Synopsis: The Reserve Bank of India's recent data reveals a substantial surge in credit card spending in India during the 2023-24 fiscal year, with a 27% year-on-year increase totaling Rs 18.26 lakh crore. March 2024 witnessed a notable rise of 10.07% in credit card transactions, attributed to both year-end financial closures and increased spending during festival sales.
In March 2024, credit card transactions surged significantly by 10.07%, reaching a total of Rs 1.64 lakh crore, compared to Rs 1.49 lakh crore in February.
Recent data released by the Reserve Bank of India (RBI) indicates a significant surge in credit card spending in India during the financial year 2023-24.
Year-on-year, credit card spends escalated 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 experienced a notable rise of 10.07%, totaling Rs 1.64 lakh crore compared to Rs 1.49 lakh crore in February.
This increase is attributed to both the closure of the financial year and heightened spending during festival sales.
Point of sale (PoS) transactions within the country also saw an uptick, rising to Rs 60,378 crore in March from Rs 54,431.48 crore in February.
Additionally, e-commerce payments surged to Rs 1.05 trillion from Rs 95,000 crore.
Among the major credit card issuers, HDFC Bank led the pack with a transaction volume of Rs 43,471.29 crore in March, marking an 8.57% increase from February.
Similarly, 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 observed a credit card spend rise of 14.49% to Rs 30,733.11 crore in March compared to Rs 26,843.03 crore in February.
SBI Card also saw a 7.32% increase in transactions, totaling 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 led 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.
In conclusion, the data from the Reserve Bank of India underscores a robust growth trajectory in credit card spending throughout the fiscal year 2023-24, culminating in a substantial increase to Rs 18.26 lakh crore.
The surge in March 2024 transactions, alongside the upward trend in point of sale and e-commerce payments, reflects a buoyant consumer sentiment and heightened economic activity.
With leading banks like HDFC Bank, Axis Bank, ICICI Bank, and SBI Card driving transaction volumes, the credit card market in India continues to exhibit resilience and expansion.
As the total number of credit cards issued surpasses 101 million, HDFC Bank maintains its dominance in card issuance, indicative of its strong market position.
