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Introduction
What is POS Terminal

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 is the place where a retail transaction is completed. It is the point at which a customer makes a payment to a merchant in exchange for goods or services.

A point-of-sale (POS) terminal is a computerized replacement for a cash register. Much more complex than the cash registers of even just a few years ago, the POS system can include the ability to record and track customer orders, process credit and debit cards, connect to other systems in a network, and manage inventory.

Credit and debit card customers often see transactions on their statements described as "point of sale" transactions. Point of sale (POS) refers to the terminals used by many vendors to collect credit and debit card information when customers make purchases. Many stores use POS machines alongside or instead of traditional cash registers.

A Point of Sale (POS) machine is a type of interactive device various businesses make available to customers to conduct financial transactions. Examples include credit card payment terminals, retail store self-checkout stations, movie theater ticket kiosks, machines used for ordering food at convenience stores or quick service restaurants, airport check-in kiosks, and gas station pay at the pump systems.
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 Different Types of POS terminal

Cash Box POS This is the most basic, and also the oldest, POS system; it requires only a cash box and/or a receipt book. It is used in small businesses.

Mechanical Register POS

This POS system requires a basic cash register that has the ability to add taxes, total charges, calculate change and print receipts.

Electronic Register POS

The electronic register POS is very similar to the mechanical register POS. The difference is this POS system has the ability to print out hourly, daily, monthly and yearly sales reports.

Software-Based POS

Software-based POS systems run on specialized software that allows the merchants to develop various types of sales reports based on various factors like employee, product, etc. The merchant must have the necessary compatible hardware to go with the software.

Web-Based POS

Web-based POS systems take the software-based POS system to the next level. The merchant must have an Internet connection. This monthly fee-based POS system usually comes with unlimited technical support and regular upgrades.

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 Wireless POS

Wireless POS systems are Web-based POS systems that allow the merchant to be have a mobile presence. These POS systems are used by street and conference vendors.

Advantages of POS Terminal

Manage Inventory

A POS system records each and every transaction and can help to manage inventory and reduce shrinkage. Immediate updates allow accurate records of sales to be pulled at any point throughout the day. Time-stamped transactions allow products that are sold together to be identified; this information can then be used to adjust how products are presented or coupled.

Manage Markdowns and Promotions

A POS system may include pricing models that can automate markdowns and other promotions, ensuring consistency of product pricing throughout the stores.

Track Promotions

A POS system can also help identify which product promotions resulted in higher sales, and the overall success of the promotion.

Reduce Paperwork

A POS system may include a number of automated reports for features, such as payroll, marketing tools, customer data and accounting tools, that eliminate the need for paperwork or additional systems.

Faster Transactions

POS systems that include bar code scanners make for more efficient transactions than when bar codes must be entered manually.

Sales
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A good point-of-sale system records each sale or transaction. This allows you to immediately match your company's sales with inventory. Those two numbers should always match, assuming data is entered accurately into the system. In most instances, if your sales and inventory numbers don't match, your point-of-sale system will bring discrepancies to light. You may even discover the cause of your inventory shortage and prevent fraudulent activities.

Price Adjustments

Its easier to adjust your prices using a point-of-sale system. With the system, you don't have to use employees to change prices with an old fashioned price gun. Enter the adjusted price information for the clearance item and it will be updated to the entire system. This results in using employees in a more efficient way.

Promotions

With a point-of-sale system, you can enter promotion codes for customer discounts. This provides you important feedback, such as whether the promotion helped improve sales. Various discounts and coupon usage can be tracked using a point-of-sale system. Your system may also be able to store such information as how many coupons were presented in a certain week or the total dollar amount of discounts given over a month.

Customizable

You can have your point-of-sale system tailored to your industry. Every industry has different needs. For example, the sales tracking needs of a restaurant are different from those of a retail vitamin chain. Restaurants may require a point-of-sale system capable of tracking items like appetizers or entrees sold, while a retail vitamin store may need to track sales by brand name or per bottle size. Some point-of-sale systems are expandable in terms of growing with your business.

Consistency

If you have more than one location, a point-of-sale system will streamline operations between locations. In other words, you'll have more consistency in issues like pricing

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from one location to the next. Furthermore, your point-of-sale system will ensure consistency in terms of maintaining accurate inventory controls at each location.

Disadvantages of the POS Terminal

Connection Reliability

With a Web-based POS, you will need to maintain an Internet connection with a reliable Internet provider, and even then you risk the occasional outage. If you lose connection to the Internet, you won't be able to access the POS system. Webbased POS systems often have a network fail-safe option if you have Internet problems, but you may be inconvenienced in the meantime as you wait for the network to get back up and running.

