Credit card spending in India fell to Rs 1.99 lakh crore in January, down from the festival-driven peak in December. Despite the monthly decline, spending rose over 8% compared to the previous year. The number of active cards reached 116.6 million, though new card issuances slowed amid stricter lending practices.
In January, credit card spending across India totaled Rs 1.99 lakh crore, marking a moderation from the elevated levels seen in December due to festival season purchases. This shift reflects a return to more typical growth patterns following the year-end surge in consumer activity.
Year-over-year, the spending figure showed an increase of more than 8%, indicating sustained demand in the sector. The total number of active credit cards grew to 116.6 million, highlighting broader adoption among consumers.
However, the pace of new credit card additions has decelerated. Banks have adopted tighter underwriting standards, influenced by regulatory measures aimed at curbing risks in unsecured lending. This caution comes as authorities monitor the rapid expansion of credit products to ensure financial stability.
The data, drawn from RBI reports, underscores a balancing act in India's credit market. While festive spending boosted December volumes, January's figures suggest consumers are resuming regular patterns without the seasonal push. Private banks, which lead in card issuances, have contributed to the rise in active cards but face headwinds from enhanced scrutiny on lending practices.
Overall, these trends point to a maturing credit card ecosystem in India, where growth continues but at a more measured rate under regulatory oversight.