India’s credit card spending surged to a three-month high of Rs 2.19 trillion in March, driven by financial year-end transactions, according to the latest data released by the Reserve Bank of India. The sharp uptick reflects seasonal spending trends and a rebound from February’s slowdown.
Key Highlights
- India credit card spending hits Rs 2.19 trillion in March driven by strong year-end financial transactions.
- E-commerce and PoS transactions surge sharply as banks report strong growth in card spending.
On an annual basis, credit card spending in FY26 rose 11.98% year-on-year to Rs 23.62 trillion, compared to Rs 21.09 trillion in FY25. However, growth has moderated compared to previous years amid tighter regulations and cautious consumer behavior.
March Sees Strong MoM Recovery in Card Transactions
After dipping to the lowest level in February, credit card spending jumped 23.81% month-on-month from Rs 1.77 trillion, highlighting a strong rebound. February spending had declined due to fewer transaction days and weaker consumption trends.
- Point-of-sale (PoS) spending rose 16.36% to ₹78,470 crore
- E-commerce spending surged 28.38% to ₹1.41 trillion
The data indicates a continued shift toward digital transactions, with online payments significantly outpacing offline spending.
Private Banks Lead Credit Card Spending Growth
Among major issuers, private and public sector banks reported robust growth in March:
- HDFC Bank: Spending rose 29.62% MoM
- SBI Cards: Up 24.43% MoM
- ICICI Bank: Grew 19.6% MoM
- Axis Bank: Increased 26.35% MoM
The dominance of large banks continues, with top issuers controlling a significant share of overall card spending in India.
Year-End Boost and Strategic Shifts
Saurabh Bhalerao, Associate Director at CareEdge Ratings, noted:
“Credit card spending in March is generally high due to financial year-end transactions.”
He added that public sector banks are gaining market share, while private banks are focusing on risk-calibrated growth and cross-selling strategies, particularly targeting existing home loan customers.
Also Read: RBI Proposes One Hour Delay on Digital Payments Above Rs 10,000
Card Base Growth Slows Amid Rising Delinquencies
Total credit card numbers rose marginally to 118.63 million, reflecting:
- 0.79% MoM growth
- 7.96% YoY increase
However, issuance growth has slowed significantly compared to previous years due to rising delinquencies and tighter underwriting standards. Earlier, card additions had grown nearly 19% YoY in FY24 but have now moderated to around 8%.
Bank-Wise Card Issuance Trends
- HDFC Bank: 10.37% YoY growth to 26.31 million cards
- ICICI Bank: 4.62% YoY rise
- SBI Cards: 6.12% YoY growth
- Axis Bank: 7.56% YoY increase
Digital Payments Continue to Drive Growth
The latest trends underline a structural shift in India’s payments ecosystem, where digital and e-commerce transactions are becoming the primary drivers of credit card usage. At the same time, banks are increasingly focusing on customer retention, cross-selling, and controlled expansion to manage risks.
