Hi s_premkumar999, Hi mkroll
As both of you have similar questions, I will try to answer them in one post.
@s_premkumar999
If I understand the datasheets I found for the CD4050 correctly, this is a "one way" level shifter, which will not help you in this case as at least the C7 (I/O) contact of the smart/sim card is driven by both communications partners. What you might need is a transceiver, which works in both ways. (This is actually what the TDA8024, TDA8035, DS8024 or DS8113 are doing + additional smart/sim card features). So the CD4050 won't work in my opinion in this case.
The chips you found or the ones I've mentioned above are in my opinion just level shifter (The DS8113 supports 5V, 3.3V and 1.8V smart/sim cards). They just take care of the conversion of the voltage levels between modern MCU (Mostly 3.3V or 5V) and smart / sim cards, they also provide some convenience functions, like correct reset timing etc. and last but not least as you can not control what card a use might insert, they protect the MCU against the "outside" world. So for actual products I would recommend using this chips. If you just want to learn how the smart / sim card functions work or have a controlled environment, you can connect your 3.3V SIM (I'm not sure what you meant by 3.7v as I wasn't able t find information's about 3.7v SIM cards, so I thought it's just a typo and you meant a 3.3Volt SIM card) card directly to an Arduino supporting 3.3V (Like the new DUE or a lot of the Mega Version, which support 3.3V / 5V logic).
@mkroll
I don't have a schematic how to connect the TDA8024 with the Arduino, as I've reused a old smart card slot of a set-top box I had laying around. This Smart Card slot is based on a TDA8024, but if you google NXP TDA8024 or NXP TDA8035 you will find a lot information right on the NXP site (there is also a application note AN11058 on how to replace a TDA8024 with a TDA8035). Also Maxim provides a lot information about there maxim DS8024 or maxim DS8113 chips and about the underlying communication protocols. If you read the data sheets closely it talks a lot about high frequency problems and there avoidance, which is quite out of my scope, but with the data from the NXP/MAXIM datasheets it should be possible to build quite decent shields / smart card interfaces.
With kind regards
Angus
PS: I wasn't sure about giving direct links to the data on the NXP or Maxim sites, so I used the "google" way, which in my case led to very useful links on the first page ...