#RBI #CreditCard #DigitalPayments #UPI #IndianEconomy #CreditCardSpending #CashlessIndia #Fintech #Banking #DigitalIndia #ConsumerSpending #CyberSecurity
Mumbai: Credit card usage in India has touched an unprecedented high, marking a significant milestone in the country’s digital payment journey. According to the latest Reserve Bank of India (RBI) data, credit card spending surged to an all-time record of ₹1.93 lakh crore in July 2025, registering steady growth both on a month-on-month and year-on-year basis.
This milestone underlines the strong momentum in digital adoption, increasing consumer reliance on plastic money, and the wider integration of credit cards in day-to-day transactions across urban as well as semi-urban markets.
Record Surge in Spending
As per RBI’s figures, spending through credit cards rose by 6% compared to June 2025, when the usage stood at ₹1.83 lakh crore. On a year-on-year basis, credit card spending saw a jump of 12% over July 2024, when the total stood at ₹1.72 lakh crore.
Breaking down the transactions further, point-of-sale (POS) credit card spending stood at ₹70,380 crore in July, reflecting a 4.3% rise over June 2025. Meanwhile, other card-based transactions, which include online and recurring payments, increased by 6.7% month-on-month, reaching ₹1,23,469 crore.
The trend shows that Indians are increasingly using credit cards not just for retail and lifestyle purchases but also for a wide range of recurring and digital payments.
Rise in Credit Card Issuance
July also witnessed a significant increase in the number of credit cards in circulation. RBI reported that 4.26 lakh new credit cards were issued during the month, taking the total count to 11.16 crore cards across India.
In comparison, the number of cards in circulation stood at 10.45 crore in July 2024 and 10.98 crore in March 2025. The consistent increase signals not only rising consumer demand for credit-based products but also aggressive marketing by banks and financial institutions offering cards with rewards, cashback, and EMI-linked features.
International Transactions Show Decline
While domestic credit card transactions scaled new highs, international usage showed a decline in July. The total value of international transactions through credit cards fell to ₹7,467 crore, down 9.5% from June’s ₹8,251 crore.
For debit cards, international transactions showed a mild increase, with ₹2,247 crore recorded in July, up slightly from ₹2,182 crore in June. The decline in credit card international usage may be attributed to a slowdown in overseas travel, a cautious spending environment due to global uncertainties, and rising costs of international transactions amid forex fluctuations.
UPI Continues to Dominate Digital Payments
Alongside the surge in credit card spending, Unified Payments Interface (UPI) transactions continued their upward march. RBI data revealed that UPI transaction value touched ₹25 lakh crore in July 2025, up 4% from June’s ₹24.03 lakh crore.
In July 2024, UPI transactions were valued at ₹20.64 lakh crore, showing the massive scale at which digital payments have grown within a year. The convenience of peer-to-peer transfers, QR-based merchant payments, and growing acceptance among small businesses has fueled UPI’s dominance.
Concerns Over Rising Fraudulent Transactions
Amid the celebratory numbers, the RBI data also brought attention to an area of concern — the rise in fraudulent transactions. In July 2025, the total value of reported frauds stood at ₹440 crore, significantly higher than ₹303 crore in June 2025.
This translates to one fraudulent case per 81,444 transactions, highlighting the need for stronger digital security measures, better consumer awareness, and more advanced fraud detection systems. The increasing use of credit cards, especially in online payments, makes consumers more vulnerable to phishing, skimming, and cyber fraud attempts.
What Drives the Growth?
Several factors are driving this surge in credit card spending:
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Rising consumer confidence – The robust economic growth and rising disposable incomes have encouraged higher discretionary spending.
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Festive and seasonal demand – July typically marks the onset of pre-festive spending in India, boosting retail purchases.
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E-commerce boom – Online marketplaces, food delivery apps, and travel portals are encouraging credit card-linked offers.
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Reward programs – Aggressive cashback and reward schemes by card issuers have incentivized users to prefer credit cards over debit or cash.
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Digital-first ecosystem – Rapid digital adoption and smartphone penetration are making card usage seamless and convenient.
Expert Outlook
Industry experts believe that credit card usage will continue to rise in the coming months, especially with the upcoming festive season and increased adoption of “Buy Now, Pay Later” (BNPL) and EMI-based purchases. However, the simultaneous rise in fraud cases poses a serious challenge.
Financial analysts suggest that banks and fintech companies must enhance cybersecurity frameworks and invest in AI-driven fraud detection. Consumers, too, must remain vigilant, regularly check statements, and avoid sharing sensitive details.
Conclusion
The record ₹1.93 lakh crore credit card spending in July 2025 highlights India’s accelerating shift toward a cashless economy. While UPI continues to dominate in terms of transaction volume and convenience, credit cards are carving a stronger niche due to their credit benefits, EMI options, and reward-linked ecosystems.
As digital payments evolve further, the balance between growth and security will determine how sustainable this expansion is. With RBI keeping a close watch and financial institutions pushing for broader adoption, India’s digital payments landscape seems set for another phase of rapid growth.
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#RBI #CreditCard #DigitalPayments #UPI #IndianEconomy #CreditCardSpending #CashlessIndia #Fintech #Banking #DigitalIndia #ConsumerSpending #CyberSecurity
