New Delhi: New credit card issuance has stalled after the COVID-19 pandemic. Amid low income and higher inflation, people saw less money spent on credit cards.
New credit card issuance fell in February, down 47% year-on-year and 21.57% month-on-month, according to data released by the Reserve Bank of India.
More than 5.49 lakh of new credit cards were issued in February, the RBI data showed. Private sector lender ICICI Bank led the package of new issuance of new credit cards (36% new cards), RBI data showed.
Number of open cards at the end of the month
STATE BANK OF INDIA: 11741211
AXIS BANK LTD: 7036379
HDFC BANK LTD: 15197803
ICICI BANK LTD: 10376124
INDUSIND BANK LTD: 1506654
KOTAK MAHINDRA BANK LTD: 2379210
YES BANK LTD: 914879
CITI BANK: 2645784
STANDARD CHARTERED BANK LTD: 1463859
Decrease in credit card usage
The challenging situation resulting from the coronavirus pandemic has further led to a decline in the use of credit card transactions, experts said. Recognizing the unprecedented challenges in the economic situation posed by COVID-19, credit card users also appear to be cautious.