Credit cards in force shy of the 100 million mark, shows RBI data

December saw highest addition of cards in 2023

The proliferation of credit cards in India is on an upward trajectory, with the total number inching towards the 100 million mark.

As of December 2023, there were 97.9 million outstanding credit cards, with a record 1.9 million additions during the month alone, revealed the latest data from the Reserve Bank of India (RBI). The calendar year 2023 witnessed the addition of 16.71 million cards, a significant increase from the 12.24 million added in 2022.

This trend of growth has been consistent over the past five years, with the number of credit cards in circulation swelling by nearly 77 per cent from 55.53 million in December 2019. This uptick is driven by a combination of sustained push from banks and evolving consumer spending patterns. 

 

“The aggressive push for credit cards from banks and changes in spending patterns have led to the surge in credit cards in circulation. Nowadays, credit cards are allotted to a person according to their eligibility. Earlier, credit cards were not so easy to obtain. Banks have introduced several types of credit cards that have led to an increase in credit cards in force. However, they have started to reduce these now,” said Saurabh Bhalerao, associate director, CareEdge.

Bhalerao further noted that changes in spending consumer patterns and increased demand for credit cards are being driven by offers like “zero-cost EMI”.
 

In the private sector, HDFC Bank continued to lead with 19.81 million cards in circulation in December 2023, up from 19.51 million in November. Earlier this week, HDFC Bank announced that it had reached the 20 million mark in January this year. Other major players include SBI Card with 18.48 million cards, ICICI Bank with 16.48 million, and Axis Bank with 13.58 million.

Credit card spending among Indians rose to Rs 1.65 trillion in December 2023, up from Rs 1.61 trillion in November. This increase reflects mixed spending trends in point of sale (PoS) and e-commerce payments. While PoS transactions dipped slightly to Rs 58,300.18 crore from Rs 59,014.93 crore in November, e-commerce payments rose to Rs 1.06 trillion from Rs 1.02 trillion.

Transactions of leading credit card issuers also saw a surge. Transactions via HDFC Bank’s credit cards rose to Rs 44,771.87 crore in December from Rs 42,049.32 crore in November. Similarly, ICICI Bank's card transactions increased to Rs 28,213.32 crore from Rs 27,772.63 crore, and Axis Bank posted a rise in transactions to Rs 19,055.30 crore from Rs 18,582.84 crore. However, transactions on SBI Card, issued by the public sector lender, dropped to Rs 29,249.29 crore from Rs 31,407.57 crore in November 2023.

Overall, credit card transactions in December 2023 reported a 32 per cent year-on-year growth from Rs 1.25 trillion in December 2022, indicating a robust expansion.