Credit Card Spending Surges in India During FY 2023-24

Recent data released by the Reserve Bank of India (RBI) reveals a substantial increase in credit card spending during the financial year 2023-24. Year-on-year, credit card transactions rose by 27%, reaching Rs 18.26 lakh crore compared to nearly Rs 14 lakh crore in the previous year.

In March 2024 alone, credit card transactions saw a notable rise of 10.07%, amounting to Rs 1.64 lakh crore compared to Rs 1.49 lakh crore in February. This surge is attributed to the closure of the financial year and increased spending during festival sales.

Within the country, point of sale (PoS) transactions rose to Rs 60,378 crore in March from Rs 54,431.48 crore in February. Additionally, e-commerce payments increased to Rs 1.05 trillion from Rs 95,000 crore.

Among the major credit card issuers, HDFC Bank witnessed a transaction volume of Rs 43,471.29 crore in March, marking an 8.57% increase from February. Axis Bank recorded a transaction growth of 8.05%, reaching Rs 18,941.31 crore in March from Rs 17,528.97 crore in February. ICICI Bank’s credit card spends rose by 14.49% to Rs 30,733.11 crore in March compared to Rs 26,843.03 crore in February. SBI Card also experienced a 7.32% increase in transactions, totalling Rs 24,949.17 crore in March.

The total number of credit cards issued by banks in India reached 101 million by March 2024, up from 100.60 million in February 2024. HDFC Bank leads in credit card issuances with 20.59 million cards in circulation, followed by SBI Card with 18.89 million cards, ICICI Bank with 16.95 million, and Axis Bank with 14.21 million cards. This significant growth reflects the increasing adoption of credit cards for transactions across various sectors in India.