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The concept of using a card for purchases was described in 1887 by Edward
Bellamy in his utopian novel Looking Backward. Bellamy used the term credit
The modern credit card was the successor of a variety of merchant credit schemes.
It was first used in the 1920s, in the United States, specifically to sell fuel to a
accept each other's cards. Western Union had begun issuing charge cards to its
frequent customers in 1921. Some charge cards were printed on paper card stock,
The Charga-Plate was an early predecessor to the credit card and used during the
1930s and late 1940s. It was a 2 1/2" x 1 1/4" rectangle of sheet metal, similar to a
military dog tag, that was embossed with the customer's name, city and state (no
address). It held a small paper card for a signature. It was laid in the imprinter first,
then a charge slip on top of it, onto which an inked ribbon was pressed. Charga-
credit cards of today. In some cases, the plates were kept in the issuing store rather
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retrieved the plate from the store's files and then processed the purchase. Charga-
Plates speeded back-office bookkeeping that was done manually in paper ledgers
The concept of customers paying different merchants using the same card was
Club, to consolidate multiple cards. The Diners Club, which was created partially
through a merger with Dine and Sign, produced the first "general purpose" charge
card, and required the entire bill to be paid with each statement. That was followed
Bank of America created the Bank Americard in 1958, a product which, with its
overseas affiliates, eventually evolved into the Visa system. MasterCard came to
received a significant boost when Citibank merged its proprietary Everything Card,
launched in 1967, into Master Charge in 1969. The fractured nature of the U.S.
banking system meant that credit cards became an effective way for those who
were traveling around the country to move their credit to places where they could
not directly use their banking facilities. In 1966 Barclaycard in the UK launched
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There are now countless variations on the basic concept of revolving credit for
In contrast, although having reached very high adoption levels in the US, Canada
and the UK, it is important to note that many cultures were much more cash-
oriented in the latter half of the twentieth century, or had developed alternative
France, Switzerland, and others). In these places, the take-up of credit cards was
initially much slower. It took until the 1990s to reach anything like the percentage
countries acceptance still remains poor as the use of a credit card system depends
overdrafts, some countries, France in particular, were much faster to develop and
adopt chip-based credit cards which are now seen as major anti-fraud credit
devices.
The design of the credit card itself has become a major selling point in recent
years. The value of the card to the issuer is often related to the customer's usage of
the card, or to the customer's financial worth. This has led to the rise of Co-Brand
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and Affinity cards - where the card design is related to the "affinity" (a university,
for example) leading to higher card usage. In most cases a percentage of the value
CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends on the offer's performance in
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the expectations, the customer is satisfied. If the performance exceeds
CUSTOMER EXPECTATIONS
How do buyers form their expectations? From past buying experience, friends' and
However, if the company sets expectations too low, it won't attract enough buyers
(although it will satisfy those who do buy). Some of today's most successful
Longer, buys more as the company introduces new products and upgrades existing
products, talks favorably about the company and its products, pays less attention to
competing brands and is less sensitive to price, offers product or service ideas to
the company, and costs less to serve than new customers because transactions are
routine. The link between customer satisfaction and customer loyalty, however, is
not proportional. Suppose customer satisfaction is rated on a scale from one to five.
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At a very low level of customer satisfaction (level one), customers are likely to
abandon the company and even bad-mouth it. At levels two to four, customers are
fairly satisfied but still find it easy to switch when a better offer comes along. At
level five, the customer is very likely to repurchase and even spread good word of
mouth about the company. High satisfaction or delight creates an emotional bond
with the brand or company, not just a rational preference (For customer satisfaction
surveys, it's important that companies ask the right questions. Frederick Reichheld
suggests that perhaps only one question really matters: "Would you recommend
typically focus surveys on the areas they can control, such as brand image, pricing,
recommend to a friend results from how well the customer is treated by front -line
employees, which in turn is determined by all the functional areas that contribute
to a customer's experienced
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ORIGIN OF THE TERM BANK
The word “bank” is derived from the Italian word “banco”, the Latin word
“bancus” and the French word “banque”, which mean a bench. They are of the
opinion that the medieval European bankers (i.e., money changers and money
lenders) transacted their banking activities, viz., money changing (i.e., exchanging
one currency for another) and money lending, by displaying coins of different
countries, and of different denominations in big heaps on the benches in the market
places. As such, the word “bank” should be associated with Italian word “banco”.
