India’s Credit Card Spending Soars Over 15% To Rs 21.16 Lakh Crore In FY25: RBI

Credit card spending in India reached a new milestone in the financial year 2024-25 (FY25), climbing over 15 per cent to an all-time high of Rs 21.16 lakh crore, according to the latest data released by the Reserve Bank of India (RBI). This marks a significant jump from Rs 18.32 lakh crore recorded in the previous fiscal year, reflecting strong consumer demand and an accelerated shift toward digital and credit-driven payments.March 2025 alone saw monthly credit card spends soar to a record Rs 2.02 lakh crore, a steep increase from Rs 1.64 lakh crore in March 2024. February 2025 also reported healthy spending figures at Rs 1.68 lakh crore, further indicating robust year-end discretionary expenditure by consumers.The number of credit cards in use rose to 10.98 crore by the end of March 2025, up from 10.18 crore a year earlier, signaling continued consumer confidence in credit-based purchases and broader financial inclusion. HDFC Bank led the market in new issuances, adding 2.2 lakh cards in March. SBI Cards followed with 1.6 lakh new cards, while Axis Bank and ICICI Bank issued 1.3 lakh and 97,799 cards, respectively, as per the report."We are seeing stabilisation and improvement in the credit card portfolio, and we will be building back acquisition," said Arjun Chowdhry, Group Executive, Axis Bank. "The growth will be brought back cautiously and in a calibrated manner. We are now looking at faster growth than we had because we have seen a stabilisation that will allow us to deliver on that growth,” he added, as per The Economic Times report.Also Read: Buying Your First Home? Here’s How To Maximise Your Tax Benefits Under Sections 80C And 24(b)New Issued Credit CardsOverall, 5.7 lakh new credit cards were issued in March, up from 4.4 lakh in February, though still trailing the 12-month average of 7.1 lakh. Not all banks shared in the growth, however. Kotak Mahindra Bank, recently cleared to resume card issuance after an RBI ban was lifted in February, reported a net decline of 1.19 lakh cards. RBL Bank also saw a reduction, losing 35,000 cards following the end of its co-branding partnership with Bajaj Finance.Looking ahead, analysts expect card spending to remain steady in FY26, backed by strong consumption trends. However, the pace of new card issuance is likely to moderate, with lenders focusing more on cross-selling and maintaining asset quality rather than aggressive expansion.The RBI’s regulatory stance continues to emphasize caution. While it has relaxed norms for NBFC and microfinance loans, stricter rules for unsecured credit remain in place, signaling that a measured approach will define the sector’s growth strategy going forward.

Credit card spending in India reached a new milestone in the financial year 2024-25 (FY25), climbing over 15 per cent to an all-time high of Rs 21.16 lakh crore, according to the latest data released by the Reserve Bank of India (RBI). This marks a significant jump from Rs 18.

32 lakh crore recorded in the previous fiscal year, reflecting strong consumer demand and an accelerated shift toward digital and credit-driven payments. March 2025 alone saw monthly credit card spends soar to a record Rs 2.02 lakh crore, a steep increase from Rs 1.

64 lakh crore in March 2024. February 2025 also reported healthy spending figures at Rs 1.68 lakh crore, further indicating robust year-end discretionary expenditure by consumers.

The number of credit cards in use rose to 10.98 crore by the end of March 2025, up from 10.18 crore a year earlier, signaling continued consumer confidence in credit-based purchases and broader financial inclusion.

HDFC Bank led the market in new issuances, adding 2.2 lakh cards in March. SBI Cards followed with 1.

6 lakh new cards, while Axis Bank and ICICI Bank issued 1.3 lakh and 97,799 cards, respectively, as per the report. "We are seeing stabilisation and improvement in the credit card portfolio, and we will be building back acquisition," said Arjun Chowdhry, Group Executive, Axis Bank.

"The growth will be brought back cautiously and in a calibrated manner. We are now looking at faster growth than we had because we have seen a stabilisation that will allow us to deliver on that growth,” he added, as per The Economic Times report. Also Read: Buying Your First Home? Here’s How To Maximise Your Tax Benefits Under Sections 80C And 24(b) New Issued Credit Cards Overall, 5.

7 lakh new credit cards were issued in March, up from 4.4 lakh in February, though still trailing the 12-month average of 7.1 lakh.

Not all banks shared in the growth, however. Kotak Mahindra Bank, recently cleared to resume card issuance after an RBI ban was lifted in February, reported a net decline of 1.19 lakh cards.

RBL Bank also saw a reduction, losing 35,000 cards following the end of its co-branding partnership with Bajaj Finance. Looking ahead, analysts expect card spending to remain steady in FY26, backed by strong consumption trends. However, the pace of new card issuance is likely to moderate, with lenders focusing more on cross-selling and maintaining asset quality rather than aggressive expansion.

The RBI’s regulatory stance continues to emphasize caution. While it has relaxed norms for NBFC and microfinance loans, stricter rules for unsecured credit remain in place, signaling that a measured approach will define the sector’s growth strategy going forward..