Credit card issuance growth halves in two years despite spending uptick
April 29, 2026
India credit card growth slows as RBI norms bite, with issuance cooling but spending rebounding on seasonal demand and e-commerce driven transactions
India credit card growth slows, outstanding cards up 8 percent in FY26 vs 19 percent earlier, RBI curbs hit issuance even as spends rise 12 percent and remain dominated by e-commerce
By Ritu Singh
India’s credit card issuance growth has slowed sharply over the past two years even as spending shows periodic strength, indicating a moderation in the segment’s overall momentum.
Outstanding credit cards stood at 118.6 million, rising just 8% year-on-year in FY26, a steep drop from the 19% growth seen in March 2024. The slowdown reflects the impact of tighter norms on unsecured lending introduced by the Reserve Bank of India in late 2023, which has altered growth dynamics across the industry.
The deceleration in card additions comes despite a visible uptick in spending, particularly in March. Total credit card spends rose nearly 24% month-on-month to ₹2.19 lakh crore, marking a three-month high and recovering from a softer February. However, the spike was largely seasonal, driven by year-end financial activity, including advance tax payments and bulk purchases.
On an annual basis, credit card spending grew 12% in FY26 to ₹23.62 lakh crore. While this remains a healthy expansion, it is notably lower than the high-teen growth rates recorded before regulatory tightening, signalling a more measured trajectory for the segment.
The market structure also continues to be concentrated, with the top five issuers accounting for around 74% of all outstanding cards. HDFC Bank remains the market leader, followed by SBI Card and ICICI Bank among others.
Also Read | Credit card payments: What RBI’s 3-day rule means for late fees and reporting
Spending patterns further underline structural shifts within the ecosystem. E-commerce continues to dominate credit card usage, accounting for 64% of total transaction value, while spending at physical points of sale is growing but remains secondary.
Overall, while credit card spending is not under stress and continues to recover on a monthly basis, the broader trend points to a cooling growth cycle. The combination of slower issuance and moderated annual spend growth suggests the segment is no longer expanding at the pace seen before regulatory tightening.
By Ritu Singh
India’s credit card issuance growth has slowed sharply over the past two years even as spending shows periodic strength, indicating a moderation in the segment’s overall momentum.
Outstanding credit cards stood at 118.6 million, rising just 8% year-on-year in FY26, a steep drop from the 19% growth seen in March 2024. The slowdown reflects the impact of tighter norms on unsecured lending introduced by the Reserve Bank of India in late 2023, which has altered growth dynamics across the industry.
The deceleration in card additions comes despite a visible uptick in spending, particularly in March. Total credit card spends rose nearly 24% month-on-month to ₹2.19 lakh crore, marking a three-month high and recovering from a softer February. However, the spike was largely seasonal, driven by year-end financial activity, including advance tax payments and bulk purchases.
On an annual basis, credit card spending grew 12% in FY26 to ₹23.62 lakh crore. While this remains a healthy expansion, it is notably lower than the high-teen growth rates recorded before regulatory tightening, signalling a more measured trajectory for the segment.
The market structure also continues to be concentrated, with the top five issuers accounting for around 74% of all outstanding cards. HDFC Bank remains the market leader, followed by SBI Card and ICICI Bank among others.
Also Read | Credit card payments: What RBI’s 3-day rule means for late fees and reporting
Spending patterns further underline structural shifts within the ecosystem. E-commerce continues to dominate credit card usage, accounting for 64% of total transaction value, while spending at physical points of sale is growing but remains secondary.
Overall, while credit card spending is not under stress and continues to recover on a monthly basis, the broader trend points to a cooling growth cycle. The combination of slower issuance and moderated annual spend growth suggests the segment is no longer expanding at the pace seen before regulatory tightening.