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According to others, the term “bank” is derived from the German word
“banck”, which means a joint stock fund or a common fund (i.e., a heap of money)
rose from a large number of members of the public. They contend that the early
European bankers raised a common fund or heaps of money from the public for the
purpose of financing the needy. As banks deal in common fund or heaps of money
raised from the public, the term “bank” should be traced to the German word
“banck”.
Of these two views, the latter view seems to be more convincing, because the
word ‘bank’ is, generally, associated with an institution dealing in money raised
MEANING OF BANK
deposits from the public, makes the funds available to those who needs them, and
helps in the remittance of money from one place to another. In fact modern bank
performs such a variety of functions that is difficult to give precise and general
definitions to it. It is because of this reason that different economies give different
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DEFINITION OF THE TERM BANK
OR BANKER
Walter Leaf defines a bank as” A person or corporation which holds itself out to
Paget’s definition:
Sir John Paget says, “No person or body corporate or otherwise can be banker
who does not take deposit accounts, take current accounts, issue and pay cheques
and collect cheques crossed and uncrossed for his customers”. He further adds,”
One claiming to be a banker must profess himself to be one, the public must accept
him as such and finally banking should be his main business”. According to this
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1. Acceptance of deposits of money on deposit and current accounts.
they touch almost every aspect of the modern economy. According to Schumpeter,
“The banking system is one of the two key agents (the other being
of banks is as follows:
a) Banks mobilize the small, scattered and idle savings of the people and make
them available for productive purposes. In short, they help the process of
capital formation.
them, banks promote the habit of thrift and savings among people.
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c) By accepting the savings of people, banks provide safety and security to the
e) Banks provide a convenient and economic transfer of funds from one place
to another. Bank drafts or demand drafts are commonly used for remittance
f) Banks help the movement of funds from region whether they are not very
g) Banks influence the rate of interest in the money market. Through the supply
h) Banks help trade and commerce, industry and agriculture by meeting their
financial requirements.
j) Through the process of creation of money, banks acquire control over the
k) Today, banks have attained very great importance. They would not have
manufacture money that has made them very important. In the process of
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linking lenders and borrowers, they manufacture money (i.e. bank money or
credit money) by lending several times the cash deposits they receive.
Thus banks are useful in several ways. We can conclude that a strong and sound
India has a well developed banking system. Most of the banks in India were
Banks and unscheduled Banks. Schedule commercial Banks constitute those banks,
which have been included in the second schedule of Reserve Bank of India (RBI)
Act, 1934. RBI includes only those banks in this schedule, which satisfy the
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Indian banks can be broadly classified into nationalized banks/public sector
nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then
prime minister. The major objective behind nationalization was to spread banking
infrastructure in rural areas and make available cheap finance to Indian farmers.
Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI)
was the only public sector bank in India. SBI was nationalized in 1955 under the
The second phase of nationalization of Indian banks took place in the year 1980.
Seven more banks were nationalized with deposits over 200 crores.
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List of Public Sector Banks in India is as follows:
• Allahabad Bank
• Andhra Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Corporation Bank
• Dena Bank
• Indian Bank
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• State Bank of Indore
• Syndicate Bank
• UCO Bank
• Vijaya Bank
All the banks in India were earlier private banks. They were founded in the pre-
independence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role
in the banking structure. Private sector banking in India received a filip in 1994
when Reserve Bank of India encouraged setting up of private banks as part of its
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policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them
• AXIS Bank
• Bank of Rajasthan
• Dhanalakshmi Bank
• Federal Bank
• HDFC Bank
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• ICICI Bank
• IDBI Bank
• IndusInd Bank
• Karnataka Bank
• YES Bank
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Foreign banks have brought latest technology and latest banking practices
in India. They have helped made Indian Banking system more competitive and
efficient. Government has come up with a road map for expansion of foreign banks
in India.
The road map has two phases. During the first phase between March 2005 and
March 2009, foreign banks may establish a presence by way of setting up a wholly
second phase will commence in April 2009 after a review of the experience gained
after due consultation with all the stake holders in the banking sector. The review
a foreign bank.
