Indian credit card holders owed their banks ₹2 trillion in dues by April 2023, a new milestone. This is a significant increase from the ₹1.7 trillion in dues at the end of March 2022. The growth in credit card debt is being driven by a number of factors, including rising incomes, increased use of credit cards for online and offline purchases, and the introduction of new credit card schemes.
The high level of credit card debt is a concern for banks, as it exposes them to the risk of default. However, banks are also benefiting from the growth in the credit card market, as they charge high interest rates on outstanding balances.
In the year 2022-23, credit card transactions clocked ₹14.3 trillion. This is a growth of more than 20% from the previous year. The number of credit cards in India has also increased significantly in recent years, from 40 million in 2012 to 100 million in 2023.
The growth of the credit card market is a positive sign for the Indian economy. It shows that consumers are confident in the economy and are willing to spend. However, banks need to be careful about the level of credit card debt that they extend, as it could lead to a wave of defaults if the economy were to slow down.
As of today, July 14, 2023, the total credit card dues in India are estimated to be around ₹2.2 trillion.