk is slated to be converted into a full-fledged call center in 2007-08. The Bank is keenly pursuing for ISO 9000 certification for its customer service.
RESEARCH OBJECTIVES
To study the availability and visibility of financial services products of J&K bank.
To study the awareness of the F.S.P‟s of the J&K bank.
To study the consumer‟s behavior regarding to the F.S.P‟s offered by J&K bank.
To find out the role played by J&K bank in marketing their F.S.P„s. 6
Role played during summer internship at J&K bank
During my summer training at J&K bank ltd. Financial services division zonal office Jammu (central), besides undergoing my project “availability and visibility of F.S.P. of J&K bank ltd.”I had an opportunity to be a part of the then ongoing credit cards debit cards, P.O.S. machines, e banking and mutual funds. During the then ongoing merchant acquisition drive assigned the task to bring P.O.S.machine credit cards, debit cards, business by visiting targeted merchants establishments and convince them to install P.O.S. machine at their establishments. Though it was a very tough job but still I was able to meet a few and finally 4 of them got convinced to install the P.O.S. and also helped the bank in selling credit cards and debit cards by awaring people during the marketing. The schedule of my six week training was that: During the first week I had to gather the knowledge of P.O.S.machine, credit cards, debit cards and e-banking In the second and the third week I was directly involved in the sales team of the bank and used to make people aware about the F.S.P.‟s in the various branches of the bank like LAKHDATA BAZAAR, SHALAMAR, PATEL NAGAR, SMGS, UPPER GUMAT, RESIDENCY. In the fourth week I was assigned the task of the sale of P.O.S.machines, credit cards debit cards to the different customers and seek the apprehensions incurred by the merchants and help them in the best possible way. During the end of my summer internship I had conducted a survey about the factors that are more critical in J&K bank‟s success and preference in J&KState and assess its availability. This whole experience and real market exposure help me to mould myself to get acquaint to the market conditions and made me strong to face and overcome market challenges and enhance my skills. I strongly feel that this would certainly help me in my upcoming future.
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INTRODUCTION TO FINANCIAL SERVICES DEPARTMENT OF THE J&K BANK
FINANCIAL SERVICES DEPARTMENT OF THE J&K BANK
The Financial Services Department of Zonal Office Jammu has the responsibility of coordinating between the branches branch es – customers customers – head head office (CHQ, SRINAGAR).The department deals with all third party products and markets them through its respective branches. The Department deals with: 1. Insurance: (J&K bank ties up with METLIFE for life insurance & BAJAJ Allianz for non -life insurance.) 2. Debit cards 3. Credit cards 4. POS machine 5. Mutual Funds 6. E-banking
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INTRODUCTION TO CREDIT CARD
CREDIT CARD
A credit card is part of a system of payments named after the small plastic card issued to the users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay of these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to „revolve‟ their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are a re the shape and size specified by the ISO/IEC 7810 standard as ID-1.
Features of credit cards:
It is a piece of plastic about 3.5x2 3 .5x2 inches in size. Some of o f the features of credit cards are as below: LOGOS:
The card carries logos of the card association (Visa, MasterCard) as well as that of the issuing bank (J&K, ICICI, HDFC and so on ) in the front of the card. NUMBER:
The card number is embossed in the front. This is usually a 16-digit number. The first number symbolizes the major industry. Banking industry cards usually start with 4,5 or 6. The first six digits identify the issuing organization. The next nine n ine digits denote the individual‟s account number. The last digit is a check digit. NAME:
Also embossed on the front of the card in the name of the cardholder. EXPIRY DATE:
The date till which the card ca rd is valid is embossed on the front of the card.
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MAGNETIC STRIPE:
There is a magnetic stripe (called magstripe) running through the length on the card on the reverse. This contains the identification information of the card which is transmitted during a transaction. CVV NUMBER:
This is a three digit number that appears on o n the reverse of the card after the 16-digit card number. CONTACT NUMBER:
On the reverse of the card the issuing bank‟s contact numbers are printed. The cardholder can call these
numbers for any card related queries. SIGNATURE:
There is a space below the magnetic stripe where the cardholder is mandatory to sign. Secure code:
A Master card secure code is also provided to the customers of the bank. It is a very important because it protects their customers at that time when they are doing online shopping. As we know that credit card can also be mis-utilized by anyone so in order to prevent their customers, they have to fill their secure code in the Gate Way of the J&K Bank during online shopping.
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Using J&K Bank Credit Card is extremely simple. After making transaction or availing of the service provided by the Merchant Establishment, present J&K Bank Credit Card. Upon processing J&K Bank Card transaction, the Merchant will request to customer to sign a charge slip (refer to the image alongside). This contains details about the amount to be billed to J&K Bank Credit Card. If Customer wish to leave a tip or miscellaneous charge, they can do so by filling in the same on the charge slip. After filling in this section, in the interest of their own safety, J&KBank recommend that customer write out the total amount in the charge slip before signing. Please ensure that customer sign on the charge slip in the same way they have signed on the reverse of the Card. The Merchant Establishment will return the copy of the bill(s) and the charge slip along with customer Card. Customer has to match the amounts before leaving the establishment. It is recommended to retain customer copy of the charge slip and the corresponding bill till such time as the amount is reflected in their Card billing statement. Customer Monthly Credit Card Statement is a statement of accounts with a summary of transactions made through their J&K Bank Credit Card for the previous month, giving the details of the transactions made through J&KBank Card, during the period.