Web-Based POS Fees

Most Web-based POS system providers charge a monthly fee, which may result in a poor return on investment for your business. You will need to investigate the monthly subscription fees and factor how it fits into your budget. Paying too much for a POS system can erase the profits it's bringing in. Some providers also require you to buy their hardware, which you may not even need. Providers also sometimes charge a start-up fee.

Software POS Upgrades Are Costly

Software-based POS systems can come with extra expenses if you want to keep them current. Unlike most Web-based POS systems, which typically come with

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free updates, you'll have to buy new software or licenses in order to upgrade the software as your business grows.

Less Convenience for Software-Based

Software-based POS systems are less convenient than Web-based POS systems because you can't necessarily access reports and inventory from a computer with just an Internet connection. The hardware terminals for a software-based POS system may be hooked up to an internal network accessible only by that hardware. In that case, you'll have to access that information from the hardware that accesses the software directly.

Hardware Could Cause Problems

If you have a problem with the hardware, it's not as easy to fix as it is with a Webbased system. You'll have to call the manufacturer and try to troubleshoot the problem, and it may require an on-site visit, which can cost you time and money.

Objectives of a POS Terminal

Inventory Management

One of the objectives of a POS system is inventory management. POS systems use bar code identification in receiving, tracking and selling inventory items. Rather than expending labor hours to monitor stock levels, determine when to reorder low stock items or to record the sale of specific items, the POS system can automate much of the processes involved in monitoring and managing inventory. A POS system can also monitor the cost of goods sold, purchase price, sale price and profit margins, allowing users to pull reports and determine when to adjust customer pricing.

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 Customer Data

Depending on the scope of a POS systems software and information input capacities, retailers can use a POS system to gather information on current customers. By using customer identification variables such as a phone number, retailers can customize the buying experience for customers. Keeping a credit card on file, for example, offers customers ease of ordering and encourages repeat business.

Accounting Automation

Another objective of a POS system is to simplify the accounting and record-keeping tasks involved in business. Sales are automatically calculated to determine sales and use tax owed, gross receipts accumulated and even expenses like payouts to vendors for inventory. When incorporated into a computerized accounting system, a POS system can manage sales, collect taxes, record transactions, clear credit cards and track bank deposits from various credit card processing vendors.

Overall Objectives

In short, POS systems seek to automate as much of a retailer's financial processes as possible. By increasing information reporting accuracy, retailers gain smoother operations and better information on which to make crucial business decisions. By reducing the labor hours required to gather such information, retailers can reduce the cost associated with record keeping and information collection. Likewise, costs are further reduced because retailers have more current information on buying trends and inventory levels, as well as increased accuracy in regard to the prices charged to customers.

STATE BANK OF INDIA - Merchant Acquiring Business (MAB) NEW RATES FOR MERCHANT DISCOUNT RATE (MDR) w.e.f 1st Sept 2012

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Particulars

MDR for State (On Us) Debit Cards

MDR Bank Other (Off Us) Debit Cards

for MDR Bank Credit

for MDR

for

Cards Foreign cards (facility to be specified) 2.0% + service tax

(Floor rates)

Transaction amount up to Rs. 2000 Transaction amount Rs. 2000 above

0.65% + service 0.75% + service 1.50% + service tax tax tax

0.65% + service tax

1.0% + service tax

1.50% + service tax

2.0% + service tax

SBI POS Terminal Rate: Three Types of Point of Sales (POS) machines available:
1. PSTN : available over Landline Phone No rental Local call charges apply 2. GPRS: Working with Sim card (Reliance) with No call charges (i) (ii) DESKTOP GPRS (requires Electric connection): PORTABLE GPRS (Battery backup available): First 48 Months Desktop GPRS (Rs.) Portable GPRS (Rs.) From 49th Month Desktop GPRS (Rs.) Portable GPRS (Rs.) Monthly rental (per terminal, including SIM charges) 220 service tax + 400 service tax + Actual SIM charges

(Presently Rs. 45/- plus service tax)

One

time

non-refundable 200

400

NA

NA

security amount (At the time of installation only)

