Credit card NPA increases to Rs.3,887 crore, RBI warns Banks

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The Reserve Bank of India (RBI) has expressed concern over the rising trend of non-performing assets (NPAs) in the credit card segment. In the nine months ended December 31, 2022, NPAs in the credit card segment jumped by 24.5% to Rs 3,887 crore. This is despite the fact that credit card NPAs make up just 2.16% of the total credit card outstanding.

The RBI has attributed the rise in NPAs to a number of factors, including the economic slowdown, job losses, and the rising cost of living. The central bank has also warned banks to be more cautious in lending to borrowers with poor credit history.

In order to address the issue of rising NPAs, the RBI has said that it will be closely monitoring the credit card segment. The central bank has also said that it may consider increasing the risk weight on unsecured personal loans, including credit cards.

The rising trend of NPAs in the credit card segment is a cause for concern for the RBI. The central bank is taking steps to address the issue, but it remains to be seen whether these measures will be effective.

Here are some additional details about the NPA issue in the credit card segment:

  • The rise in NPAs is being driven by a number of factors, including the economic slowdown, job losses, and the rising cost of living.
  • The RBI has warned banks to be more cautious in lending to borrowers with poor credit history.
  • The RBI is closely monitoring the credit card segment and may consider increasing the risk weight on unsecured personal loans, including credit cards.

The NPA issue in the credit card segment is a serious concern for the RBI. The central bank is taking steps to address the issue, but it remains to be seen whether these measures will be effective.

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