look news india
Ahmedabad: According to the recent credit card spending data released by the RBI, credit card spending has tripled in the last three years to Rs. 18 lakh crore. Credit card spending has increased to Rs 18.31 lakh crore during the year ending March 2024. Three years ago in March 2021, this expenditure was Rs 6.30 lakh crore. Spending on luxury needs and entertainment has increased in India in the last decade.
Especially the corona pandemic has changed this trend to a great extent. Suddenly the corona virus is catching many people. People cannot save their lives with money.
Seeing this situation, the public and especially the millennial youth have changed their attitude towards life. Now the currency of spending from the money left after saving has changed and it is a completely contradictory attitude that if we spend first then we will pay the money later and then save. The synonym of this mentality is getting to us from the figures of Ughar expenditure.
It is noteworthy that the problems created in the economy after the Corona epidemic are now being resolved and consumer confidence is continuously increasing.
According to Reserve Bank of India data, the value of credit card transactions during the year ended March 2021 was Rs. 6.30 lakh crore, which increased to Rs. 9.71 lakh crore by March 2022 and Rs. 14.32 lakh crore by March 2023. Now it has crossed Rs. 18 lakh crore. Currently, the monthly expenditure of card users is more than Rs 1.50 lakh crore. In the month of March this year, the expenditure was Rs 164,459 crore, while in March 2021 this figure was only Rs 72,319 crore.
RBI data shows that the number of credit cards issued by banks has also increased rapidly to 10.18 crores by March 2024. A year ago, i.e. in March 2023, this number was 8.53 crores, 7.36 crores in March 2022 and 6.20 crores in March 2021.
As credit card issuance and cost are increasing, credit card balances are also increasing. Credit card outstanding has reached Rs 2,67,979 crore as of May 2024, while it was Rs 1,61,512 crore in 2022. Card balance is the amount received from customers after the interest-free grace period offered by banks.
Private banks dominate the credit card market
If we look at the banking sector of the country, State Bank is the largest bank and it is a government bank but private banks dominate the credit card segment. HDFC Bank is at the top with 2.11 crore credit cards. SBI has issued 1.91 crore cards so far. It is followed by ICICI Bank with 1.7 crore cards and Axis Bank with 1.43 crore cards. According to the data of the Central Bank, HDFC Bank in May 2024 reported Rs. 16,251 crore point of sale transactions and Rs. 25,155 crore e-commerce card usage.