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Industry Profile
Organized banking was active in India since the establishment of the General Bank of India in 1786. After independence, the Reserve Bank of India (RBI) was established as the central bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by the government to form state-owned State Bank of India (SBI). RBI had undertaken an exercise to merge weak banks to strong banks and the total number of banks thus reduced from 566 in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of branches and the banks branch network became wide enough to reach the weakest sections of the society in a vast country like India. Sibs network of 9033 domestic branches and 48 overseas offices is considered to be one of the largest for any bank in the world. The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extent. Entry of new private sector banks was permitted under specific guidelines issued by RBI. A number of liberalisation and de-regulation measures aimed at consolidation, efficiency, productivity, asset quality, capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with International best practices. With a view to giving the state-owned banks operational flexibility and functional autonomy, partial privatization has been authorised as a first step, enabling them to dilute the stake of the government to 51 per cent. The government further proposed, in the Union Budget for the financial year 2000-01, to reduce its holding in nationalised banks to a minimum of 33 per cent on a case by case basis. The banking system can be broadly classified as organized and unorganized banking system. The unorganised banking system comprises of moneylenders, indigenous bankers, lending pawnbrokers, landlords, traders, etc. Whereas the organised banking system comprises of Scheduled Banks and Non-Scheduled Banks that are permitted by RBI to undertake banking business.
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Types of Banks

A. Scheduled Banks

Scheduled commercial banks are those that come under the purview of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are included under this schedule are those that satisfy the criteria laid down vide section 42 (6 of the Act). 1. The bank is dealing in banking business in India only. 2. The paid up capital and total funds of the bank should not be less than five lakhs rupees. 3. It should convince RBI that its activities would not be against the interest of investors. 4. The bank must be: (a) State cooperative bank, or (b) A company according to the definition of the companies Act1956, or (c) An institution notified by the central government, or (d) A corporation or a company incorporated by or under any law in force in any place outside India. Thus, (I) Indian Commercial Banks (II) Foreign Commercial Banks, and (iii) State Cooperative Banks fulfilling the above condition are considered as scheduled banks. Moreover under the RBI Act section 42, the Central Government has declared the following banks as scheduled banks.

(i) (ii) (iii)

State Bank of India and its seven subsidiary banks, Twenty nationalized banks, and Urban Banks.

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In June 1980 there were 149 scheduled banks which included (i) (ii) (iii) (iv) Public Sector Banks Private sector Banks, Foreign Exchange Banks and State Cooperative Banks.

A bank which wants to register its name as scheduled bank has to apply to the Central Government. On receiving such application, the central government orders RBI to investigate the banks accounts. If RBI gives favorable reports, the central government sanctions its proposal, and the bank is listed under schedule annexure II and is considered as a scheduled bank. Some co-operative banks come under the category of scheduled commercial banks though not all co-operative banks.

PUBLIC SECTOR BANKS

Public sector banks are those in which the Government of India or the RBI is a majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India are those of the public sector banks. Some of the leading banks in this segment include Allahabad Bank, Canara Bank, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.

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 PRIVATE SECTOR BANKS

Private Banks are essentially comprised of two types: OLD AND THE

NEW.

The OLD PRIVATE sector banks comprise those, which were operating before Banking Nationalization Act was passed in 1969. On account of their small size, and regional operations, these banks were not nationalized. These banks face intense rivalry from the new private banks and the foreign banks. The banks that are included in this segment include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank.

The new private sector banks were established when the Banking Regulation Act was amended in 1993. Financial institutions promoted several of these banks. After the initial licenses, the RBI has granted no more licenses. These banks are gearing up to face the foreign banks by focusing on service and technology. Currently, these banks are on an expansion spree, spreading into semi-urban areas and satellite towns. The leading banks that are included in this segment include Bank of Punjab Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd. CO-OPERATIVE BANKS Co-operative banks act as substitutes for moneylenders, and offer timely and adequate short-term and long-term institutional credit at reasonable rates of interest. Co-operative banks are relatively similar in terms of functions to the other banks except for the following:

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(a)They are organized and managed on the principal of co-operation, self-help, and mutual help. (b)They operate under the rule of "one member, one vote". (c) Operate on "no profit, no loss" basis. (d) Co-operative bank conducts all the main banking functions of deposit mobilization, supply of credit and provision of remittance facilities. Co-operative banks offer limited banking products and are functionally specialists in agriculture-related products, and even in providing housing loans of late. Urban Co-operative Banks offer working capital loans and term loans as well. (e) Co-operative banks primarily operate in the agriculture and rural sector. However, UCBs, SCBs, and CCBs function in semi urban, urban, and metropolitan areas too (f) Co-operative banks are probably the first government sponsored, governmentsupported, and government-subsidized financial agency in India. They get financial and other aid from the Reserve Bank of India NABARD, central government and state governments. They are the "most favored" banking sector with risk of nationalization. (g) Co-operative banks normally concentrate on "high revenue" niche retail segments. DEVELOPMENT BANKS Development banks are primarily intended to encourage industrial development by providing adequate flow of funds to industrial projects. In other words, these institutions undertake the responsibility of aiding all-round development in the countrys economy by promoting new industrial projects, and providing financial assistance for the expansion, diversification, and up gradation of the existing units. Development Banks may be classified as All India development banks and Regional development banks. While All India development banks include Industrial Development Bank of India and Industrial Finance Corporation of India, examples of Regional development banks include State Financial Corporation and State Industrial Development Corporation.
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B.

