Credit Card Spending: Till a few years ago, people used to make various types of papads to get credit cards. Having a credit card was also considered a symbol of a person’s prosperity. But now the circumstances are changing. Due to the strictness and new rules of the Reserve Bank of India (RBI), the expenses incurred on credit cards are decreasing rapidly. Even the discounts and offers available on credit cards are no longer attracting people. The situation is that compared to the financial year 2022, the expenditure on credit cards in this financial year has reduced to only one third. This is being seen every financial year.
The growth rate of credit card spending was only 16.6 percent.
According to the Business Standard report based on data from Macquarie Research, the growth rate of credit card spending in the financial year 2022 was 54.1 percent. After this, in the financial year 2023, this figure came down to 47.5 percent and in the financial year 2024, the figure came down to only 27.8 percent. In this financial year, the growth rate of credit card expenditure has remained only 16.6 percent. The action being taken by RBI against unsecured loans has had a negative impact on the spending done through credit cards. Every year, during the festive season, from September to December, credit card spending reaches its peak. But, this does not seem to be happening this year.
Big decline in the rate of new credit card additions
According to the report, the credit card portfolio of ICICI Bank has decreased by 4.4 percent in the financial year 2024. Earlier it was decreasing by 3.2 percent year after year. Similarly, the credit loss of SBI Cards was 7.4 percent in FY 2024 and 6.2 percent in FY 2023. Macquarie Research said in its report that we expect the slowdown in credit growth to continue in view of strict scrutiny and the impact of new RBI rules. Banks have also indicated increased stress in their credit card portfolios. By August in the financial year 2025, the rate of addition of new credit cards has also come down to 38.3 percent. It was growing at the rate of 41.3 percent in the financial year 2024.
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