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One Time Password (OTP) for IVR transactions:
An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will need to obtain an OTP before every IVR payment transaction. It is required at the time of making payment on the IVR, where you will be prompted to enter it along with the other details like your credit-card number, card expiry date and CVV number. Effectively January 1, 2011, as mandated by Reserve Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additional measure of security for IVR transactions (Interactive Voice Response transactions are those transactions which are made over the phone where certain Credit-Card details are to be entered into an automated system in order to make payment to a merchant for the purchase of goods/services) through their Credit Cards – the OTP (One Time Password) generation. SALIENT FEATURES:
20-50 days credit free period. Revolving credit facility on paying of minimum payment due in the billing period. Hassel free credit facility at competitive rate of interest. Cash withdrawal facility upto 20% of the total credit limit. Loyalty programmes. MasterCard secure code enabled credit cards. J&K bank lets you shop securely on-line with J&K bank MasterCard credit card. This service through a simple checkout process, confirms your identity when you make purchases on the internet. 24x7 customer assistance at J&K bank helpdesk.
TYPES OF CARDS
BLUE EMPOWERMENT CARD SILVER EMPOWERMENT CARD GOLD EMPOWERMENT CARD
ELIGIBILITY: ANNUAL INCOME:
For salaried - Above RS.80,000.00 For self-employed - Above RS. 1,50,000.00
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CREDIT LIMIT
BLUE EMPOWERMENT CARD SILVER EMPOWERMENT CARD GOLD EMPOWERMENT CARD
25000.00 50000.00 100000.00
RATE OF INTEREST: 2.25% per month. ADVANTAGES:
They allow Customer to make purchases on credit without carrying around a lot of cash. This allows them a lot of flexibility. They allow convenient remote purchasing-ordering/shopping online or by phone. They allow accurate record keeping by consolidating purchasing into a single statement. Under some circumstances, they allow holders to withhold payment for merchandise which proves defective. They are cheaper for short term borrowing – interest is only paid on the remaining debt, not the full loan amount. Many cards offer additional benefits such as additional insurance cover o n purchases, cash back, air miles and discount on holidays.
DISADVANTAGES: Customer may become an impulsive buyer and tend to overspend because of the ease of using credit card. Cards can encourage the purchasing of goods and services they cannot really afford.
Credit cards are a relatively expensive way of obtaining credit if customer don‟t use them carefully, especially because of the high interest rates and other costs. Lost or stolen card may result in some unwanted expenses and inconvenience. The use of a large number of credit cards can get holders even further into debt. Using a credit card, especially remotely, introduces an element of risk as the card details may falls into the wrong hands resulting in fraudulent purchases on the card. Fraudulent or unauthorized charges may take months to dispute, investigate and resolve.
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INTRODUCTION TO DEBIT CARD/ATM CARD
DEBIT CARD A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account in favour of the payee's designated bank account. The card can be used as an alternative payment method to cash when making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. In many countries the use of debit cards has become so widespread that their volume of use has overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases. However, unlike credit cards, the funds paid using a debit card are transferred immediately from the bearer's bank account, instead of having the bearer pay back the money at a later date. Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cash back facilities to customers, where a customer can withdraw cash along with their purchase.
FEATURES OF DEBIT CARD:
Pin Based -Maestro / Cirrus Debit Card. Provides online access to savings or current account. Accepted at all domestic as Well as International MasterCard, Maestro, Cirrus Enabled ATM's and Point Of Sale locations. Accepted at National Financial Switch (NFS) ATM's. No Transaction Fee at JK Bank ATM's. No Transaction Fee on purchases.
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DETAILS OF CARDS OFFERED BY J&K BANK Salient Features
Pin Based- Maestro/Cirrus Debit Cards Provides online access to savings or current account Accepted at all Domestic as Well as International MasterCard TM, Maestro TM, Cirrus TM, Enabled ATM‟s and Point Of Sale locations Accepted at National Financial Switch (NFS) ATM‟s No Transaction Fee at JK Bank ATM‟s No Transaction Fee on Purchases
Empowerment Credit Cards Customer Benefits
20-25 day credit Free Period Revoloving Credit Facility on paying of minimum payment due in the same billing periods Hassle free credit facility at competitive rate of interest Cash withdrawal facility upto 20% of total credit limit Loyalty programme MasterCard® SecureCodeTM enabled Credit Cards J&K Bank MasterCard Credit Card. This service through a simple checkout process confirms your identity when we make purchase on internet. 24 Hours Customer Assistance at JK Bank HelpDesk
Types of Cards
Acceptability
Blue Empowerment Card Silver Empowerment Card Gold Empowerment Card All Merchant Establishments like shops who honor MasterCard™ Credit Cards. All ATM's which accept MasterCard™ Credit Cards. Annual Income
Eligibility
For Salaried -Above 80,000.00 For Self Employed -Above 1,50,000.00
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Documentation
Credit Limits
Income Proof Address Proof Identity Proof Blue Empowerment Card- Upto Silver Empowerment Card-Upto Gold Empowerment Card-Upto 1,00,000.00 2.25% per month
Rate of Interest
Annual Fee
300
Renewal Fee
250
Add-on Card Fee
150
Late Fee
100
One Time Password(OTP) for IVR transactions
25,000.00 50,000.00
Effective January 1, 2011, as mandated by Reserve Bank of India (RBI), Credit-Cardissuing Banks in India have introduced an additional measure of security for IVR transactions (Interactive Voice Response transactions are those transactions which are made over the phone where certain CreditCard details are to be entered into an automated system in order to make payment to a merchant for the purchase of goods/services) through their Credit Cards – the OTP (One Time Password) generation. What is an OTP? An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will need to obtain an OTP before every IVR payment transaction.
