23 Points for Research Proposal

1. Introduction

2. Statement of the problem

3. Need of the study

4. Relevance & Importance of the study

5. Assumptions

6. Objectives of the study

7. Justification of the objectives

8. Statement of hypothesis

9. Working Definitions of terms used

10. Scope of the study

11. Classes of respondents to be contacted

12. Universe & sample size

13. Justification of sampling method & sampling procedure

14. Research Design

15. Sources of data collection

16. Method of data collection

17. Tools of Data Analysis

18. Techniques of analysis of data

19. Note on statistical tools to be used

20. Review of important & relevant literature on the study

21. Knowledge contribution likely outcomes

22. Scheme of the report

23. Select Bibliography/ Webliography

“ A STUDY OF MONEY MANAGEMENT AND BANKING HABITS AMONG
THE HOSTELITE UNDER-GRADUATE STUDENTS IN PUNE CITY. ”

Introduction

Since its introduction in August 2016, the Unified Payments Interface (UPI) has been a game changer
for the digital payments ecosystem in India. The interface allows bank customers to make payments
to another bank account on a real-time basis using the Immediate Payment Service (IMPS). The
National Payments Corporation of India’s BHIM application, which is based on the UPI interface,
was one of the first few UPI applications to gain traction among users. As part of its Digital Payments
Lab in Jaipur, Catalyst piloted a merchant-centric UPI awareness and adoption campaign in a market
cluster of nearly 400 retail outlets, Barkat Nagar, surrounded by a dense residential locality. The
objective of the campaign was to enable merchants to accept payments via UPI-enabled applications
at the point of sale, using Quick Response (QR) code stickers. It also endeavoured to test the
suitability of the QR-based UPI solution for small merchants, and analyse the role of financial
incentives and handholding models as an intervention to boost adoption and use by merchants and
customers. A follow-up survey was conducted four months after the campaign’s launch, to garner
feedback from a sample of users as well as non-adopters. This note discusses learnings and insights
from Catalyst’s pilot UPI awareness and activation campaign, followed by insights from the feedback
survey that was conducted in March 2018. It provides an analytical perspective on the features that
work in favor of BHIM, and barriers to its wider adoption and use. From a user perspective, insights
suggest that the BHIM application faces stiff competition from other UPI applications and payment
platforms in the market. The authors make a case for reorienting BHIM as an ‘ecosystem enabler’ and
propose two strategies to this end.

Digital Payment Modes in India:

There are several mode of digital payment available in India. These are:

Online or mobile wallets: They are used via the internet and through Smartphone applications.
Money can be stored on the app via recharge by debit or credit cards or net-banking. Consumer
wallet limit is Rs. 20,000 per month and the merchant wallet limit is Rs. 50,000 per month after self-
declaration and Rs. 100,000 after KYC verification.
Prepaid credit cards: Pre-loaded to individual’s bank account. It is similar to a gift card; customers
can make purchases using funds available on the card -and not on borrowed credit from the bank.
Can be recharged like a mobile phone recharge, up to a prescribed limit.
Debit/RuPay cards: These are linked to an individual’s bank account. Can be used at shops, ATMs,
online wallets, micro-ATMs, and for e-commerce purchases. Debit cards have overtaken credit cards
in India. The number of debit cards in December 2015 increased to 630 million compared to 22.75 in
2014.
AEPS: The Aadhaar Enabled Payment System uses the 12-digit unique Aadhaar identification
number to allow bank-to-bank transactions at PoS. AEPS services include balance enquiry, cash
withdrawal, cash deposit, and Aadhaar to Aadhaar fund transfers.
USSD: Stands for Unstructured Supplementary Service Data based mobile banking. It is linked to
merchant’s bank account and used via mobile phone on GSM network for payments up to Rs. 5,000
per day per customer.
UPI: The United Payments Interface (UPI) envisages being a system that powers multiple bank
accounts onto a single mobile application platform (of any participating bank). Merges multiple
banking features, ensures seamless fund routing, and merchant payments. It facilitates P2P fund
transfers.

