Credit card spending scales record high at Rs 1.4 lakh cr in May; 87.4 million cards in use

Credit card spending scales record high at Rs 1.4 lakh cr in May; 87.4 million cards in use

According to the latest data from the Reserve Bank of India (RBI), credit card spending in India reached a record high of Rs 1.4 lakh crore in May. Throughout the previous fiscal year, the total spending or outstanding dues on credit cards remained relatively stable. However, this year, there has been a consistent month-on-month increase of 5 percent in credit card spending.

In addition to the rise in credit card spending, there has been a notable increase in the number of credit cards in use. Since January, over 5 million new credit cards have been issued. Consequently, the total number of credit cards in circulation reached an all-time high of 87.4 million, according to data from the Reserve Bank of India (RBI). This indicates a growing adoption of credit cards and a rising trend in their usage among individuals.

Throughout the financial year 2022-2023 (FY23),  card spending in India remained within the range of Rs 1.1 to 1.2 lakh crore. However, in May of the current year, card spending surged to an unprecedented level, reaching Rs 1.4 lakh crore, according to data from the Reserve Bank of India (RBI). This indicates a significant increase in consumer spending using credit cards.

The data further revealed that the average spend per card also reached a new peak, amounting to Rs 16,144. This indicates a higher average expenditure per card, reflecting increased consumer confidence and a shift towards digital payments.

The record-high credit card spending and the rise in average spend per card highlight the growing importance of credit cards as a preferred mode of payment and the increasing purchasing power of consumers in the Indian market.

HDFC Bank, a leading player in the market, had the highest number of  cards in circulation, with 18.12 million cards in May. The bank also holds the largest market share in terms of outstanding dues, accounting for 28.5 percent of the total industry-wide outstanding dues.