• ABN-AMRO Bank
• BNP Paribas
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• Citibank
• Deutsche Bank
• HSBC Ltd
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Corporation Bank, the oldest banking institution in the erstwhile undivided
Dakshina Kannada District of Karnataka and one of the oldest banks in India, was
led by Khan Bahadur, Haji Abdulla, and Haji Kasim Saheb Bahadur. The need to
start this bank was felt because there was no such facility at Udupi, an important
trading centre next to Mangalore in D.K. District. The indigenous banking was
largely in the hands of a few rich private individuals and something had to be done
to provide relief to the common man from the clutches of the money lenders who
held full sway. The first branch of a modern bank established in the district was the
Bank of Madras, one of the three Presidency Banks, which set up its office in
Mangalore in 1868 largely to cater to the business needs of a few British firms
dealing in export of plantation products. Its agent used to visit Udupi once a
postal medium.
To overcome these drawbacks and also to provide banking facilities for Udupi in
Haji Abdulla Saheb made a bold venture to start this institution. What inspired the
founding fathers was the fervour of Swadeshism. For promoting the Bank , the
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Founder President made an appeal saying , " The primary object in forming the
‘Corporation' is not only to cultivate habits of thrift amongst all classes of people ,
without distinction of caste or creed, but also habits of co-operation amongst all
classes. This is ‘Swadeshism', pure and simple and every lover of the country is
"The Canara Banking Corporation (Udupi) Ltd.," as the institution was called then,
started functioning as a ‘Nidhi' with a humble beginning. The initial capital was
Rs.5000/- and at the end of the first day, its resources stood at 38 Rupees - 13
Annas and 2 Pies. The setting up of the Canara Banking Corporation Ltd. seems to
have given a fillip to co-operative Banking and also to regular banking elsewhere
in the district. Between 1909 and 1917, six co-operative banks came into being and
during the decade immediately after the First World War (1914-18) South Kanara
gave birth to as many as eight banks. It is to the credit of this Bank that despite two
world wars, economic depression and stiff competition, the Bank not only quite
survived, but also made satisfactory progress. Having been started at Udupi, the
Bank first branched out by opening a branch at Kundapur in 1923. The second
branch of the Bank was opened in Mangalore at Car Street in 1926. The Bank
stepped into Kodagu District in 1934 by opening its seventh branch in Madikeri. In
1937, the Bank was included in the second schedule of Reserve Bank of India Act,
1934. In 1939, the Bank's name changed from "Canara Banking Corporation
(Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a
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Regional Bank in 1945 when the total number of its branches stood at 28. In the
year 1961, it took over ‘Bank of Citizens, Belgaum.' In the same year, the Bank's
The second change in the name of the Bank occurred in 1972, from ‘Canara
nationalized in 1980 along with 5 other private sector banks. After nationalization,
All-round progress. Started as a common man's bank, it changed with the times to
meet the aspirations of the people but never swerved from its motto- "Sarve Janah
public concern. One of the unique achievements of the Bank is that it has been
paying dividend continuously for the last 98 years since its inception. Today, with
the most modern technology-driven products and services and nationwide branches
& ATMs, Corporation Bank stands tall among the Public Sector Banks in the
country and is hailed as one among the well-managed Public Sector Banks with
excellent track record in all the key parameters of banking. The Bank has the
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Corporation Bank has completed 100 years of its purposeful and fruitful existence
Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation
Day lecture on 12th March, 2005.As a part of the Bank's centenary celebrations, a
number of programmes and projects were planned and executed. As a first step, the
Bank has launched the Corp Kissan Card - debit card tied up with VISA
public library was dedicated to the citizens of Mangalore in DK District, the birth
12th March, 2006. The library building also houses a Numismatic Museum and a
multi purpose hall for intellectual activities. The Bank has also set up libraries in
25 villages and given away scholarship to 100 meritorious students of such villages
Mission Statement
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➢ To become a provider of World - Class Financial Services
Initiatives
➢ To emerge as a Role Model with distinct culture identity, ethical values and
Vision Statement
“To emerge as the most preferred Bank with global standards in financials,
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1. Title of the study: “Customer satisfaction survey of Corporation Bank
credit cards”
exists at present. In social science and business research we quite often use the
term Ex post facto research for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. The research
To find out the level of satisfaction amongst the customer with regard to
To compare the Corporation Bank credit card with other Credit Card \
To find out if there will be an increase the demand for Corporation Bank credit
To suggest the management the ways to improve the service of credit card
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4. Scope of Research:
The study has covered 50 customers of Corporation Bank who are using
Corporation Bank credit cards and are residing in and around Dakshina
Kannada district
5. Relevance of the study: Corporation Bank is one of the oldest public sector
banks in India. Which has been voted as best public sector bank year after year,
But the credit card offered by the bank is one of the latest service offered by the
bank hence it is relevant to study whether the customer are satisfied with the credit
card or not.
