Payments made through debit cards rose around 40 per cent to Rs 14,598 crore in the first seven months of the current fiscal compared to the corresponding period last year, indicating a spurt in economic activities.
During April-October period in 2008-09, the payment made through debit cards stood at Rs 10,489 crore.
Analysts said the rise in debit card payment is on expected lines as financial condition has improved in the last few months.
The payment made through debit card stood at Rs 2,572 crore in the month of October, highest in the current fiscal, according to a latest RBI bulletin.
In the corresponding month last fiscal, these payments were Rs 1,960 crore.
On the other hand, transactions made through credit card in the country declined by over 12 per cent in the first seven months of this fiscal to Rs 34,993 crore as shoppers decided against using their cards amid the ongoing economic slowdown.
The amount involved in such transactions till October last year was Rs 39,909 crore but started declining and managed Rs 65,355 crore in the complete financial year.
The credit card business has been on decline for the most months since November last year.
According to analysts, the retail credit disbursal has increased so it is surprising that credit card payment is going down. Reducing credit limit by some banks might have hampered the business, they said.
"The decline in payment made through credit card indicates that people could be averse to taking credit," said an economist.
