
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
Banks | No. |
---|---|
BANK OF BARODA | 2300723 |
BANK OF INDIA | 74400 |
BANK OF MAHARASHTRA | 32995 |
CANARA BANK | 938914 |
CENTRAL BANK OF INDIA | 0 |
INDIAN BANK | 199110 |
INDIAN OVERSEAS BANK | 82413 |
PUNJAB AND SIND BANK | 0 |
PUNJAB NATIONAL BANK | 532834 |
STATE BANK OF INDIA | 18605888 |
UCO BANK | 0 |
UNION BANK OF INDIA | 804755 |
Private Sector Banks Credit Card Data
Banks | No. |
---|---|
AXIS BANK LTD | 13753510 |
BANDHAN BANK LTD | 0 |
CITY UNION BANK LTD. | 27814 |
CSB BANK LTD. | 65439 |
DCB BANK LTD | 0 |
DHANALAKSHMI BANK LTD | 11167 |
FEDERAL BANK LTD | 925755 |
HDFC BANK LTD | 20103905 |
ICICI BANK LTD | 16797580 |
IDBI BANK LTD | 34106 |
IDFC FIRST BANK LTD | 2370704 |
INDUSIND BANK LTD | 2797275 |
JAMMU AND KASHMIR BANK LTD | 115879 |
KARNATAKA BANK LTD | 0 |
KARUR VYSYA BANK LTD | 10564 |
KOTAK MAHINDRA BANK LTD | 5971753 |
NAINITAL BANK LTD | 0 |
RBL BANK LTD | 5113532 |
SOUTH INDIAN BANK | 388514 |
TAMILNAD MERCANTILE BANK LTD | 32326 |
YES BANK LTD | 1911521 |
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.