Statement of the problem

The Bharat Interface for Money (BHIM), a mobile application launched by NPCI in 2016, allows users
to make account-to-account transfers using the Unified Payments Interface (UPI). Launched by the
Government of India on the back of the withdrawal of legal tender of bank notes in denominations
of Rs.500 and Rs.1000, BHIM was an integral constituent of the push towards a less cash ecosystem
in the country. A nation-wide awareness and marketing campaign conducted at the time of the
launch of the application, followed by promotional schemes for merchants and customers,
translated into 19 million downloads between December 2016 and March 2017. Moreover, BHIM
has been successful in generating mass awareness about a new interface (UPI), and spurring the
creation of a UPI app ecosystem with nearly 40 applications in the market today. BHIM UPI users
have the option to make payments using a virtual payment address (VPA) or by scanning a Quick
Response (QR) code. As a form factor, the QR code is easy to use, and offers a user experience that
is closer to cash as compared to other payment solutions such as cards. Once the QR code has been
generated using the BHIM application, the merchant has to simply display the code at a prominent
location in his/her establishment, and the customer can scan and pay on the go. In countries such as
China, QR codes are playing an important role in building last-mile acceptance for proximity
payments even among low-income merchant segments. As of 2016, a third of the mobile payments
done through WeChat and Alipay combined ($ 7.9 tn.) were using QR codes.

Need of the study

UPI has witness rapid growth since its launch in August, 2016 in terms of num-ber of users,
volume and value of transactions. Currently 55 banks are live on UPI platform with more
than 60 PSP UPI apps available on app discovery plat-forms. Within 12 months of launch of
UPI, more than 20 million users have downloaded various UPI PSP apps. Total value of
transactions on UPI has grown 82% month on month since its launch with total transacted
amount of Rs. 227 billion till August 2017 (Figure 1). The monthly value of transactions on
UPI has already overtaken monthly transactions of all e-wallets put together in India. The
value of transactions on UPI is currently is less as compared to value of credit and debit cards
transactions which constitute about Rs. 2700 billion per month but UPI is growing at a much
faster rate. Currently person-to-person money transfers constitute majority of UPI
transactions while person-to-merchant transactions are currently very less. This is due to lack
of merchant acceptance infrastructure at merchant payment points to accept UPI payments.
UPI usage for merchant payments is expected to in-crease with more businesses enabling
UPI payments for their customers. Cur-rent POS machines accepting payments through debit
and credit cards need to be reconfigured and updated to accept UPI payments. The updated
POS machines should be able to display the UPI QR code of the merchant to enable the

Figure 1: UPI transaction growth.

customer to scan the QR code and make payment using UPI PSP Apps. Also, POS machines
should be able to get the confirmation status of UPI transactions. As a payment mode, UPI
has the potential to make debit cards redundant since with UPI there will be no need to carry
your debit card as your mobile phone will work as your debit card. However, UPI in the
current form does not support credit cards hence UPI as a product does not compete with the
credit cards. For online payments UPI clearly offers better user experience vias/master debit
cards or net banking payments.

Relevance & Importance of the study

 Impact on Payments in Physical World: Payments in the physical world include cash
and debit or credit card transactions. UPI has the potential to trans-form payments in the
offline world as it offers a cost effective alternative to both cash and cards transactions.
With UPI merchants do not require expensive POS machines to collect digital payments
through cards, a merchant will be able to display a unique UPI QR Code which the
customer can scan with mobile phone and make the payment with the amount being
credited instantly into merchant’s bank account.
 Impact on Online Payments: Currently majority of online transactions are enabled by
payment gateways with Debit/Credit Cards and Netbanking being the primary modes of
payments. Users are required to input all the sensitive de-tails including Card Numbers,
Card Verification Value, Netbanking usernames and passwords etc. This makes digital
payments vulnerable to data leaks and frauds
 Impact on Businesses: Apart from being the most cost effective, fast and seamless
payment method UPI enables digital payments for an entire spectrum of businesses both
for brick and mortar and online merchants. For physical businesses, each employee can
be enabled to collect digital payments since there is no need of any POS machine, each
employee can be provided a unique UPI ID and QR Code which the em-ployees can
present to the customer to collect payments. Apart from proximate payments where the
customers is physically present at the billing counters, UPI opens unique opportunities
for businesses to collect payments where customers are not physically present for
example. Insurance premium collection, school fee R. Gochhwal DOI:
10.4236/ajibm.2017.710084 1189 American Journal of Industrial and Business
Management and electricity bill payments etc. where payment request can be sent to the
 customer and customer can pay remotely using mobile phones. Another important use
case for businesses can be to enable payment at the time of delivery. In India there is a
large prevalence of cash on delivery, almost 60% of ecommerce sales happen with cash
payment being made at the time of delivery. Such payment at time of delivery can be
converted into digital payment at the time of delivery using UPI whereby a customer can
easily pay through UPI at the time of deli-very.

