New data from the Reserve Bank of India reveals that the nation’s credit card industry reached a significant threshold in May, officially crossing the 120 million active card mark. This milestone highlights the aggressive expansion strategies currently employed by major financial institutions across the country.
While the volume of active cards surged, the financial landscape shows signs of cooling regarding consumer spending habits. Total expenditure across these cards rose by 6.3% to reach ₹2.02 lakh crore, a figure that analysts note is growing at a much more moderate pace than the sheer issuance of new plastic.
Growth remains bolstered by a consistent influx of new users, with net additions climbing by 34% compared to the previous year. Approximately 1.02 million new accounts were activated during the month, proving that digital and physical acquisition channels remain highly effective.
Financial experts are now closely monitoring whether this divergence—rapid card issuance coupled with decelerating spending growth—signals a change in consumer sentiment or merely a shift in how Indian households manage their credit lines in the current economic environment.
