India’s credit card spending story is gathering speed every month, and the latest numbers from the Reserve Bank of India show a clear shift in consumer confidence, digital adoption and overall economic appetite. What started as a steady climb in July has now turned into a full-scale surge as the festive season, GST cuts and structural payment reforms come together.
This is not just a rise in transactions. It is a window into how Indian households are thinking, spending and preparing for the next phase of growth.
Spending cycle
Credit card spending in July 2025 touched ₹1.93 lakh crore, a 6 per cent rise from June, when it stood at ₹1.83 lakh crore. Compared to July 2024, the jump is even more striking at 12%, reflecting how sharply consumer behaviour has changed over the past year.
Point of sale transactions rose to ₹70,380 crore, driven by in-store retail, travel and discretionary shopping. Online and other credit card-linked transactions climbed to ₹1,23,469 crore, underscoring that digital purchasing continues to dominate larger-ticket spending.
New card issuances also picked up pace. July saw 4.26 lakh new cards, taking total outstanding cards to 11.16 crore, up from 10.45 crore last year.
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International and UPI trends show a broader shift
International credit card spending reached ₹7,467 crore, slightly lower than June but still healthy. Debit card international transactions also grew to ₹2,247 crore.
UPI payments, meanwhile, continue to expand rapidly. Total UPI value touched ₹25 lakh crore, indicating strong digital payment adoption across demographics. This number stood at ₹20.64 lakh crore last July, showing how much consumers now rely on digital rails for everyday finance.
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Demand meets festive tailwinds
India's credit card spending in September 2025 touched ₹2.17 trillion, the highest ever recorded, driven by the festive build-up, aggressive bank offers, and the biggest GST rate cuts in recent years.
This represents:
14% month-on-month growth
23% year-on-year growth
Private banks lead, but public sector banks gain ground
Active credit cards touched 11.3 crore in September, up from 10.6 crore a year earlier. Private banks remain dominant, but the landscape is shifting.
Private sector bank share dipped from 75.5% to 74.2%
Public sector banks gained share, supported by deeper reach in smaller towns and a push in digital adoption
Larger PSBs contributed the most to this growth, showing improved card strategy and better customer engagement
This shift indicates rising comfort among non-metro consumers with digital payments and reward-linked spending.
Per-Card spending hits a new peak
Average spending per card touched ₹19,144 in September, rising 15% year-on-year and over 12% month-on-month. Private bank customers spent an average of ₹20,011, while public sector bank customers saw a strong 30% jump, with average spending reaching ₹16,927. The festival season, e-commerce sales and richer loyalty programs played a big role in this rise.
Issuer-Wise Performance
The major players saw significant month-on-month jumps in spending:
HDFC Bank: ₹60,582 crore, up 12.45%
SBI Cards: ₹40,622 crore, up 22.86%
ICICI Bank: ₹41,920 crore, up 21.5%
Axis Bank: ₹26,043 crore, up 19.7%
Credit balances stay healthy despite rising spends
Credit card outstanding balances Indiastood at ₹2.82 lakh crore in September. This is slightly lower than August but comfortably above last year’s level. The share of credit card dues in total retail loans has fallen to 4.5%, indicating responsible repayment behavior even as spending rises.This is a strong indicator that consumers are not over-leveraging.
India’s card market set to reach ₹30.1 trillion in 2025
According to new GlobalData estimates, India’s card market will grow 9.4% in 2025 and reach ₹30.1 trillion, driven by multiple structural tailwinds. Financial inclusion through PMJDY, lower merchant fees, and the Payments Infrastructure Development Fund are expanding access and affordability. New regulatory rules allowing more players to enter banking services, along with rising digital acceptance among small merchants, are further accelerating usage. Growth in transit payments and booming ecommerce transactions is adding additional momentum. While debit cards still dominate in terms of volume, credit card adoption is rising rapidly as consumers increasingly value rewards, convenience and flexible payment options.
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Festive Demand and GST Cuts Add Another Layer of Strength
This year, income tax slab changes and GST rationalisation and cheaper prices across select product categories created even more room for discretionary purchases.
The road ahead for India’s credit ecosystem
The all-time highs in credit card spending are not random spikes. They reflect a broader transformation in how India spends, saves and manages credit. With digital rails expanding, bank strategies refining and consumers becoming more rewards-driven, the growth runway is long and healthy.
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