India’s credit card metrics witnessed a sequential slowdown in August, marked by a contraction in total monthly spending and a moderated pace of new card issuances, according to the latest data released by the Reserve Bank of India (RBI).
Key Performance Indicators (August)
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Total Spending Drop: Credit card spending fell 2.8% month-on-month to ₹2.02 lakh crore, down from ₹2.08 lakh crore in July—representing an absolute decline of ₹5,737 crore.
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Year-on-Year Growth: Despite the sequential dip, spending remained 5.9% higher compared to August 2025 (₹1.91 lakh crore), pointing to broader annual expansion despite near-term moderation.
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Slowing Card Additions: Banks added 1.19 million new credit cards during August, a 5.6% decrease from the 1.26 million cards added in July.
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Total Card Base: The cumulative credit card tally reached 124.1 million at the end of August, up from 122.9 million a month prior and 10.3% higher than the 112.5 million recorded a year ago.
Underlying Market Trends
Industry analysts point out that the month-on-month contraction reflects a moderation in spending per card and a slight shift toward smaller-value purchases, following aggressive issuance sprees by major card-issuing banks in previous quarters.
