Credit card spending in India increases by 5.5% in July, RBI data shows

Data from the Reserve Bank of India (RBI) indicates a notable increase in credit card spending in India for July, with expenditures rising by 5.5% from June, amounting to Rs 1.93 lakh crore. This rise underscores a recovery in consumer demand, as evidenced by the addition of 425,000 new credit cards, bringing the total number in circulation to 111.6 million. This expansion highlights a resurgence in urban consumption.

RBI data reveals that expenditures grew by 5.5% from June to Rs 1.93 lakh crore, a figure significantly higher than the previous year. Point-of-sale (POS) transactions via credit cards reached Rs 70,380 crore, a 4.3% increase from June, while other card-based transactions rose by 6.7%, reaching Rs 1,23,469 crore. This growth trajectory is indicative of recovering consumer behaviour.

Despite the increase in domestic transactions, international credit card transactions declined by over 9.5% in July to ₹ 7,467 crore, down from June's Rs 8,251 crore. Meanwhile, Unified Payments Interface (UPI) transactions continued to grow, reaching Rs 25 lakh crore, a 4% rise from June.

The report also flagged a rise in fraudulent transactions, with the total value increasing to £440 crore in July from £303 crore in June. This equates to one fraudulent case in every 81,444 transactions, posing security challenges for the financial sector.

Previously, unsecured retail segments such as credit cards experienced a 25% compound annual growth rate (CAGR) from FY21 to FY24. However, by May 2025, growth had slowed to 8.5% year-on-year due to rising stress and moderating demand. Nonetheless, key players like HDFC Bank and SBI Cards are propelling growth through strategic card additions.

HDFC Bank led the market in July, adding 315,000 credit cards to reach a total of 24.8 million. In contrast, SBI Cards, the second-largest issuer, added 66,640 cards, bringing its total to 21.2 million. After a significant June decline, ICICI Bank recovered with 67,664 new cards in July, indicating a strategic push to regain market share.

Axis Bank and Kotak Mahindra Bank also demonstrated recovery from previous declines, with Axis Bank adding 122,000 new cards. These trends signify dynamic changes in the credit card market as financial institutions adapt to evolving consumer behaviours and economic conditions.