Credit cards spending decreases to the lowest level in 8 months amid exams and stagnation in the market, and RBI data

India’s credit card spending fell to the lowest level in eight months of 1.67 rupees in February, according to data from the Indian Reserve Bank (RBI). This decrease in consumer spending coincided with the start of the school’s board’s exams and a sharp decrease in issuing new credit cards, which decreased by half to 440,000 in February 820,000 in January.

The contraction in the stock markets in India during the first two months of 2025 also played a role in curbing large ticket expenses, especially in urban areas. The stock gains previously have been an important engine for such expenses. “

The issuance of major credit cards such as HDFC Bank, Sbi Cards and ICici Bank reported less than new cards in February compared to January, reflecting the broader trend of lower credit card use. The total number of credit cards in force increased slightly to 109.3 million at the end of February, an increase of 108.8 million in January 2025.

Consumer behavior also turned in February, where the selling point transactions fell to 62,124.91 rupees from 69,429.4 rupees in January, according to Business Standard. E -commerce payments witnessed a similar decrease, decreasing from 1.15 trillion rupees in January to 1.05 trillion rupees in February.

Distinguished credit card assets have grown at a slower pace on an annual basis of 15.6 %, reaching 2.9 rupees in the first nine months of the fiscal year. This is a blatant contradiction with growth by 32.5 % that was seen during the same period last year.

Despite the current contraction, the credit card industry is expected to continue to grow, albeit at a slower rate. The common effects of the most stringent lending policies, the high household debt, and economic fluctuations have created a difficult scene of the spending of credit cards in India.