Due to the technological revolution in financial sector, the payments in banking system have undergone a tremendous change. The Number of innovative products for making payment has developed after the privatization and globalization. Customers have showed their preference over the usage of the plastic money generally over a period of time in the banking process. The present study presents an overview of the usage of the plastic money, i.e. debit and credit cards, and trends in plastic money since their introduction in Indian banking sector. It also discusses the factors behind the usage of Plastic money and consumer behaviour. The study also highlights the role of these cards as electronic payment tool to be used by customers and discusses the penetration of these cards in replacement of cash and paper money. The primary data is collected by taking a survey of about hundred respondents by convenience sampling method by using a structured questionnaire.

Keywords: Plastic Money, Privatization, Globalization, Financial Sector, Banking System.