India has witnessed a massive growth in credit card adoption, with the total number of cards doubling from 5.53 crore in December 2019 to 10.80 crore by the end of December 2024. An RBI report highlights a remarkable surge, reflecting a major shift in how Indians handle transactions and access credit over the past five years. In contrast, the number of debit cards has remained relatively steady, rising modestly from 80.53 crore in December 2019 to just over 99.09 crore by December 2024.

According to an Economic Times report, a similar growth trajectory is also witnessed in card transactions as well as per the RBI report. During CY2024, there were 447.23 crore and 173.90 crore payment transactions worth of Rs 20.37 lakh crore and Rs 5.16 lakh crore through credit and debit cards, respectively.

Usage Of Debit Card

The report stated that debit card usage has reportedly declined, while credit card usage has surged, growing by over 15% year-on-year in recent years.
As of December 2024, India’s financial ecosystem is marked by extensive credit and debit card usage, with a staggering 109.9 crore cards in circulation nationwide. Public sector banks (PSBs) have played a significant role in this growth, issuing 257.61 lakh credit cards by the end of December 2024, a remarkable increase of over 110% from 122.6 lakh in December 2019.

“Private sector banks (PVBs), who hold a 71 per cent market share with 766 lakh cards in December 2024, have leaned into digital solutions and co-branded cards to cater to urban and affluent customers,” the RBI report noted. The Economic Times reported, citing the IANS agency.

Decline In Foreign Banks’ Credit Card

The report also highlights a decline in foreign banks’ credit card numbers, dropping from 65.79 lakh to 45.94 lakh, alongside a significant reduction in market share from 11.9% to 4.3%. This shift is likely attributed to high fees and conservative lending policies. Meanwhile, small finance banks (SFBs) have made a notable entry, issuing 10.97 lakh cards by December 2024, with a focus on financial inclusivity and targeting underserved segments.

With effect from January 1, 2019, the RBI has mandated the use of only EMV Chip and PIN-based debit and credit cards.

The scope of UPI has been broadened with the addition of RuPay credit card linkage for payments, and now it also allows transfers to and from pre-sanctioned credit lines from scheduled commercial banks, beyond just deposit accounts.

This means UPI will enable payments funded by bank credit, potentially lowering costs and paving the way for the development of unique financial products tailored to the Indian market, according to the RBI report.