NON-SCHEDULED BANKS: The banks, which are not included in the second schedule of RBI Act, 1934, are known as non-scheduled banks. Such banks total share capital is less than five lakhs. These banks are not governed according to the RBI Act and they receive no benefits from the RBI. These banks have no place in the list of recognized banks of the RBI. These banks are not much trusted by the people and they do not get handsome deposits. Since 1951 the numbers of such banks have been gradually decreasing. In 1979 there were only five non-scheduled banks.

Generally now days we found many cooperative banks which are belongs to the non-schedule co-operative banks. Following are the types of non-schedule banks they are work like the schedule banks but here difference in its status and it not having the status of the schedule banks. a. b. c. d. e. f. g. Deposits Banks Cooperative Banks Central Banks Exchange Banks Investment or Industrial Banks Land Development Banks Savings Banks

(a) Deposits Banks: Generally, banks which provide short-term loans to business and industrial units and which mobilize savings of people as deposits are called deposit banks. Deposit banks accept deposits from people, and provide short-term advances. They provide overdraft and cash credit facilities to merchants. To meet the long-term requirement of industrial units is not possible for these banks. They accept three types of deposits- saving bank deposits, fixed deposits and current account deposits. They accept these deposits which are payable on demand or on short notice, and provide funds to trading and commercial units for short durations. (b) Cooperative Banks

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Cooperative banks meet the short-term financial needs of farmers. Agriculturists, petty farmers and artisans organize themselves on cooperative principles and form cooperative societies and banks. Cooperative banks raise funds through various means, besides receiving all kinds of deposits to make them available as lendable funds to its members. In India developed cooperative banks supply finance for agriculture and non-agriculture activities. (c) Central Banks A central bank is a special institution which controls and regulates the entire banking structure of country. It also strives to maintain monetary stability of the country. Central bank is also known as the apex bank of a country. Since it functions in the best interest of the country and making profits is unknown to it, it is entrusted the right it issue currency notes. No other bank is allowed this right. It operates in close cooperation with the government of implementing economic policies, thereby promoting economic development. (d) Exchange Banks: There is a difference in financing of foreign trade and financing of internal trade. Generally a person carrying on international trade requires foreign currencies to meet his obligation. It is here that exchange banks play the role of financing the dealer for setting transactions involved in foreign trade, there are specialized banks for exchange business. In India, there is an Export-Import Bank (EXIM). (e) Investment or Industrial Banks: Investment banks provide long-term credit to industries. They raise their funds by way of share capital, debentures, and long-term deposits from the public. They also raise funds by the issue of bonds for business operations and government agencies. Usually they underwrite fresh issue of shares and debentures of companies. Such banks also buy the entire issue of new securities of public limited companies and try to get them subscribed at a higher price by the public.

(e)

Land Development Banks:

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Land development banks were earlier known as land mortgage banks. In India, there is limited number of such banks. There are special institutions providing long-term loans to agricultures and farmers. They provide loans on security of land and other immovable properties. They supply long-term funds for periods exceeding six years. Agriculturists and farmers need such funds for making permanent improvements to land and for buying farming machinery and equipment. (g) Savings Banks: Savings Banks are specialized institutions, which encourage general public to save something from their earnings. In other words such banks pool the small savings of middle and lower income sections of society. They are the banks in the true sense of the term and their main aim is to promote and collect of the public. Not only the depositors are given interest, but also they are allowed to withdraw in times of need. The numbers of withdrawal are, however, restricted. Separate savings banks are organized in various nations. The government can also run a savings bank. In India the postal department runs the postal saving bank all over the country. It is very popular in rural areas where no branches where no branches of established commercial bank operate. In urban areas, commercial bank handles savings business.

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Company Profile
State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.[2] The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidency banksBank of Calcutta and Bank of Bombayto form the Imperial Bank of India, which in turn became the State Bank of India. Government of India nationalized the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout the country. SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks. The State Bank of India was named the 29th most reputed company in the world according to Forbes 2009 rankings and was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.

