Mumbai: Credit card spending in India hit a record level of Rs 1.4 lakh crore in May, the data released by the Reserve Bank of India (RBI) revealed.
In the current fiscal year, the total spending or outstanding dues on credit cards have been steadily increasing at a monthly growth rate of 5 percent. This is a notable change compared to the previous fiscal year when the spending remained relatively stable or within a certain range throughout the year.
According to data from the Reserve Bank of India (RBI), the number of credit cards in circulation has witnessed a spike.
Since January, the number of cards in use has risen by over 5 million, surpassing a total of 87.4 million in the reporting month of May.
This milestone represents an all-time high in terms of credit card usage in the country.
The growing number of cards indicates a rising preference for credit-based transactions and highlights the increasing adoption of credit cards among individuals in India.
Out of the new credit card additions, a significant number of 2 million cards were used within the first two months of the current fiscal year. The data reveals that in January 2023, there were 82.4 million active credit cards in India. Since then, the number has shown a steady increase, reaching 83.3 million in February, 85.3 million in March, and 86.5 million in April.
According to RBI data, credit card spending during the fiscal year remained in the range of Rs 1.1-1.2 lakh crore.
However, in May of this year, it reached an all-time high of Rs 1.4 lakh crore.
The data also indicates that the average spend per card peaked at Rs 16,144.
HDFC Bank, the market leader, has the highest number of credit cards in circulation with 18.12 million as of May.
HDFC Bank also leads the market in terms of outstanding dues, accounting for 28.5 percent of the total industry-wide dues.