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INTRODUCTION
TO
POINT OF SALES/SERVICE MACHINE
POINT OF SALE/SERVICE MACHINE
A point of sale/ service (pos) machine is used to conduct retail transactions. It can provide many services, including credit card processing, check reading and cash transactions, depending on the model. These devices can be found virtually anywhere, from grocery stores to gas stations. The technology used in pos machines results in a speedy and secure transaction. Point of sale/service (pos) machine or checkout is the location where a transaction occurs. A “checkout” refers to a pos terminal or more generally to the hardware and software used for checkouts, the equivalent of an electronic cash register. A pos terminal manages the selling process by a sales person accessible interface. The same system allows the creation and printing of the voucher.
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Operating Systems:
Microsoft offers POS platforms that are embedded with various versions of Microsoft Windows operating systems. The use of Windows-based graphical user interfaces inc reases the accessibility of the POS for all users, due to the familiarity of the platform. In addition, Windows POS technology can seamlessly integrate into an existing network that is already Windows based. POS platforms available for Macintosh computers include Light Speed and Checkout.
Features:
POS machines offer the ability to automate many tasks that have historically required human oversight. These machines can scan credit cards, authorize the charge, and even accept a digital signature. POS machines can even synchronize with the local area network of the business, and automatically update balances and inventory with each completed transaction. Peripherals:
There are many peripheral devices that are needed to ensure that the POS machine can work with the utmost efficiency. Price scanners connect to the POS machine, sometimes wirelessly, and are used to read the barcode on an item. Keypads and touch-screen displays also connect to the POS machine, allowing users to enter their personal identification numbers and signatures to access funds. Function:
The POS machine is used to improve the efficiency of retail transactions. A POS machine can be automated, as in a self-service checkout lane in the grocery store, or it can merely augment the actions of a checkout worker. The POS machine uses a price scanner to check the price of an item, and a credit card reader, a check scanner, or a cash drawer to accept funds in an exchange.
HIGHLIGHTS:
All types of Visa & MasterCard based cards are accepted. Can Extend American Express Card Acceptance. Quick Merchant Payment. Merchant Helpdesk and Onsite Support. Competitive Commission Rates. No hidden Charges. POS machine costing to bank is Rs. 9,000 Cash back facility. 19
Charges:
One time installation charges is Rs. 500 Commission on per card type transaction basis.
Various type of Commission is charged on the bases of card. If a card swiped in POS machine is of J&K Bank then rate of commission charged from merchant is 1.3 % of the total transaction done during the month and if the card swiped in POS machine is other than J&K Bank then the rate of commission charged by bank is 1.5% of the total transaction. Bank also has provided with the cash back facility to the merchants. In case of on-us cards if the total sales is more than Rs.1, 00,000 then the bank will redeem 0.2% to their merchants so the merchant have to pay 1.1% instead of 1.3% and in case of off – us cards if the total sales is more than Rs. 2, 00,000 then the merchant have to pay 1.3% instead of 1.5% of the total sales.
Requirements for installing POS machine:
Copy of Registration Certificate under Shops and establishments Act. OR Copy of CST/SST registration certificates. Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power of Attorney (in case of partnership firms or companies). Copy of Rent receipt or telephone bill or electricity bill. Copy of Company Financials or Income Tax Return. Proof of signature of the authorized signatory. Passport / Voter ID Card/Driving License / PAN Card of the sole proprietor or anyone of the partners / directors.