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History
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters. These three banks received the exclusive right to issue paper currency till 1861 when with the Paper Currency Act, the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI. SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin inKerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

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The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also utilises other typefaces. Structure Current Board of Directors As on 14 January 2013, there are fifteen members in the SBI board of directors:

Pratip Chaudhuri (Chairman) Hemant G. Contractor (Managing Director) Diwakar Gupta (Managing Director) A. Krishna Kumar (Managing Director) S. Visvanathan (Managing Director) S. Venkatachalam (Director) D. Sundaram (Director) * Thomas Mathew (Director) S.K. Mukherjee (Officer Employee Director) Rajiv Kumar (Director) Jyoti Bhushan Mohapatra (Workmen Employee Director) Deepak Amin (Director) Harichandra Bahadur Singh (Director)

International presence As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in the Vancouverarea.

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SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, withCanara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005. Associate banks

Main Branch of SBI in Mumbai. SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore

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Earlier SBI had seven associate banks, all of which had belonged to princely states until the government nationalised them between October 1959 and May 1960. In tune with the first Five Year Plan, which prioritised the development of rural India, the government integrated these banks into State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations. The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77 %.) The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion marks (10 billion long scale). The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

Non-banking subsidiaries Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) SBI DFHI Ltd SBI Life Insurance Company Limited SBI General Insurance

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In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai. Other SBI service points SBI has 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group (including associate banks) has about 45,000 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012. Logo and slogan

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business.

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US"

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Literature Review

M. Zane Thornton National Bureau of Standards, Washington, D.C. The electronic point-of-sale terminal is the newest form of computer technology being introduced into the retail industry. Industry interest in the terminal is focused on its potentially great advantages for retailers in improving their productivity and performance in merchandise control and credit customer control. The electronic point-of-sale terminal's appeal over the standard cash register lies in its potential for impacting the total merchandise system through increasing the speed and accuracy of transactions and providing a method of capturing greater quantities of data essential to the effective management of the merchandise system. At the checkout counter, the terminal equipped with an automatic reading device and credit verification equipment will permit the rapid completion of the sales transaction and, at the same time, capture and enter into the central system all the data necessary for closer, more effective control of the merchandise system. Bonito Michaocan, Subhlaxmi Grocers, Tutti Frutti, Jambetos Bakery Headquartered in Stafford, Texas, possisible POS is a provider of innovative technology to the hospitality and retail industries. We specialize in complete POS systems and POS software to meet the needs of almost any business environment, including restaurants, groceries, salons, convenience stores, and liquor stores, to name a few .We make it possible for you to perform tons of business-enhancing functions that offer efficiency, added customer-service and userfriendly operations, allowing your business to run more effectively. From taking orders to tracking inventory, possibles POS systems provide a comprehensive solution for almost any business environment. We feature Restaurant and Retail POS System options that will fit many business needs. POS technology like this will give you the cutting edge to make clear decisions while maintaining an awareness of profitability. Think of the possibilities Contact us today and see for yourself how we can improve your bottom line!

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TechNavio's TechNavio's analysts forecast the Global Wireless POS Terminal market to grow at a CAGR of 7.7 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing necessity to improve hospitality and reliability among customers. The Global Wireless POS Terminal market has also been witnessing the increasing organized logistics sector in emerging countries. TechNavio's report, the Global Wireless POS Terminal Market 20122016 has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, and the EMEA and APAC; it also covers the Global Wireless POS Terminal market landscape and its growth prospects in the coming years. The scope of the report includes a discussion of the key vendors operating in this market. It includes the market for wireless POS terminals across end-user segments.

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Research Methodology

Scope: Overview of the State Bank of India Market structure & Segmentation of State Bank of India Recent developments in State Bank of India Key Players and their market share

Objectives: Indentify the capabilities of State Bank of India A detailed analysis of State Bank of India Plan better strategies by understanding State Bank of India from all perspective

The different methods for conducting marketing research are as follows:1) Opinion poll methods 2) Survey methods:-

a) Personal survey (Questionnaire), b) Mail survey, c) Telephone survey

3) Expert opinion method In my report, I have used personal survey method. The questionnaire was prepared keeping in view certain objectives.
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METHODS OF DATA COLLECTION:The data has collected in two ways:-

(1) Primary data: Primary data is to be collected to know the Customers Perceptions, preferences and belief. Primary data are those, which are collected for the first time, and they are original in character. A suitable combination of Questionnaire techniques, Personal interviews & discussions with the respondents are used to collect the required Primary data. Findings of the primary data focus on the Merchant of the State Bank of India. Primary data gives higher accuracy and facts, which is very helpful for any research and its findings.

The Primary data was a detailed interview schedule with the help of a detailed questionnaire. The samples were drawn purposively from various areas for the relevance of the study. Discussions were held with the general, branch manager and executives of the company to design and execute the research.

