Mumbai: Total credit card spending in India soared to ₹1.93 lakh crore in July 2025, marking a 6% increase from June and a remarkable 12% jump year-on-year. Data from the Reserve Bank of India (RBI) also highlighted a rise in new credit card issuances and increased POS transactions, despite a decline in international spending. Concurrently, the value of fraudulent transactions surged, raising concerns over security in the banking sector.
Significant Growth in Credit Card Transactions
Credit card spending in India has seen a dynamic shift, with total transactions hitting ₹1.93 lakh crore in July 2025, up from ₹1.83 lakh crore in June. This represents a strong 12% increase from ₹1.72 lakh crore reported in July 2024. With more individuals embracing cashless payments, this growth reflects a robust appetite for credit card usage amid a recovering Indian economy.
The increase is not limited to the overall spending figures; point-of-sale (POS) transactions also rose by 4.3%, reaching ₹70,380 crore. Other card transactions grew at an impressive rate of 6.7%. For example, a young professional named Riya recounted how she shifted to using her credit card for daily transactions, appreciating the rewards and cashback offers. “It feels convenient to process my payments quickly while earning some rewards in return,” she noted.
Rise in New Credit Card Issuances
The expansion of credit card spending is closely tied to a significant uptick in new card issuances. The RBI reported that 4.26 lakh new credit cards were issued in July 2025, bringing the total number of active credit cards to a staggering 11.1623 crore. This is a noticeable increase from 10.45 crore a year ago and slightly higher than 10.98 crore in March 2025.
This trend could reflect increased consumer confidence in the financial sector, particularly among younger millennials and Gen Z who are more inclined to utilize credit products. Many are enticed by the benefits that come with credit cards, such as travel perks and incentives for digital payments. Businesses across the country are also witnessing higher sales volume as consumers prefer the convenience of cashless transactions.
International Transactions and UPI Growth
Despite a surge in local spending, international credit card transactions fell by over 9.5% in July, totaling ₹7,467 crore, down from ₹8,251 crore in June. Comparatively, debit card international spending reached ₹2,247 crore for the same month. This dip may be linked to several factors including currency volatility and changing travel patterns post-pandemic.
Amid this economic landscape, Unified Payments Interface (UPI) transactions continue to gain traction. The total UPI payments for July 2024 saw an increase to ₹25 lakh crore, marking a growth of 4% from the previous month. UPI, known for its efficiency and ease of use, has become a preferred mode of transaction for consumers across various demographics, cementing its position in the Indian banking sector.
Concerns Over Fraudulent Transactions
While the rise in spending and credit card usage paints an optimistic picture for the banking sector, it has not come without its drawbacks. The total value of fraudulent transactions in July 2025 reached ₹440 crore, an alarming increase from ₹303 crore in June. This translates to approximately 1 in every 81,444 transactions being fraudulent, raising red flags about security measures in place for cardholders.
Consumers are advised to stay vigilant when using their credit cards. Experts suggest utilizing features such as transaction alerts and two-factor authentication to mitigate risks associated with fraudulent activities. “It’s essential never to underestimate the importance of cybersecurity in our financial transactions,” says financial advisor Sanjay Gupta.
The Future Landscape of Credit in India
As the credit card landscape evolves in India, the trends indicate a continuing shift towards digital payments and a growing reliance on credit facilities. The RBI’s latest figures showcase increased trust in the banking sector, but the rise in fraudulent activities calls for improved security measures and consumer awareness.
The Indian economy appears to be on a trajectory of recovery and growth, demonstrated by increasing credit issuance and consumer spending. As more Indians adopt digital trends, the interplay between convenience and security will define the future of credit in the country. Whether the growth will continue or face hurdles primarily depends on how the banking sector addresses the challenges of fraud and consumer trust moving forward.
Bankerpedia’s Insight💡
The recent surge in credit card spending in India, up 6% from June and 12% year-on-year, signals robust consumer confidence and growing reliance on digital transactions. This shift is reshaping the banking landscape, fostering competition among lenders and potentially driving innovation in financial products. However, the rise in fraudulent transactions, now totaling ₹440 crore, raises critical concerns about security. Consumers should remain vigilant, regularly monitor statements, and consider setting up alerts to safeguard against unauthorized activity. The evolving landscape underscores the importance of financial literacy in navigating these changes.
What Does This Mean for Me?🤔
- Salaried Person → Increased spending may affect budgeting and financial management.
- Business Owner → Increased consumer spending could boost sales and cash flow.
- Student → Increased credit options and potential for debt risks.
- Self-employed → Increased spending may affect cash flow and budgeting.
- Homemaker → Increased spending may lead to higher household expenses.
- Retiree / Senior Citizen → Increased credit fraud risk for vulnerable seniors.
- Job Seeker → Increased spending may signal more job opportunities.
- Farmer / Rural Citizen → Increased credit spending may raise debt concerns for farmers.
Research References📚
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