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PoS Machine Installation Merchant Relationship Form
The Jammu & Kashmir Bank Ltd. Corporate Headquarters, M.A. Road, Srinagar 190 001 Important Instructions Please fill all the information in block letters. Please keep the following documents along with the application form
Copy of Registration Certificate under Shops and establishments Act. OR Copy of CST/SST registration certificates. Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power of Attorney (in case of partnership firms or companies). Copy of Rent receipt or telephone bill or electricity bill. Copy of Company Financials or Income Tax Return. Proof of signature of the authorized signatory. Passport / Voter ID Card/Driving License / PAN Card of the sole proprietor or anyone of the partners / directors. For filling in information regarding the nature Of business please refer to the following list: Arts/Handicrafts/Sculptures Furniture stores Automobile Service Center/Garages Handicrafts Automobile Spares Hard ware store Automobiles Home Appliances/Consumer Durables Automotive Tyre Stores Hotels Bakeries Jewellery/Marbles/Watches Barber & Beauty Shop Leather Goods Book store Novelty/Gift Shop Candy/Nut/Confectionary Stores/Dry Fruits opticians College/University Photo Developing/Labs Computers/Comp. Peripherals Readymade Garments Cosmetics/Beauty/Health Clubs, Restaurant Crystal/Glassware /Kitchenware Sanitary Utilities Dental/Medical Lab Shoe Stores Departmental Stores Stationery Drug Stores/Pharmacy Tailors Electric Utilities Telecommunication Equipments
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Electronics Fuel Dealers/Coal/Petrol
The Jammu & Kashmir Bank Ltd. Corporate Headquarters, M.A. Road, Srinagar 190 001
Textile Tours & Travel Operators Others (specify)
Branch
PoS Machine Installation Merchant Relationship Form
1. Legal Name of Business Concern (as appearing in registration certificate, partnership deed or certificate of incorporation)
2. Marketing Name (as used in the name of the shop etc.)
3. Type of Business (Please refer list)
4. Nature of Ownership (Tick as applicable) Sole Proprietorship Franchisee
HUF
Partnership Firm
Limited Company
Others (Specify)
Address of Business Establishment Building Name
Road Name/No.
Land Mark
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Govt. Owned
Trust
City
Pin code
State
Phone (With STD code)
Mobile
E - mail
6. PAN Number
TIN Number
7. Shop Ownership Details (Tick as applicable) Owned Leased 8. Name of Proprietor/Partners/Managing Director/Directors/Karta (IN BLOCK LETTERS) (1) (2) (3) (4) (5)
9. Address of Proprietor/Managing Director/Karta/Any one of the Partners (IN BLOCK LETTERS) Residential Address Building Name Road Name Land Mark City
Pin code
State
Phone (With STD code)
Mobile
E – mail
10. Name of Principal Contact First
Middle
11. Existing J&K Bank Relationship Existing Account Number 23
Last
Type of Account
Relationship since
year‟s
months
12. Relationship with other banks (if any) Name of the Bank Address of the Bank
Account Number
Relationship since
year‟s
months
13. Existing PoS Machine Details (if applicable) Date of Commencement of Business
Operation in the same premises since
Credit Cards already accepted (Tick as applicable): Visa
MasterCard
American Express
If others please specify
Annual Business Turnover (in figures) Annual Turnover on (in figures) Visa/MasterCard (s) Estimated average per (in figures) Transaction value
(in words) (in words) (in words)
Merchant Application, Debit Authorization and Declaration Merchant Application I/We wish to enroll under J&K Bank Ltd's Merchant program and hereby agree to be bound by the terms and conditions of the Merchant Establishment Agreement appended to this Merchant Relationship Application Form. I/We confirm that all information provided to J&K Bank in this form is correct and accurate. I/We certify that the person signing this application and ME agreement has full authority to do so and thereby binds us to the Merchant Establishment Agreement. J&K Bank and/or their representatives may contact our bankers or any other source to obtain information with regard to the information provided in this form. Debit Authorization I/We authorise you to credit/debit our Current/Cash Credit/Merchant Account with J&K Bank Ltd. For all transaction, fees and charges as per the Merchant Agreement with J&K Bank Ltd.
Our existing Account Number is 24
I/we do hereby authorise the bank to debit without any prior notice our current/cash credit account and raise overdraft thereto for settlement of POS (point of sale) installation charges / charge back accounts / excess payments made, if any, at any time, by the bank and / or any other amount(s) becoming incidental thereto during the course of card acquiring business through the POS terminal (s) of J&K Bank Ltd. By virtue of this authority I/We on behalf of said establishment owe no authority to challenge the bank's absolute discretion to this regard in any court/forum etc.
Declaration I/We agree to abide by the below mentioned terms and conditions in addition to already signed agreement for installation of EDC Machine. For all transactions above Rs. 7500. I/We will follow the following additional validation. The cashier would request the customer to produce a photo identification document. The cashier would tally the Name on the Photo ID document with that on the card and verify resemblance with the photo ID document. The cashier would note down the ID details in the reverse of the Merchant copy of the charge slip or on the invoice or in our internal systems. These details will be stored, for the period charge-slips are required to be stored. This procedure would be followed for all VISA, MasterCard and American Express cards, irrespective of Credit, Debit or Prepaid and for both domestic and international cards.