(2) Secondary Data:The secondary data are those, which are alr eady collected by someone for some purpose and are available for the present study. Secondary data are to be collected from the magazines, websites and other such sources. My study, which is to have a thorough knowledge and understanding about the Company Business, Marketing activities, Competition pattern and their strategies, is mostly based on secondary data though a descriptive research. Also I have taken some secondary data though interviews with company officials of Marketing Department and customer of different companies.

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 TOOLS AND TECHNIQUES OF DATA COLLECTION:(1) Questionnaire method:F o r t h e D e s c r i p t i v e t yp e s o f r e s e a r c h t h e t o o l s f o r c o l l e c t i n g d a t a f r o m t h e s a m p l e s i s questionnaire method. Questionnaire includes both closed-ended as well as open-ended questions.. And my Sample size is 200 Questionnaires.

(2) Observation method: -

Some data are not getting directly from the respondents so we have to use the observation method. For this research the observation method is also used to collect the information.

SAMPLING PLAN :After deciding on the research approach and instruments, it is necessary to design a sampling plan. This plan calls for three decisions:-

Sampling unit :It should be defined in a research the target population that will be sampled. Once the sampling unit is determined, a sampling frame must be developed so that everyone in the target population has an equal chance of being sampled. To fulfill this purpose, I had taken customers of State Bank of India as a sample.

Sampling procedure :To obtain a representative sample I had selected customers of Ahmedabad region who have current A/C in State Bank of India.

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 Sample size :However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than 1% of the population can often provide good reliability, given a credible sampling procedure. So, I had decided to take the sample size as 200 from Merchants of Ahmedabad .

Geographical area:-

Ahmedabad, Gujarat

Sample Technique:The sampling method use for the selection of customer is convenient sampling, I have tried to cover as many merchants as possible, to give my repot more logical support and cover area of Ahmedabad region.

Research Design:After formulating the research problems. The research design was involved. This design had to suit the requirements of the present study, had to explore and also describe and diagnose the problems of the study. It was a descriptive cross sectional design.

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Data Analysis Tools

(A) SWOT Analysis:-

Strengths
-government provides monetary assistance -skilled workforce -experienced management -existing distribution networks -reduced labor costs

Weaknesses
-low investments in research and development -too much competition -no brands

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-high costs

Opportunities
-global reach of business -growth rates -growing demand

Threats
-increasing costs -technological problems -limited financial capital -tax changes -high competition -rising cost of raw materials -increasing rates of interest

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Data Analysis
Sample Size (n) CHART NO .1

= 200

(1) Which type of garments do you sell in your outlet?

Mens wear Ladies wear Kids wear Any Other Total 76 96 26 2 200

1% 13% 38%
Men's wear Ladies wear Kids wear

48%

Interpretation:As per above analysis, we can say that there is Around 50% are Garments selling mens wear and 38% Ladies wear selling and rest of merchant is kids wear selling.
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CHART NO .2

(2) By which modes do you accept payment from customer?

(Tick all applicable) By cash By credit card Total 178 22 200

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

84%

16%
By cash By credit card

Interpretation:As per above analysis, we can say that there is Around 90% people are Garments purchase through cash and remain people are purchase by credit card.
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CHART NO .3

(3) What percentage of your garments is usually sold through

debit / credit cards? <25% 25% to 50% >50% Total 138 56 6 200

>50% 2%

25% to 50%

28%

<25%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Interpretation:As per above analysis, we can say that 70% merchant are >25% sell in garments usually credit card and remain merchant 25% to 50%.
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CHART NO .4

(4) Do you have an SBI current account? Yes No Total 14 186 200

7%

Yes

No

93%

Interpretation:Above chart indicates that 93% people are not use in SBI current account and remain people are use.
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CHART NO .5

(5) Are you aware of the SBI POS terminal? Yes No Total 42 158 200

80% 70% 60% 50% 40% 30% 20% 10% 0%

79%
21% yes No

Interpretation:As per above analysis, we can say that 21% people are aware of SBI Pos terminal and remain 79% are not aware.

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CHART NO .6

(6) How did you come to know about the SBI POS machine?
Internet Poster Bank representative Others Total 28 66 68 38 200

35% 30% 25% 20% 15% 10% 5% 0%

33% 14%

34% 19%

Interpretation:As per above analysis, we can say that 34% merchant are to know bank representative , 33% merchant by poster, 14% by internet and remain merchant by other.
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CHART NO .7

(7) Do you use an SBI POS machine? Yes No Total 25 175 200

Yes 13%

Yes
No 88%

No

Interpretation:As per above analysis, we can say that 12% merchant are use in SBI POS terminal and 88% are not use.
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CHART NO .8

(9) How long have you been using the SBI POS machine? Less than 6 month Between 6 to 18 month More than 18 months Total 19 4 2 25

