According to a new report by the Reserve Bank of India (RBI), the number of credit cards in circulation in India has more than doubled to approximately 108 million by the end of December 2024, compared to 55.3 million in December 2019. In contrast, the number of debit cards has remained relatively stable, with a slight increase from 805.3 million in December 2019 to just over 990.9 million in December 2024.
The report also notes a significant growth trajectory in card transactions. During the calendar year 2024, there were 4.47 billion credit card transactions and 1.74 billion debit card transactions, amounting to $277.70 billion (₹20.37 trillion) and $70.35 billion (₹5.16 trillion), respectively.
“While the use of debit cards has declined, credit cards have grown by more than 15% on a year-on-year basis in recent years,” the report stated.
As of December 2024, the financial landscape in India is characterized by the widespread adoption of credit and debit cards, with an astounding 1.099 billion cards in circulation throughout the country.
Credit card issuance by public sector banks (PSBs) increased from 12.26 million at the end of December 2019 to 25.76 million at the end of December 2024, a more than 110% jump.
“Private sector banks (PVBs), holding a 71% market share with 76.6 million cards in December 2024, have leaned into digital solutions and co-branded cards to cater to urban and affluent customers,” noted the RBI report.
Meanwhile, foreign banks have seen a decline in both numbers—from 6.58 million cards to 4.59 million—and market share, dropping from 11.9% to 4.3% between December 2019 and December 2024, possibly due to high fees and conservative lending policies.
Small finance banks (SFBs) have entered the arena with 1.10 million cards as of the end of December 2024, targeting the underserved and focusing on financial inclusivity.
Effective January 1, 2019, the RBI mandated the use of only EMV Chip and PIN-based debit and credit cards.
Additionally, the scope of the Unified Payments Interface (UPI) was expanded to allow linkage of RuPay credit cards to UPI for payments. This was further expanded to permit transfers to/from pre-sanctioned credit lines issued by scheduled commercial banks, in addition to deposit accounts.
“In other words, the UPI network will facilitate payments financed by credit from banks. This can reduce the cost of such offerings and help develop unique products for Indian markets,” said the report.