Authorised Signatory / Stamp
Signatory name
Designation
Signature of Authorised Signatory as appearing herein above is hereby attested
Signature of Branch Head
Name & Code
For Office use only (To be filled in by Branch)
1. Legal Name of Business Concern (as appearing in registration certificate, partnership deed or certificate of incorporation
2. Marketing Name (as used in the name of the shop etc.)
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3. Type of Business (Please refer list)
11. Name of Principal Contact First
Middle
Last
12. Name of Proprietor/Partners/Managing Director/Directors/Karta (IN BLOCK LETTERS)
Residential Address Building Name Road Name Land Mark City State Mobile
Pin code Phone (With STD code) E – mail
14. Existing J&K Bank Relationship Nature of Account Recommendations
Existing Account Number
Documents obtained (Tick as Applicable)
1. Copy of Registration Certificate under Shops and establishments Act. OR 2. Copy of CST/SST registration certificates. 3. Copy of Partnership Deed, Memorandum of Association, Articles of Association, Power of Attorney 4. Copy of Rent receipt/telephone bill/electricity bill. 5. Copy of Company Financials or ITR. It is hereby certified that
The agreement has been executed with notary attestation on Non-judicial stamp paper of Rs. 20 or as applicable as per local law. Authorised signatory proof is enclosed. The Merchant is maintaining account with us for more than last six months and account is running satisfactory or the merchant is/was maintaining account with other bank for
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more than last six months and account is running satisfactory, statement for more than last six months has been obtained and kept on record along with account opening form. The application has been duly filled in. All the documents as per KYC Norms have been obtained and kept on record with account opening form.
I undertake to raise overdraft in the account of M/E upon the instructions of Card Issuance & Acquiring Department, if balance is not sufficient in the Account of ME for fulfilling the charge back/s or any other charges etc.
Signature of Branch Head
Name & Code
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INTRODUCTION TO E-BANKING
E-BANKING Internet Banking Features
Available for both Retail and Corporate users. SMS Banking Statement of Accounts. Funds Transfer.
Corporate/Retail Internet Banking :
Both corporate and retail clients can access their accounts anytime and from any location via the World Wide Web. Presently following services are available to the corporate clients:
Access/view of accounts Transfer of Funds between self linked accounts maintained with ou r bank. Transfer of Funds from their own accounts to external accounts (e.g. Vendor payment) Transfer of Funds from external to own accounts (e.g. dealer collection). Transfers of Bulk upload. Transfer to non J & K Bank account holders through RBI NEFT/RTGS. Transfer of non-standard bills. Utility bill payments.
Ecommerce facility for JK Bank E-banking customers:
J & K Bank Secure Payment Gateway, to provide ecommerce facility to the e-banking customers. Tie up with M/S Avenues India Pvt. Ltd. (ccevenue) and M/S BillDesk, for extending ecommerce facility to the e-banking customers. The facility shall be available to only such e-banking users, which have been enabled by the Bank for Bill Payment facility.
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E-Banking users intending to purchase goods online through the Ccavenue shopping site shall be required to:
o
o o o
o
Logon to the Master Merchant‟s (M/S Avenues India Pvt. Ltd.) website http://world.ccavenue.com/content/clients.jsp., Select the item to be purchased Select e-banking as the mode of payment. Select the J & K Bank and the system will take the user to the J & K Bank‟s e banking site prompting him to enter his e-banking user-id and password. After entering the Bank‟s e-banking site the customer will be able to pay the amount of bill by debit to its own account.
M/S BillDesk - is a useful service that provides customers a single point of contact for all your payment needs. Our customer can pay bills and make other payments online. Instead of writing a cheque each time, now our customers can use any device connected to the Internet (computer, kiosk, etc) and make payments with the click of a mouse. In effect, through BillDesk customers can now make All Payments at a Single Location .
E-Payment of Tax for JK Bank E-banking customers:
NSDL (National Securities Depository Ltd.), the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market. Tax Information Network (TIN), a repository of nationwide tax related information, has b een established by National Securities Depository Limited on behalf of Income Tax Department of India (ITD). Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. E-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the banks certified by NSDL, CBDT and RBI for collection of Direct TAX. J&K Bank has been added to the list. Also, e payment of Indirect Tax for J&K State Govt. has been added to our services.
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SMS Banking:
Be in touch with your account on the move. Features:
Balance Enquiry Transaction enquiry Cheque Status Enquiry
ATM Services Features:
A network of more than 325 ATMs deployed across the country. Accepting Maestro / Cirrus / MasterCard / VISA / NFS ATM / debit / credit cards.
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INTRODUCTION TO MUTUAL FUNDS
Mutual Funds
J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual Fund products.
Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years, banks in India have emerged as the biggest distributors of financial products. This has helped the banks to capture and retain their huge client base and simultaneously adding a steady stream of fee based income. Mutual Funds have become an attractive proposition for investors in the current context and for J&K Bank it will be a good investment option to have in our product portfolio. This shall be an important step towards converting the bank branch into a financial supermarket addressing all the financial needs of the customers thus helping the bank retain the customers within its f old.
Moreover the branch can augment its fee based income the Bank aims to match to industry standards. The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as and when the AMC comes up with the same.
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QUESTIONNAIRE
Name: ____________________________________ Address: - ___________________________________ 1. Do you know, what are the Financial Services Products in a bank? a) Yes b) No c) Some specify ………… 2. Do you know about credit card, if no then what is the reason? a)
Less marketing
c) Not interested
b) Lack in personal interaction d) other specify……….