80% 70%

76%

60%
50% 40% 30% 20% 10% 0%

16%

8%

Less than 6 months

Between 6 to 18 months

More than 18 months

Interpretation:As per above analysis, we can say that 76% merchant are Less than 6 month using POS machine, 16% merchant between 6 to 18 month using and remaining other.
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CHART NO .9

(12) What are the reasons for not using SBI POS machine in your outlet? [Tick all that apply]
Fear of fraud You feel that giving discount to customers is not possible using POS Transaction fees of SBI is high Customers insistence to use cash Fear of not being able to operate POS terminals Others Transaction fee decrease the profit Total 22 18 175 44 58 16 2 15

10%

1% 9%
Fear of fraud

13% 9% 33%

25%

You feel that giving discount to customers is not possible using POS Transaction fees of SBI is high

Interpretation:As per above analysis, we can say that 33% customer insistence to use cash, 25% merchant said transaction fees is high and remain merchant other reason.
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Hypothesis Test (1) SBI POS helped me to increase garment sales? Highly Agree (5) 5 7 Agree (4) Neutral (3) 9 Disagree (2) 3 Highly Disagree (1) 1

(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 25

x = 3.4800

s = 1.08474

df = 25-1 = 24

= 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,24 = -2.492

(d)

t =

x 3.4800 3 s 1.08474 n 25

= + 2.213

(e) (f)

Observed t = +2.213 > t.01,24 = - 2.492

Fail to Reject the null hypothesis

(g) Interpretation:-

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The decision is Accepted for the banks POS terminal increase garment selling, it means Customers are Satisfied at Neutral level(Rank 3)

(2) Which factors you considered important while adopting the SBI POS system? [Tick all that apply] 2.1 Simplicity of usage Highly Important (5) 5 6 Important (4) Neutral (3) 9 Unimportant (2) 4 Highly Unimportant(1) 1

(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 25

x = 3.4000

s = 1.11803

df = 25-1 = 24

= 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,24 = -2.492

(d)

t =

x 3.4000 3 s 1.11803 n 25

= + 1.789

(e)
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(f)

Fail to Reject the null hypothesis

(g) Interpretation:The decision is Accepted for the banks POS terminal adopt in simplicity usage, it means Customers are Satisfied at Neutral level(Rank 3)

(2) Which factors you considered important while adopting the SBI POS system? [Tick all that apply] 2.2 Ease of cash handling Highly Important (5) 4 7 Important (4) Neutral (3) 10 Unimportant (2) 3 Highly Unimportant(1) 1

(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 25

x = 3.4000

s = 1.0408

df = 25-1 = 24

= 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,24 = -2.492

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(d)

t =

x 3.4000 3 s 1.0408 n 25

= + 1.922

(e) (f)

Observed t = +1.922 > t.01,24 = - 2.492

Fail to Reject the null hypothesis

(g) Interpretation:The decision is Accepted for the banks POS terminal adopt in ease of cash handling, it means Customers are Satisfied at Neutral level(Rank 3)

(2) Which factors you considered important while adopting the SBI POS system? [Tick all that apply] 2.3 Faster payment processing time Highly Important (5) 8 6 Important (4) Neutral (3) 8 Unimportant (2) 1 Highly Unimportant(1) 2

(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 25

x = 3.6800

s = 1.2152

df = 25-1 = 24

= 0.01(99% Confidence Interval)

(b)

Ho: = 3

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Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,24 = -2.492

(d)

t =

x 3.6800 3 s 1.2152 n 25

= + 1.798

(e) (f)

Observed t = +1.798 > t.01,24 = - 2.492

Fail to Reject the null hypothesis

(g) Interpretation:The decision is Accepted for the banks POS terminal adopt in faster payment processing, it means Customers are Satisfied at Neutral level (Rank 3)

(3) What is your perception about the following factors for using SBI POS? 3.1 Transaction charges Excellent (5) 1 Good (4) 5 Neutral (3) 4 Poor (2) 7 Very Poor (1) 8

(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 25

x = 2.3600

s = 1.2543

df = 25-1 = 24

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 = 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,24 = -2.492

(d)

t =

x 2.3600 3 s 1.2543 n 25

= -2.551

(e) (f)

Observed t = -2.551 < t.01,24 = - 2.492

Reject the null hypothesis

(g) Interpretation:The decision is Rejected for the banks POS terminal adopt in transaction fees, it means Customers are not Satisfied at Neutral level (Rank 3)

(3) What are the factors that may encourage you to accept SBI POS? 3.1 Current account for POS can be opened at zero balance Highly Important (5) 32 Important (4) 52 Neutral (3) 61 Unimportant (2) 24 Highly Unimportant(1) 6

