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Credit card spending in India moderated in August, falling nearly 3% from the previous month to ₹2.02 lakh crore, according to data from the Reserve Bank of India (RBI).
Despite the sequential decline, total spending remained above the ₹2 lakh crore mark for the fourth consecutive month and grew by almost 6% on a year-on-year basis.
The monthly slowdown was driven by a decrease in the average transaction value rather than a drop in card usage. Transaction volumes increased by 4.5% month-on-month, while the average ticket size fell to ₹3,200 in August from ₹3,440 in July.
The overall credit card base continued to expand, with outstanding cards reaching 12.41 crore. This represents a 10.5% increase from a year ago, supported by the addition of nearly 12 lakh new cards in August.
Private-sector banks maintained their dominance, accounting for 73.3% of total credit card spending in August, up 121 basis points from July.
Among the top four issuers, HDFC Bank was the only player to record a sequential increase in spending, which rose 1.8%. In contrast, SBI Cards experienced the sharpest contraction with a 10.8% month-on-month drop, while Axis Bank and ICICI Bank saw declines of 4.7% and 4.9%, respectively.
The data also revealed a shift in the spending mix. While online transactions continued to dominate, physical card swipes at machines grew at a faster pace of 9% year-on-year in August, compared to a 3.9% growth in online spending.
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Despite the sequential decline, total spending remained above the ₹2 lakh crore mark for the fourth consecutive month and grew by almost 6% on a year-on-year basis.
The monthly slowdown was driven by a decrease in the average transaction value rather than a drop in card usage. Transaction volumes increased by 4.5% month-on-month, while the average ticket size fell to ₹3,200 in August from ₹3,440 in July.
The overall credit card base continued to expand, with outstanding cards reaching 12.41 crore. This represents a 10.5% increase from a year ago, supported by the addition of nearly 12 lakh new cards in August.
Private-sector banks maintained their dominance, accounting for 73.3% of total credit card spending in August, up 121 basis points from July.
Among the top four issuers, HDFC Bank was the only player to record a sequential increase in spending, which rose 1.8%. In contrast, SBI Cards experienced the sharpest contraction with a 10.8% month-on-month drop, while Axis Bank and ICICI Bank saw declines of 4.7% and 4.9%, respectively.
The data also revealed a shift in the spending mix. While online transactions continued to dominate, physical card swipes at machines grew at a faster pace of 9% year-on-year in August, compared to a 3.9% growth in online spending.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
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