Assumptions:
1. People are aware about what BHIP UPI is and how it functions.
2. Every person who spends money to merchant using BHIP UPI.
3. The category that are taken for study are (Using BHIM UPI) :
a. For online website shopping.
b. For local Merchant.
c. For Recharge (Mobile/DTH)
d. For Paying Bills. (Electricity/GAS/Property Tax etc.)

Objectives of the study

The previous studies done by various researchers throws a light that after demonetization there is a
tremendous shift from cash payments to cashless payments. The main objective of this research is
to understand the level of customer satisfaction among the users of the government’s latest
application for payments BHIM. Also analyzing the UPI payment impact on online payment,
local businesses as well.

Justification of the objectives

The study on profile of respondent would give researcher a complete idea as to what is his
background, his family status, other personal information and so on. For understanding their
knowledge about BHIM UPI and information certain questions and interactive techniques
needs to be developed and applied.
The environment in nearby sample area would give the researcher the information as to what
are the services offered to people.
Working Definitions of terms used

RTGS: Real-time gross settlement (RTGS) is the continuous process of settling payments on an
individual order basis without netting debits with credits across the books of a central bank (e.g.,
bundling transactions). Once completed, real-time gross settlement payments are final and
irrevocable.

NEFT: National Electronic Funds Transfer (NEFT) is an electronic funds transfer system maintained
by the Reserve Bank of India (RBI). Started in November 2005, the setup was established and
maintained by Institute for Development and Research in Banking Technology (IDRBT). .

IMPS: Immediate Payment Service (IMPS) is an instant payment inter-bank electronic funds transfer
system in India. IMPS offer an inter-bank electronic fund transfer service through mobile phones.
Unlike NEFT and RTGS, the service is available 0800 hours to 2000 hours throughout the year
including bank holidays.

Mobile Wallet: Mobile Wallet. The mobile wallet, which is also called mWallet, digital wallet, or
eWallet, refers to a mobile technology that is used similarly to a real wallet. ... Credit and debit cards
are also available in the mobile wallet, making secure transactions simple to conduct via
a mobile device.

Scope of the study:

The research study selected will be covering local vendors, students and people in Pune. Also
observing payment mode of online shopping sites.

Limitations of the study :

1. The study if related to people/vendors in Pune city only.
2. The research is undertaken only limited area of Pune. We’re not covering the entire city
for this.
3. Also analyzing few online e-commerce websites like amazon, flipkart, myntra etc.
Classes of respondents to be contacted:
1) Age group is between 18-30.
2) All Classes such as High, Medium and Low income class of people.
3) Local vendors such as shop owners, retailers, and grocery store owners.

Universe & sample size:

Unit of analysis: The sample was conveniently collected by floating the questionnaire to 65
respondents from various parts of Katra area of Pune through social media sites, online discussion,
and complaint forum. Questionnaire design: The questionnaire was developed by using a five point
scale where the satisfaction level was marked as 1= very good, 2= good, 3=satisfactory, 4=poor, and
5= very poor. Open ended questions were also used to have a better understanding. Analysis The
tool used for analysis was IBM SPSS, to establish a relationship between the dependent and
independent variables the method used was Correlation and Regression was then carried on to
understand the intensity of relationship was designed and data collection was carried out.

Sr.No. Classes Quantity

1 Who are working 30
2 Student 20
3 Vendors 10
4 E-commerce site 5
Total 65

Justification of sampling method & sampling procedure

The sampling method will be the combination of convenience and judgment sampling.
A stratified random sampling will also be adapted to select people.

Research Design
The questionnaire was set based on the four factors mentioned under hypothesis with two to three
questions for each factor. The questionnaire consisted of twenty questions which were framed
under five sections like Basic details, Awareness check, User check, Satisfaction level, Complaints
and queries. Satisfaction level and Complaints and Queries section was framed in 3 grids with each
question having 5 options to answer ranging from very good to very poor which can be
superimposed to a 5 point rating scale.
A. Data showing the transaction values of customers through BHIM
The data shows that around 45% of the BHIM users use it on a daily basis where majority
transactions are of Rs. 1- 5000. (Figure 2). 32% users do transaction between 1K to 5K, 14% do the
transactions between 5K to 10K and only 9% people uses for transaction above 20K

Transaction value of BHIM

Rs 1 - Rs 1000
Rs 1000 - Rs 5000
Rs 5000 - Rs 10000
Rs 20000

Figure 2: Analysis of survey data.