(a) Ho: = 3 Customers are Satisfied at Neutral level

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Ha: < 3 Customers are not at Neutral level n = 175

x = 3.4571

s = 1.0489

df = 175-1 = 174

= 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,175 = -2.33

(d)

t =

x 3.4571 3 s 1.0489 n 175

= + 5.766

(e) (f)

Observed t = +5.766 > t.01,175 = - 2.33

Fail to Reject the null hypothesis

(g) Interpretation:The decision is Accepted for the banks current account for POS cab be opened at zero balance, it means Customers are Satisfied at Neutral level (Rank 3)

(3) What are the factors that may encourage you to accept SBI POS? 3.2 Service of SBI Highly Important (5) 11
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Important (4) 18

Neutral (3) 47

Unimportant (2) 45

Highly Unimportant(1) 54
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(a) Ho: = 3 Customers are Satisfied at Neutral level

Ha: < 3 Customers are not at Neutral level n = 175

x = 2.3543

s = 1.1987

df = 175-1 = 174

= 0.01(99% Confidence Interval)

(b)

Ho: = 3 Ha: < 3

(c)

For one-tail test,

= 0.01

critical t.01,175 = -2.33

(d)

t =

x 2.3543 3 s 1.1987 n 175

= -7.126

(e) (f)

Observed t = -7.126 < t.01,175 = - 2.33

Reject the null hypothesis

(g) Interpretation:The decision is Rejected for the banks current account for POS cab be opened at zero balance, it means Customers are not Satisfied at Neutral level (Rank 3)

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Research Findings

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Recommendation & Suggestions

Based on the findings of our project we would like to suggest the following:-

After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls. SBI bank is having too many financial products right from current account to General Insurance and not all the salespeople are familiar with each and every product so the work force should be segregated each group dealing in a specific product and the sales target should be given likewise. Merchant Discount Rate for Credit card is too high when targeting other bank MDR rate is flexible rate. SBI bank should provide periodic training for updating the product knowledge of various financial advisors. Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.

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Limitations

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Conclusion

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Learning During The Project

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Bibliography
WEBSITES

www.statebankofindia.com www.onlinesbi.com www.weikipedia.com www.google.com

Annexure
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Questionnaire:Name of owner : ____________________________________________________ Name of Business unit : _______________________________________________ Address: ___________________________________________________________ ___________________________________________________________ Age of owner : ________year Since how many year you are in the business : __________year Annual turnover : __________ Contact no: _______________________

1. Which type of garments do you sell in your outlet? Mens Wear Ladies Wear Kids Wear Any Other

2. By which modes do you accept payment from customer? (Tick all applicable) By cash By debit card Others by cheque by credit card

____________________________________________________

3. What percentage of your garments are usually sold through debit / credit cards? < 25 % 25 % to 50 % > 50 %

4. Do you have an SBI current account? Yes

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5. Are you aware of the SBI POS terminal? Yes No

6. How did you come to know about the SBI POS machine? Internet Bank representative Poster Others ( Pl. specify__________________)

7. Do you use an SBI POS machine? Yes No

IF YES, then
8. SBI POS helped me to increase garment sales? Highly Agree 9. How long have you been using the SBI POS machine? Less than 6 months Between 6 to 18 months More than 18 months Agree Neutral Disagree Highly Disagree

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10. Which factors you considered important while adopting the SBI POS system? [Tick all that apply]
particular Highly Important Additional payment method Simplicity of usage Ease of cash handling To avoid robberies and thefts Faster payment processing time Others Important Neutral Highly Unimportant Unimportant

11. What is your perception about the following factors for using SBI POS?

Excellent (>80%)
Near branch Training on usage Transaction time Connectivity/ network Transaction charges Quick access to funds

Good (60-80%)

Neutral (40-60%)

Poor (<40%)

V. Poor (<20%)

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IF NO, then

12. What are the reasons for not using SBI POS machine in your outlet? [Tick all that apply] Fear of fraud You feel that giving discounts to customers is not possible using POS Transaction fees of SBI is high Customers insistence to use cash Fear of not being able to operate POS terminals Others Transaction fee decrease the profit

13. What are the factors that may encourage you to accept SBI POS?
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Particular

Very important factor

Important factor

Neutral

Highly Unimportant Unimportant Factor Factor

State Banks branch name State Banks Marketing State Banks transparency Saving of time Lowest Merchant Discount Rates

Current account for POS can be opened at zero balance Service of SBI Co-operation of SBI staff

14. Any Suggestions. ________________________________________________________________________ __________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________

THANK YOU

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