RBI data shows record credit card spending of Rs 1.4 lakh crore in May.

MUMBAI:

In May, credit card expenditure reached a record high of Rs 1.4 lakh crore, according to the Reserve Bank of India.

The total expenditures or outstanding balances on credit cards, which remained flat throughout the previous fiscal year, have increased by 5% per month this year.

Similarly, the number of cards in use has increased by more than 5 million since January and surpassed 87.4 million in the reporting month, setting a new record in May, according to data from the RBI.

Two million of the new additions were utilised in the first two months of the current fiscal year.

In January 2023, 82,4 million cards were active in the United States. According to the data, the number reached 83,3 million in February, 85,3 million in March, and 86,5 million in April.

Credit card expenditures were in the region of Rs 1.1-1.2 lakh crore throughout FY23, but reached an all-time high of Rs 1.4 lakh crore in May of this year, according to data from the Reserve Bank of India (RBI). The data also revealed that the average credit card expenditure reached a new high of Rs 16,144.

In May, the market-leading HDFC Bank had the highest number of cards in circulation, at 18,12 million, and the highest proportion of outstanding dues, at 28.5% of the industry’s total.

ICICI Bank is in second place with 14.67 million cards in circulation, followed by SBI Card with 17.13 million.