Credit card expenditures in July of this year reached a record high of Rs 1.44 lakh crore, indicating a 5.5 percent surge compared to June. This figure surpasses the previous milestone of Rs 1.41 lakh crore recorded in May. According to data compiled by the Reserve Bank of India, the banking sector witnessed the addition of nearly 11.9 lakh credit cards in July. Consequently, the total number of outstanding credit cards rose to 8.99 crore, as compared to 8.86 crore in the previous month.

During June, credit card spending had declined to Rs 1.37 lakh crore, marking a 2.91 percent decrease compared to May. The data from the RBI reveals that most major credit card issuers observed an upswing in expenditures during July, resulting in the attainment of a new record in credit card usage.

What does the RBI credit card usage data reveal?

The credit card usage data released by the Reserve Bank of India (RBI) provides valuable insights into the patterns and trends in consumer spending. This data allows us to understand how individuals and businesses are utilizing credit cards for their monetary transactions.

By analyzing the RBI credit card usage data, we can gauge the overall health of the economy, identify spending patterns across different sectors, and assess consumer confidence. The data reveals information about the volume and value of credit card transactions, the types of purchases made using credit cards, and the geographical distribution of these transactions.

Furthermore, the RBI credit card usage data sheds light on the changing preferences of consumers. It helps us understand the shift towards digital payments and the increasing reliance on credit cards for everyday transactions. This is particularly relevant in the context of the ongoing digitalization drive in India.

Additionally, the data provides insights regarding the credit card delinquency rates and repayment behavior of cardholders. This information is crucial for financial institutions in managing credit risk and ensuring the long-term stability of the credit card market.

In conclusion, the RBI credit card usage data is a valuable tool for policymakers, economists, and businesses alike. It provides a comprehensive overview of the credit card landscape in India and helps shape strategies and policies for a robust and sustainable financial ecosystem.

The data stated that the share of PoS (point-of-sale) transactions fell from 36% in June to 34.3% in July. On the other hand, the share of e-commerce payments using credit cards rose to 65.7% from 64%.

HDFC Bank Takes the Lead in Credit Card Spending for July 2023

In the realm of credit card expenditures for the month of July 2023, HDFC Bank emerges as the front-runner.

HDFC Bank witnessed the highest volume of credit card transactions, totaling Rs 39,403 crore. The State Bank of India maintained its position as the second-largest spender in July. Meanwhile, ICICI Bank achieved the highest percentage-wise growth among lenders, with a surge of 12.2 percent. Kotak Mahindra Bank also observed a notable increase in credit card usage by 10.5 percent. HDFC Bank, SBI, and Axis Bank experienced a moderate rise in their credit card spends, ranging between 2 and 5 percent.

Credit card additions in July 2023

Card additions experienced a 1.3 percent increase in the month of July. The net addition of 1.19 million cards surpassed the 9.4 lakh cards added in June, although it fell short of the figures recorded in April and May, where over 1.2 million credit cards were added each month. HDFC Bank successfully maintained its position as the largest card issuer by adding 1.91 lakh cards, further solidifying its base of 18.5 million active cards.

Axis Bank saw an increase with 2.30 lakh cards. This was a surge from last month when the lender could add only 41019 cards.

The total number of credit cards issued by ICICI Bank has increased to 1.5 crore as it added 1.86 lakh cards in the month of July. Similarly, the State Bank of India acquired 2.07 lakh cards, bringing its total number of cards to 1.76 crore.

What could this indicate?

The rise in the utilization of credit cards might serve as an indication of heightened expenditure during the festive period. Correspondingly, the surge could imply that numerous enterprises will present credit card offers as the celebrations draw near.

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