a. Time constraints
generalized
1. Collection of data
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A. Primary data:
(a) Questionnaires
B.Secondary data
(a) Books
(b) Internet
Evaluation and comparison of the data with respect to the problem and the
sampling the researcher's judgment is used for selecting items which he considers as
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1. . Age
From table and chart no 5.1 it is evident that 16 % of the credit card holders are
less than the age of 25, 30% are between the age group 25-35,14% are between the
age group 35-45, 32% are between the age group 45-55, and 8% are between the
age group 55 & above. So it can be observed that majority of the credit card
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2. GENDER
From the table and chart no 5.2 it is evident that 76% credit card holders are male
and 24% are female. So it is clear that more number of males possess credit cards
than females
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3. Qualification:
From the table and chart no 5.3 it is evident that 4% respondents of the
Corporation Bank credit card holders are of the qualification of less than 10th
standard, 68% respondents are graduates and 26% are post-graduates. So it is clear
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4. Martial Status
From the above table and chart no 5.4 it is clear that 32% of the credit card holders
are single, 4% are divorced and 64% are married. So it is evident that more than
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5. Time period since respondents are maintaining an account with
Corporation Bank
From the table and chart no 5.5 it is evident that 22% of the credit card holders are
whereas 78% are maintaining an account with Corporation Bank for a period of 2
6. Since how long have you been using Corporation Bank credit card
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From the table and chart no 5.6 it is evident that 6% of the respondents have been
using Corporation Bank credit cards for less than 3 months, 6% of respondents
have been for 3 months - 6 months, 18% of respondents have been using for 6
months – 1 year and 70% of respondents have been using for 1 year and above.
So we can conclude by saying that majority of the respondents have been using
are:
ii. There was no joining fees or annual fees in the beginning ,also low rate
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1. Frequency of using Corporation Bank credit cards
From table and chart no5.7 we can see that 36% of the Corporation Bank credit
card holders use their credit card weekly, 52% monthly, and 10% others such as
fortnightly or as and when need arises .So it is clear that more than half of the
credit card holders used their credit cards at least once a month
2. The terms and the conditions framed by the bank are too confusing
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From the table and chart no5.8, it is evident that 16% felt that the terms and
conditions framed by Corporation Bank credit card was confusing, 24% felt neutral
and 60% felt it wasn’t confusing. So it is clear that the terms and condition of
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3. Billing cycle and interest rate charged
From the table and chart no5.9 it is evident that 94 % of the respondents are
satisfied and 6% are not satisfied with the billing cycle and the interest rate of
Corporation Bank credit cards. So it is evident that the respondents are satisfied
with the billing cycle and the interest rate of Corporation Bank credit cards
From the table and chart no 5.10 we can see that 88% of the customers are satisfied
with the benefits provided with Corporation Bank credit cards, where as 12 % are
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so it is evident that majority of the respondents are satisfied with the various
From the table and chart no 5.11 we can see that 94% of the customers are
satisfied with the credit limit provided with Corporation Bank credit cards , where
as 6 % are so it is evident that majority of the respondents are satisfied with the
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6. Places where normally credit cards is used
Table no. 5.12: Various places where the credit card is used
Options No of respondents
Supermarkets 46
Restaurants 23
Petrol bunks 17
Others 06
From the table and chart no 5.12 it is evident that 46 respondents used the
clear that respondents prefer using credit cards in supermarkets the most when
Table no 5.13: The monthly average credit card bill amount of various
respondents
Options No of respondents Percentage
Less than Rs 1000 07 14
Rs 1000 – Rs 3000 18 36
Rs 3000- Rs 5000 19 38
Rs 5000 and above 06 12
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From the table and chart no 5.13 it is evident that 14% of the respondents’ average
monthly credit card bill amount summed upto less than Rs 1000, 36% between
rs1000 and rs3000, 38% between Rs 3000 and Rs 5000, 12 % above Rs 5000
So we can conclude saying that the respondents average monthly credit card bill
From the table and chart no 5.14 it is evident that 68% of the respondents would
