The amount of bank card transactions rose to 4.47 billion, from about 2.09 billion in 2019, whereas the worth of those transactions elevated to ₹20.37 lakh crore, from ₹7.13 lakh crore.
The variety of debit playing cards grew at a extra modest tempo, to 990.9 million from 805.3 million over the interval. Debit card transaction volumes, in the meantime, shrank to almost a 3rd at 1.74 billion, from 4.95 billion.
Credit score and debit playing cards have advanced at totally different paces to serve distinct monetary wants of Indian shoppers, the central financial institution famous. “Bank cards have change into the go-to choice for on-line spending, whereas debit playing cards are primarily used for money withdrawals and on a regular basis transactions. Nonetheless, each are more and more going through competitors from rising digital cost strategies,” the report acknowledged. Regardless of the rise of the Unified Funds Interface (UPI), bank card utilization has continued to develop at a gentle tempo of 15% yearly lately.
Credit score Card Debt Up 19%
In response to credit score bureau TransUnion Cibil, there was a slowdown in new originations for private and client sturdy loans since March final yr. This may increasingly have pushed shoppers to rely extra on current bank cards to satisfy consumption wants.
“The marked improve in bank card spending highlights its rising acceptance amongst shoppers, not only for transactions but in addition as a device to entry credit score,” stated Bhavesh Jain, managing director of TransUnion Cibil. “This presents a possibility for lenders to establish shoppers who want extra credit score for aspirations, and supply customised, inexpensive options.”
By finish of final yr, excellent private loans totalled ₹57.34 lakh crore, reflecting 13.3% year-on-year development, in contrast with a 30% improve within the prior interval.
In the meantime, excellent bank card debt rose to ₹28.9 lakh crore, rising by greater than 19%, though development price slowed from 34.2% within the earlier yr.
Debit card transaction values dropped from ₹6.83 lakh crore to ₹5.16 lakh crore throughout the identical interval.
Public sector banks noticed their share of the debit card market decline from 69.7% — with 561 million playing cards in December 2019 — to 64.5%, with 639 million playing cards on the finish of 2024. Personal sector banks elevated their market share from 21.3% with 171.2 million playing cards to 25% with 247.6 million playing cards in 5 years.
The variety of bank cards issued by public sector banks greater than doubled to 25.76 million, from 12.26 million as of December-end 2019. Personal sector banks, who held a 71% market share with 76.6 million playing cards by finish of 2024, have leaned on to digital options and co-branded playing cards to cater to city and prosperous prospects, RBI stated.