Credit Card Spending Falls 16% from Festive Highs

Credit card spending in November decreased by 16.1% month-on-month (M-o-M) to Rs. 1.7 trillion, attributed to a moderation in consumer spending following the strong momentum of the festive season in October, according to the latest data from the Reserve Bank of India (RBI).
Meanwhile, the growth in credit card issuance also slowed significantly in November, with the industry adding just 350,000 net credit cards. This is a stark contrast to the 1.3 million net additions recorded during the same period last year.
The net additions of credit cards began to decelerate after the RBI, in November last year, increased the risk weight for banks on unsecured lending.
Following this measure by the RBI, major issuers have recalibrated their growth strategies in the segment, leading to a slowdown in credit card issuance.