Credit Card Numbers Double in Five Years, Says RBI Report

According to a recent RBI report, credit cards have seen an annual growth rate of over 15% in recent years. Meanwhile, the usage of debit cards has declined. As of now, there are a total of 1.099 billion cards in circulation across the country, including both credit and debit cards. Private banks have issued the most credit cards, making them an essential part of many people's lives, with widespread usage for utility bills, shopping, and more. This is the primary reason for the rapid increase in the number of credit cards.

The latest RBI report reveals some interesting figures related to credit cards. According to the data, in December 2019, there were 55.3 million credit cards in circulation. By the end of December 2024, this number had more than doubled to approximately 108 million. In contrast, the use of debit cards remained steady. During the 2024 calendar year, credit cards facilitated 447.23 crore payment transactions worth ₹20.37 lakh crore. Debit cards, on the other hand, were used for 173.90 crore payment transactions, amounting to ₹5.16 lakh crore.

The report further indicates that credit cards have grown by more than 15% annually in recent years. However, the use of debit cards has seen a decline. Currently, there are 1.099 billion credit and debit cards in circulation across the country. Public sector bank (PSB) credit cards increased from 12.26 million in December 2019 to 25.76 million by December 2024, marking an over 110% increase. By the end of 2024, private sector banks held 71% of the credit card market share, with 76.6 million cards. These banks have adopted digital solutions and co-branded cards to meet the needs of urban and affluent customers. Co-branded cards are launched in partnership with popular platforms like Flipkart and Amazon, offering additional discounts on purchases made on these platforms.

Foreign banks, however, saw a decline in their credit card numbers. Over the past five years, the number of credit cards from foreign banks dropped from 6.58 million to 4.59 million. Their market share also shrank from 11.9% to 4.3% between December 2019 and December 2024. This decline could be attributed to higher fees and stricter credit policies implemented by foreign banks.

Small finance banks (SFBs) have also entered the credit card segment, issuing 1.1 million cards by the end of December 2024. These banks are primarily focused on underserved areas and are promoting financial inclusion in the country.