Mumbai: Credit card use in India has surged sharply. As per data, the value of credit card transactions tripled in the last three years. Credit card spends surged to Rs 18.31 lakh crore during the year ended March 2024 from Rs 6.30 lakh crore in March 2021.
According to Reserve Bank of India, the value of credit card transactions rose from Rs 6.30 lakh crore to Rs 9.71 lakh crore during the year ended March 2022 and Rs 14.32 lakh crore as of March 2023. The monthly spends by card users are now above Rs 1.50 lakh crore and remained at Rs 164,459 crore in the month of March this year. It was Rs 72,319 crore in March 2021.
The number of credit cards issued by banks also rose rapidly to 10.18 crore as of March 2024 from 8.53 crore in March 2023, 7.36 crore in March 2022 and 6.20 crore in March 2021. However, credit card outstanding has gone up to Rs 267,979 crore as of May 2024 as against Rs 161,512 crore in 2022. Card outstanding is the amount due from customers after the interest-free period offered by banks.
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The credit card segment is dominated by private banks. HDFC Bank is the top card issuer with 2.11 crore credit cards followed by State Bank of India with 1.91 crore cards, ICICI Bank 1.7 crore cards and Axis Bank 1.43 crore cards. HDFC Bank reported point of sale (POS) transactions of Rs 16,251 crore and e-commerce card use of Rs 25,155 crore for the month of May 2024.
In FY24, out of Rs 18.31 lakh crore credit card transactions, as much as Rs 6.51 lakh crore was through POS transactions involving merchants and shops.
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