B. Data showing frequency of transaction through BHIM.

The data analyzed shows that majority of transactions are made on daily basis.
 Frequency of Transactions

Daily
Ocassionally
Once in a week
Once in a month

Figure 3: Analysis of survey data.

The data shows that around 44% of the BHIM users use it on a daily basis. 20% users uses BHIP upi
occasionally, 29% uses once is a week and only 7% people uses once in a month.

Sources of data collection:

Research Plan for Data Collection - Information will be collected from both primary source
and secondary source.
Primary Source: Primary data collected through survey was used for the study.

• Contact Methods: Personal interviews of people.

• Research Instrument:

 Questionnaire- the Questionnaire will be Formal & Structured.

 Nature of Questions-
 Personal Information
 Mode of Payment
 Security of application.
 Speed.
  Customer Service.
 Ease of use.
 Overall satisfaction.
 Competitors and alternate option to BHIP UPI
Secondary Source:
 Books, Magazines, newspapers, journals, periodicals, website.
 Data of various e-commerce websites from 3rd party surveys.

Method of data collection

1. Questionnaires
a. Paper Pencil
b. Web Based
2. Direct Observations
3. Interviews
1. Open Ended
 Group Discussion
 Survey
2. Structured Interview
3. Face to Face
4. Telephonic/Online Forums

Tools of Data Analysis

The data so collected would be analyzed with the help of bar diagram, Pie Chart, Histogram
and various graphs and Charts. Use of Excel and formulae method would be undertaken to
analyze the data.

Techniques of analysis of data

Techniques such as formulae and excel sheets would be used for data analysis. Formulae for
Average, compounding, sum, BODMAS, Ratios, and Percentage would be applied. Various
tests of statistical test related to parametric and non parametric data would also be used
during the data analysis.

Note on statistical tools to be used

 This research study will use SPSS Package (Statistical Package for Social Science) with

Paired Sample‘t’ Test and Correlation Test.

Review of important & relevant literature on the study

The study identified that all the independent variables selected (Security, Perceived ease of use,
Customer service, Speed of transaction) have a positive relationship with the dependent variable
customer satisfaction. The intensity of relation is strong for speed and customer service which
shows a positive relationship. Speed is identified to be the strongest predictor of customer
satisfaction which implies that customers well accept the instant mode of bank to bank transaction
which is done in seconds. Transactions of Rs1- Rs1000 is more than higher value from which we can
imply that people are still not ready to transactmoney of higher value. Apart from BHIM other used
applications for transactions are Google Pay, Phone Pe and Paytm. Although these factors are found
to be having a strongrelation with customer satisfaction of BHIM it is not assured that these are the
only determinants of customer satisfaction as there was lack of secondary data. Due to insufficient
literature on BHIM application the literature part of this paper is not so rich. It can be concluded
that BHIM application is one of the best move by the government of India for instant bank to bank
transaction and it is being accepted and loved by a large number of people in India.

Knowledge contribution likely outcomes

Other Contribution:

Following are areas where students awareness need to be done

Scheme of the report

1. Introduction of the study

• Objective of the study

• Statement of problem
 • Importance/significance of the study

2. Review of literature
o Research Papers
o Journals and Publications
o Global perspectives and publications
o Indian perspectives and publications
3. Research methodology of the study

• Sources of data

• Sampling method

• Scope and limitation of the study

4. Profile of students and Bank Environment

5. Saving, Spending Behavior and Banking Habits
6. Analysis and Interpretation of Data
7. Findings and Recommendation
Bibliography
Appendix
Questionnaires

Select Bibliography/ Webliography

1. http://cashlesscatalyst.org/wp-content/uploads/2018/07/BHIM-Learning-Note.pdf
2. https://www.ijitee.org/wp-content/uploads/papers/v8i6/F3493048619.pdf
3. http://www.icommercecentral.com/open-access/study-of-consumer-perception-of-digital-
payment-mode.pdf
4. https://www.researchgate.net/publication/320661583_Unified_Payment_Interface-
An_Advancement_in_Payment_Systems