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Credit Card Boom in India, 10 crore Indians are now using Credit Card [Bank wise Data]


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Credit card usage in India has seen a significant increase in recent years, leading to a rise in defaults on credit card payments. The accessibility of credit cards has improved, with banks and financial institutions actively promoting their offerings. In the past, credit cards were not widely used due to strict eligibility criteria and limited financial inclusion. Bank wise credit card data is given below.

According to data from the Reserve Bank of India (RBI), the number of active credit cards in India was around 2 crore in 2011, which increased to 4.4 crore by the end of 2018. However, the real boom occurred between 2019 and 2023, with the number of active credit cards growing from 5.5 crore to almost 10 crore. In 2023 alone, over 1.6 crore credit cards were issued, indicating a compound annual growth rate of 20% in the credit card industry.

Alongside the increase in credit card issuance, spending through credit cards has also surged. In May 2022, credit card spending reached a record high of Rs 1.3 lakh crore, and it continued to rise, reaching Rs 1.72 lakh crore in October 2023. In the past three months alone, credit card spending accounted for nearly Rs 5 lakh crore, approximately 2% of India’s total GDP. This suggests that borrowing amounts through credit cards have also increased significantly.

Public Sector Banks Credit Card Data

BanksNo.
BANK OF BARODA2300723
BANK OF INDIA74400
BANK OF MAHARASHTRA32995
CANARA BANK938914
CENTRAL BANK OF INDIA0
INDIAN BANK199110
INDIAN OVERSEAS BANK82413
PUNJAB AND SIND BANK0
PUNJAB NATIONAL BANK532834
STATE BANK OF INDIA18605888
UCO BANK0
UNION BANK OF INDIA804755

Private Sector Banks Credit Card Data

BanksNo.
AXIS BANK LTD13753510
BANDHAN BANK LTD0
CITY UNION BANK LTD.27814
CSB BANK LTD.65439
DCB BANK LTD0
DHANALAKSHMI BANK LTD11167
FEDERAL BANK LTD925755
HDFC BANK LTD20103905
ICICI BANK LTD16797580
IDBI BANK LTD34106
IDFC FIRST BANK LTD2370704
INDUSIND BANK LTD2797275
JAMMU AND KASHMIR BANK LTD115879
KARNATAKA BANK LTD0
KARUR VYSYA BANK LTD10564
KOTAK MAHINDRA BANK LTD5971753
NAINITAL BANK LTD0
RBL BANK LTD5113532
SOUTH INDIAN BANK388514
TAMILNAD MERCANTILE BANK LTD32326
YES BANK LTD1911521

While the post-pandemic economic recovery has contributed to the growth of credit card adoption and spending, other factors such as the rise of e-commerce and contactless payments have also played a role. A report by PWC predicts that credit card adoption could grow at a much faster rate in the next four years. However, along with the increase in credit card usage, defaults on credit card payments have also risen. In 2022-23, credit card defaults amounted to Rs 4,072 crore, an increase of over Rs 950 crore compared to the previous year.

The Reserve Bank of India has expressed concern over this trend and is closely monitoring personal loans and unsecured lending to identify stress in the financial system. Despite efforts to slow down unsecured lending, banks have continued to provide credit card loans to riskier borrowers. In November 2023, the outstanding credit card balance of banks increased by 34% compared to the previous year, reaching Rs 2.4 lakh crore.

One of the reasons for the increase in credit card defaults is the allure of attractive offers, such as no-cost or low-cost EMIs, available on various products both online and in physical stores. These offers often lead to impulsive buying, resulting in a growing outstanding balance. When individuals choose to pay only the minimum balance due instead of the total amount, they fall into a debt trap, leading to defaults, low credit scores, and potential harassment.

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