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might not and 14% probably would recommend it to others. So we can conclude
than more than half of the respondents would recommend Corporation Bank credit
cards to others
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From table and chart no 5.15 it is evident that 06% respondents are dissatisfied
with the customer care services of Corporation Bank credit cards, 12% are neutral,
66% are satisfied and 16% are highly satisfied. So it is clear that the respondents
are satisfied to some extent with regard to customer care services of Corporation
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10. Satisfaction with being treated as a valued customer
From table and chart no 5.16 it is evident that 10% of the respondents felt
dissatisfied that the staff showed interest in them as an individual / treated them as
an valued customer, 24% felt neutral, 34% felt satisfied, 32% felt highly satisfied
So it is clear that the respondents are satisfied to very highly satisfied that the staff
From the table and chart no 5.17 we can see that 38% of the respondents had
credit card of other banks and 62% possessed credit cards of Corporation Banks
alone. So we can conclude that more that most of the Corporation Bank credit
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18. (b) Comparison with other banks credit card
Table No5.18: Satisfaction level on comparison with other banks credit card
Options No of Respondents
1-Dissatisfied 01
2-Neutral 07
3-Satisfied 07
4-Highly satisfied 04
From the table and chart no 5.18 it is evident that of the respondents who owned
other banks credit card 01 respondent was dissatisfied, 07 were neutral, 07 were
satisfied and 04 were highly satisfied , so we can conclude saying majority of the
FINDINGS
i. It was found that majority of the card holders where in between the age group
25 – 35 and 45-55
ii. It was found from the study that credit cards were owned by more number of
iii. It was that more number of married had opted for credit card
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iv. It was found that more than 78% card holders where customers of the bank for
vi. It was found from the study that majority of the card holders used their
vii.It was found from the study that 60% of the respondents believed that the terms
and conditions framed by the bank was not confusing hence making it easier to
viii.It was found from the study that 94% of the credit card holders where satisfied
with the billing cycle and the interest rate charged by the bank on its credit card
ix. It was found from the study that 88% of the respondents where satisfied with
x. It was found from the study that 94% of the respondents where satisfied with
xi. It was found from the study that majority of the respondents monthly credit card
xii. It was found from the study that 68% of the respondents would recommend
xiii.It was found from the study that 66% of the credit card holders were satisfied
with the customer care services of the Corporation Bank credit card
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xiv.The respondents were neutral to satisfied in their satisfaction level with
Corporation Bank credit cards when compared to other banks credit cards
xv. It was found from the study that 66% of the respondents felt that the Staff
Customer
xvi.It was found from the study that 62% of the credit card holders did not own any
xvii.It was found from the survey that most of the respondents used their credit
cards at supermarkets
SUGGESTIONS
limited usage of the card on account of non guidance in this matter. Holding
demonstrations in the usage of the card and the services available along with
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ii. Offers on usage: Corporation Bank can provide more offers on using the
credit cards , by awarding points on the usage and giving rewards on the
iii. Fixation of credit limit: Corporation Bank fix the credit limit on a
particular credit card after market survey to find out the desired level of
credit limit expected by the customers, also it can look into the credit limit
enjoyed by the customer with other banks credit card in case he own one.
iv. Introduce billing machine: Corporation Bank can install its own billing
machines at shopping and other places. Because it was found that majority
of that shopping center and other places had billing machines of other banks
arrangement for the payment of credit card bills through ATM, internet,
vi. Expanding the collaborations : Corporation Banks can tie up with the
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vii. Aggressive marketing strategy :Corporation Bank can adopt aggressive
marketing strategy with regard to credit card by advertising the credit card
aggressively
ix. Customization of credit card: Corporation Bank can customize the credit
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CONCLUSION
In India there are many players in the credit card segment .Which is mainly
payment through debit card in order to avoid the Hassles and risk associated
Since Corporation Bank has newly introduced the credit card, the bank can
make use of the suggestions given in the project report in order to maximize
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