Credit cards in India to soon hit 100-million mark, RBI data reveals

livemint.com:

credit cards, with a record 1.9 million additions during the month alone, the latest Reserve Bank of India (RBI) data revealed. The calendar year 2023 saw 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. ALSO READ: These credit cards by top 5 banks including HDFC Bank, ICICI Bank offer free access to airport lounges “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, reported Business Standard.

Bhalerao further said that changes in spending consumer patterns and increased demand for credit cards are being driven by offers like “zero-cost EMI". Among the private sector players, HDFC Bank continued to lead with 19.81 million cards in circulation in December 2023, higher from 19.51 million in November. Earlier this week, HDFC Bank announced that it had reached the 20 million mark in January this year.