Synopsis
As of December 2024, credit card numbers in India have surged to 10.80 crore, more than doubling since 2019, according to a new RBI report. Debit card numbers remain stable, while transaction volumes for both types of cards have seen significant growth.Key Takeaways
- Credit cards in India exceeded 10.80 crore by December 2024.
- Debit card numbers rose slightly to over 99.09 crore.
- Transaction volumes surged to 447.23 crore for credit cards.
- Private banks dominate with 71 percent market share.
- SMEs and small finance banks expand their market presence.
New Delhi, Jan 28 (NationPress) The total number of credit cards has surged, exceeding 10.80 crore by the end of December 2024, a significant increase from the 5.53 crore cards recorded in December 2019, as detailed in a recent RBI report.
In contrast, the volume of debit cards has remained fairly consistent, experiencing a slight uptick from 80.53 crore in December 2019 to just above 99.09 crore by December 2024.
A similar upward trend is observed in card transaction activities, according to the RBI report. In the calendar year 2024, the number of payment transactions reached 447.23 crore for credit cards, amounting to Rs 20.37 lakh crore, while debit card transactions totaled 173.90 crore, worth Rs 5.16 lakh crore.
“Although the utilization of debit cards has seen a decline, credit card usage has surged by over 15 percent annually in recent years,” the report states.
As of December 2024, India’s financial environment is marked by the widespread use of credit and debit cards, with a remarkable total of 109.9 crore cards circulating across the nation.
The count of credit cards issued by public sector banks (PSBs) has grown from 122.6 lakh at the end of December 2019 to 257.61 lakh at the conclusion of December 2024, reflecting an increase of more than 110 percent.
According to the RBI report, private sector banks (PVBs) hold a dominant 71 percent market share, issuing 766 lakh cards by December 2024, and have adapted to digital innovations and co-branded cards to attract urban and affluent clients.
Conversely, foreign banks have faced a downturn, with their card issuance declining from 65.79 lakh to 45.94 lakh, and their market share dropping from 11.9 percent to 4.3 percent between December 2019 and December 2024, likely due to elevated fees and conservative lending practices.
Small finance banks (SFBs) have also entered the market with 10.97 lakh cards as of December 2024, aiming to serve the underserved demographic and promote financial inclusion.
Since January 1, 2019, the RBI has mandated the exclusive use of EMV Chip and PIN-based debit and credit cards.
Moreover, the scope of UPI has broadened to allow the linking of RuPay credit cards for payment transactions. This expansion now includes transfers to and from pre-sanctioned credit lines provided by scheduled commercial banks, in addition to standard deposit accounts.
“In essence, the UPI network will facilitate payments funded by bank credit, potentially lowering costs and fostering the development of unique products tailored for the Indian market,” the report concludes.