3. If yes, then from where you got the information? a) Bank b) Internet c) Relative
d) Other
4. How long you are using the credit card? a) 0-6 months b) 6-12 months c) 1-3 years
d) More than 3 yrs
5. Which banks credit card do you prefer? a) J&k b) Axis c) Icici
d) Other
6. Do you use credit cards for online shopping? a) Frequently b) Occasionally c) Rarely
7.
d) No
Do you know about “one time password”? a) Yes b) No 32
8.Do you know about secure code? a) Yes b) No 9.Do you know about debit card? a) Yes b) No 10. If no, then what is the reason? a) Less marketing b) Lack in personal interaction c) Not interested
d) other specify……….
11. a)
Do you have any debit card? Yes b) No
12.
If no, would you like to buy it?
a) 13. a)
Yes
b) No
If no, then what is the reason? Prices b) Usability
c) Awareness
d) Other
14. a)
Do you know about Point Of Sale machine? Yes b) No
15. a)
Do you have P.O.S.? Yes
16. a)
If no, then what is the reason? Awareness b) Prices
c) Availability 17. a)
d) other specify
Which banks P.O.S. do you have? AXIS b) J&K
c) ICICI 18. a)
b) No
d) HDFC
Are you satisfied with the after sale services? Yes b) No 33
19. a)
Are you satisfied with the charges? Yes b) No
20. a)
Do you get bill statement on time? Yes b) No
21. a)
Marketing practices by the J&K Bank is………….? Excellent b) Satisfactory
c) Poor
22. Give suggestions/complaints that how can we serve you better ………………………………………………………………………………. ……………………………………………………………………………….
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OBJECTIVES OF THE STUDY
The primary objective of our study is to analyze Availability and Visibility of the Financial Service Products (FSP‟s) of the J&K Bank in attaining that whether peoples are aware about
J&K Bank products or not. The main objectives are: Availability and Visibility of the Financial Service Products (FSP‟s) of the J&K Bank
To find out the factors which are responsible for unawareness or rejections about J&K Products
To check the satisfaction level of the preferred and classic customers regarding Financial Product Services (FSP‟s)
To analyze customers expectations from Bank.
RESEARCH METHODOLGY: Primary Objective:
To finding out the Availability and Visibility of the Financial Product Services (FSP‟s) of J&K
Bank. This was done by interacting with people through the medium of Questionnaires and Direct interviews being taken in some cases. The satisfaction greatly depends on the quality of service, the interests being provided on various banking facilities and the payback period for taking any sort of loan. One of the important factors affecting customer expectations is the presence of on-line banking facility being incorporated by the bank in its very basic functioning infrastructure. The project helped in developing an insight about the Actual level of satisfaction and the Expected level of satisfaction. The various grievances that came forwarded during the survey and the various things which the customers wanted the bank to incorporate in its structure is attached in the report afterwards in the form of Recommendations. Through the project, the competitive strategies being followed by other banks were also analyzed.
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Sampling Technique:
The problem definition can be said to be the quite essential part of the research process; as it determines precisely, what the managerial problem is and the type of information that the research can generate to help the problem before conducting the field work. It is better to decide upon the method/technique of data collection. Generally, there are two techniques of data collection: 1. Census technique 2. Sample technique or convenient sampling A census is a complete enumeration of each and every unit of population where as in a sample only a part of the universe is studied and conclusion about the entire universe is drawn about that basis. The census method is costlier and more time consuming as com-pared to sampling method but the result are near representatives than sample method. The availability of resources, time factor degree of accuracy desire and scope of the problem enable us to apply sample technique.
DATA COLLECTION
The objectives of the project are such that both the primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers & websites etc. 1. Primary Data:
The primary data was collected to measure the customer satisfaction regarding J&K bank. The primary data was collected by means of direct personal interview method through structured
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questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the customer‟s satisfaction level can be
measured and consumer can enter his response easily 2. Secondary Data:
The purpose of collecting secondary data was to achieve the objective of studying the recent trends and development taking place in financial Service Departments.
Sampling Design:
It is very difficult to collect information from every member of a population. As time and costs are the major limitations that the researcher faces. Definition of Population:
Our population consisted of the preferred and classic customers of the J&K Bank. The reason for choosing the classic and preferred customers as our population was that the FSP‟s services are not only meant for such classes only and hence the normal customers were also considered. Sampling Method:
Our sample consisted of 100 personal interviews. We structured our personal interviews on the basis of a sample random sample. Sample size:
Because of the various constraints imposed on our project work, especially time and cost, our sample size was limited to 100. This also enabled us to obtain an equal number of respondents in each stratum Sampling plan:
The research was conducted mainly at the branch and further we met certain customers personally at their offices after getting the proper references. 37
Questionnaire design:
We designed our questionnaire based on the information acquired from our background research. We also used our own personal judgment when determining which type of questions might be the most applicable to the information we were trying to obtain. The questionnaire consisted of 21 questions with options against each and one open ended question; at the end, for suggestion. In designing the format of our questionnaires, we used the standard procedure to formulate a questionnaire. Collection procedure: Personal interviews were conducted using individual questionnaire for each
respondent. The responses were recorded directly onto each questionnaire. Tools of analysis:
After collecting the data has been analyzed through various statistical tools and techniques. The unwisely data should necessarily be condensed into few manageable groups and tables for further analysis. Thus it helps to classify the raw data into some purposeful and usable categories. The tools used are tables and pie charts. Limitations of the Study
It is said, “Nothing is perfect” and there would be few shortcomings in this project also. Sincere efforts have been made to eliminate discrepancies as far as possible but few would have remained due to limitations of the study.
