Credit Card Growth in India: 5 Years, Doubling Numbers and Threefold Increase in Spending
According to the RBI report, in recent years, credit cards have grown by more than 15% annually. However, debit card usage has seen a decline. If we consider both credit and debit cards, there are 1.099 billion cards in circulation across the country. Private banks have issued the most credit cards. Credit cards have become an essential part of people's lives, used for everything from paying utility bills to shopping. As a result, the number of credit cards is increasing day by day. The latest RBI report presents some interesting figures related to credit cards.
According to RBI data, in December 2019, there were 55.3 million credit cards in circulation. This number more than doubled to around 108 million by the end of December 2024. On the other hand, debit card usage remained steady. During the calendar year 2024, a total of ₹20.37 trillion worth of transactions, involving 447.23 million payments, were made through credit cards. In contrast, debit cards were used for 173.90 million payment transactions worth ₹5.16 trillion.
The RBI report highlights that credit cards have been growing at an annual rate of over 15% in recent years. However, debit card usage has decreased. When considering both credit and debit cards, there are 1.099 billion cards in circulation in India. Public sector banks' (PSBs) credit cards grew from 12.26 million at the end of December 2019 to 25.76 million by the end of December 2024, marking a 110% increase.
By December 2024, private sector banks held 71% of the credit card market share, with 76.6 million cards. These banks have adopted digital solutions and co-branded cards to meet the needs of urban and affluent customers. Co-branded cards are launched in collaboration with popular platforms like Flipkart and Amazon, offering additional discounts for shopping on these platforms.
Foreign banks have seen a decline in credit card numbers. Over the last five years, their credit card count dropped from 6.57 million to 4.59 million, with their market share falling from 11.9% to 4.3% between December 2019 and December 2024. This decline could be attributed to foreign banks' higher fees or strict credit policies.
Small finance banks (SFBs) have also entered the credit card segment. By the end of December 2024, these banks had issued 1.1 million credit cards, focusing primarily on underserved areas and promoting financial inclusion.