In a significant surge, credit card spending in India escalated by 27% year-on-year to reach Rs 18.26 trillion in the financial year 2023-24 (FY24), as per the latest data released by the Reserve Bank of India (RBI).
March 2024 alone witnessed a notable increase of nearly 10.07%, with credit card transactions amounting to Rs 1.64 trillion, up from Rs 1.49 trillion in February. This surge is attributed to the combination of year-end financial activities and festival sales during March.
Saurabh Bhalerao, associate director at CareEdge Ratings, commented, “The festival season and the fact that March is the year-end are likely to have driven transactions during the month on a sequential basis. Credit card spend will continue to grow although it is likely to moderate owing to a higher base and regulatory scrutiny.”
Of the total transactions in March, point of sale (PoS) transactions in the country rose to Rs 60,378 crore, while e-commerce payments increased to Rs 1.05 trillion. Among the major credit card players, HDFC Bank led with transactions worth Rs 43,471.29 crore, followed by Axis Bank, ICICI Bank, and SBI Card.
HDFC Bank’s credit card transactions grew by 8.57% from February to March, reaching Rs 43,471.29 crore. Axis Bank saw a growth of 8.05%, with transactions amounting to Rs 18,941.31 crore in March. ICICI Bank witnessed a significant rise of 14.49%, reaching Rs 30,733.11 crore, while SBI Card’s transactions rose by 7.32% to Rs 24,949.17 crore.
The total number of credit cards issued by banks in India reached 101 million by March 2024, showing a slight increase from the previous month. HDFC Bank leads the market with 20.59 million cards in circulation, followed by SBI Card with 18.89 million, ICICI Bank with 16.95 million, and Axis Bank with 14.21 million cards.
This substantial increase in credit card spending reflects the growing consumer confidence in digital payment methods and the convenience they offer. With the expansion of e-commerce and the penetration of credit cards in smaller towns and cities, this trend is expected to continue its upward trajectory, although it may moderate due to regulatory scrutiny and a higher base.
The RBI’s data underlines the pivotal role credit cards play in the Indian economy, facilitating transactions across various sectors and contributing to the growth of digital payments in the country.