Time seemed to be our most limited resource. To conduct a comprehensive research project in a two month period is difficult.
The absence of appropriate funding limited the extent of our study. With addition-al financial resources, the scope of our study could have been enlarged, resulting in a more representative study.
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Interviewer bias could not be avoided as in case of many surveys open ended questions involve the use of probing techniques that increase interviewer bias. However, as our study did not use many open ended questions, the extent of the bias was reduced.
Some of the respondents gave ambiguous replies for certain questions or omit-ed the responses to some of them. The interpretation of such responses become-s difficult and could generate wrong result
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FiNDINGS AND ANALYSIS 1.
Do you know, what are the Financial Services Products in a bank?
Other 14% No 20% Yes 66%
Analysis:- Above diagram shows the position of the J&K bank in the market where 66%
people out of 100peoples may know about the financial service products of J&K Bank whereas, 20% peoples and 14% peoples doesn’t know or doesn’t have an exactly about FSP’s of J&K Bank.
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2.
Do you know about credit card, if no then what is the reason?
Other 8%
Less Marketing 23%
Not Interested 54% Lack in Personal Interaction 15%
Analysis:- Above diagram shows the reason of not having or preferring the J&K Bank Financial services products(FSP’s) which shows the bank failure in exposing or creating awareness about their products.26 out of every 100 peoples doesn’t have J&K Bank Credit Cards. Under a survey I find that mostly people doesn’t have an interest in our products whereas 23% and 15% peoples doesn’t have our card because of our less marketing and lack in personal interactions respectively. Rest 8% have many other factors..
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3.
If yes, then from where you got the information?
Other 24% Bank 38%
Relative 27%
Internet 11%
Analysis:- This graph shows that from where the awareness about our products they got. According to survey, Out of every 74 peoples, mostly peoples may get to know about our products was through bank (38%) and Relatives/ Family (27%) and 24% people may information from many other sources and only 11% of people may get aware through internet.
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4.
How long you are using the credit card?
More Than 3 Years 16%
0-6 Months 30%
1-3 Years 27% 6-12 Months 27%
Analysis:- Above diagram shows about the holders of the credit card in which out of every 74 peoples mostly credit card holders was holder from0-6 months(30%) and 6-12 months(27%) and 27% of peoples may holder from last 1-3 years and there was only 16% peoples have credit cards 3 years older.
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5.
Which banks credit card do you prefer?
Other 13%
J&K Bank 38%
ICICI Bank 22%
Axis Bank 27%
Analysis:- In comparing our products with other bank’s credit card then the best competitor of J&K Bank(38%) is Axis bank with 27% on credit cards share. ICICI Bank is also having a good reputation and provides best service in the market holding 22% market share in credit cards.
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6.
Do you use credit cards for online shopping?
No 19%
Frequently 24%
Occasionally 19%
Rarely 38%
Analysis:- This diagram depicted that out of every 74 peoples who having an credit cards mostly 38% holders use card’s rarely for online shopping whereas 24% holders frequently use their cards for online shopping and 19% holders each use their cards for occasionally and not use respectively.
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7.
Do you know about “one time password”?
No 38% Yes 62%
Analysis:- Above diagram shows that 62% card holder out of 74 peoples may aware about the One Time password Service and vice-versa. 38% holder’s doesn’t know about One Time Password.
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8.
Do you know about secure code?
No 35% Yes 65%
Analysis:- From the above diagram, I may analyze that 65% of people out of every 74 peoples know about the secure code service provided by the bank and 35% peoples doesn’t know about that.
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9.
Do you know about debit card?
No 24%
Yes 76%
Analysis:- After an survey, I questioned 100 peoples about the debit cards from those76% peoples know about debit cards/ATM and 24% peoples don’t aware about the bank Debit card Service. JK Bank shows the good performance on debit card services.
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10.
If no, then what is the reason?
Other 17% Less Marketing 50%
Not Interested 25% Lack In Personal Interaction 8%
Analysis:- Out of 15 peoples of every 100 persons who doesn’t know about debit card, they said that they doesn’t know about debit cards because of lack in less marketing techniques (50%) and 25% peoples says that they are not interested in J&K bank Debit card service. And only 8% percent says that due to lack in personal interactions they are unaware about J&K Bank Debit cards
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11.
Do you have any debit card?
No 40% Yes 60%
Analysis:- Above graph shows that, 60% peoples of out 100 peoples have debit cards whereas 40% peoples doesn’t have debit cards. If bank provide more better service than there may be rise in the holders of debit cards.
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12.
If no, would you like to buy it?
Yes 40% No 60%
Analysis:- Above graph shows that, 60% of peoples out 40 doesn’t want to buy J& K bank Debit/ ATM Card whereas 40% peoples want to buy a debit card.
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13.
If no, then what is the reason?
Other 25%
Prices 25%
Awareness 17%
Usability 33%
Analysis:- Peoples doesn’t want to buy Debit/ATM Card because they mostly doesn’t know how to operate that (33%) and 25% and 17% are lacking behind due to the pricing and awareness about the debit card of the J &K Bank and there 25% other factors shows the various other factors which restricted peoples buying J&K Bank Debit/ATM Card
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14.
Do you know about Point Of Sale machine?
No 40%
Yes 60%
Analysis:- This diagram shows that out of every 100 peoples, 60% of peoples of total are fully aware about the products of PoS Machine and 40% peoples were not aware about exactly what PoS Machine is.?
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15.
Do you have P.O.S.?
Yes 36% No 64%
Analysis: - As getting Popularity in the Market, J&K Bank fail to earn a maximum or healthy share of the market. Only 36% of every 100 peoples have installed in their Shops/Mall/Restaurants/Hotels. Maximum of market share i.e. 64% peoples doesn’t install our PoS Machine.
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16.
If no, then what is the reason?
Awareness 19%
Other 25%
Prices 22% Avalibility 34%
Analysis:- After getting to know the approximate value of peoples who doesn’t have installed the J&K Bank PoS machine. Mostly peoples doesn’t installed J&K Bank PoS Machine because it is difficult for them to install that because heavy formalities needed for that and 22% peoples thinks that charges are high or rate of interest are high and 19% peoples doesn’t know exactly about the PoS machine.
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17.
Which banks P.O.S. do you have?
ICICI Bank 11%
HDFC 11%
Axis Bank 39%
J&K Bank 39%
Analysis:- The Best Competitor of the Bank is the Axis Bank who equally competition with J&K Bank with equal share i.e. 39% each of PoS machine market. HDFC and ICICI Bank equally having 11% of market share not having so much good service
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18.
Are you satisfied with the after sale services?
Sales
No 39% Yes 61%
Analysis:- Mostly(61%) holder of PoS Machine are satisfied with the after sale services provided by the bank whereas 39% holders are not satisfied by the after sale services provided b y the bank
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19.
Are you satisfied with the charges?
Yes 44% No 56%
Analysis:- above diagram show that 56% of peoples are fully dis-agree with the charged imposed by the bank on dealing with the PoS Machine whereas 44% says that they have no complaints against bank regarding charges mentioned by them.
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20.
Do you get bill statement on time?
No 44% Yes 56%
Analysis:- Regarding doing survey. I concluded that 56% of peoples are satisfied with billing statements they got on time. Whereas 44% were not comfort with the billing statement they got.
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21.
Marketing practices by the J&K Bank is………….?
Excellent 18% Poor 40% Satisfactory 42%
Analysis:- Above pie-diagram shows about the marketing techniques applied by the bank are good or not. According to this diagram, only 18% of 100 peoples think that J&K Bank Marketing Strategies and services are excellent whereas 42% peop les think that the J&K bank marketing strategies are good and satisfactory and 40% of peoples says that bank marketing strategies are not good. And they have to improve their marketing strategies to manage or hold their existing customers.
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SWOT ANALYSIS Of J&K BANK
SWOT ANALYSIS OF THE J&K BANK
A swot analysis of internal as well as external environment provides a clear picture of what strength & weakness are possessed by the company, what are the various threats & what are the various opportunities available to be grabbed. STENGTHS AND WEAKNESSESS
S.No
Features
PERFORMANCE Major strength Minor stren Major weakne Minor weakne
1.
Company‟s goodwill
2.
Customer satisfaction
3.
Lower interest rates
4.
Wide branch network
5.
Infrastructure
6.
Active service team
7.
Marketing practices
8.
Charges
9.
Advertising
10.
Local staff &culture
11.
ATM‟S
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Opportunities
Attracting dissatisfied customers of other banks.
Expanding reach to rural areas by offering door- to door service.
Providing information to customers about FSP‟s.
Providing better services to the valued customers.
Bringing awareness among the customers for the usage of the services being offered.
Threats
Competition from other banks.
Attractive discounts offered by the competitor banks.
Dissatisfied customers of the bank.
Better interest rates/commission rates available in the market offered by the other banks.
More customer satisfaction provided by the private banks.
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RECOMMENDATIONS
The J&K bank should appoint direct selling agents which has almost become a necessity in modernized banking culture to attract new consumers. J&K bank should device some aggressive marketing strategies to expand its market, for example making association with some great cause or endorsing some celebrity to advertise its various financial services. It can be that Jk bank should use a local personality to advertise its products that seems more appealing to the local people. The financial services like credit cards should be advertise in the various branches of the bank & the customers should be made aware of the services via sms and e-mail. The process cycle should take less time to response in providing Financial Services to the customers so as to increase the customer satisfaction. The JK bank generally pays less heed in providing financial services products to the new customers, where as the competitors like ICICI,AXIS & HDFC bank are . This is an avenue which JK bank should walk. The loyal merchants should be given some more discounts that they would not switch to other vendors. It can be like that the merchant‟s location a small card should be kept depicted about the attractive schemes of the b anks & the benefits of using FSP‟s.
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