Due to credit card pressure, people’s expenses, arrears reached Tk 1.87 lakh crore. Credit card balances hit a record 29.6 percent in January

COVID-19 Credit card dues in January 2023 to boost consumer confidence and speed post-pandemic digitization (Credit Card Dues) 1.87 lakh crore, up 29.6 percent to a lifetime high. Reserve Bank of India (RBI) According to the latest data, credit card dues have increased by more than 20 percent in the first 10 months of the current fiscal year. The highest growth was 30.7 percent in June.

Rama Mohan Rao Amara, Managing Director and Chief Executive Officer, SBI Cards, said existing customers are spending more through their credit cards due to digitization of many categories. He said that easy payment facility has definitely contributed to the growth, especially in the categories of health and fitness, education, water and electricity bills etc.

In 11 months, it has increased more than one lakh crore

Talking about the monthly trend of credit card usage, Rao said that spending through credit cards has increased steadily over the last few months. In January this year, credit card spending was Rs 1.28 lakh crore, up from Rs 1.26 lakh crore in December 2022. Rao said the growth is 45 percent on an annual basis and credit card spending has remained over Rs 1 lakh crore for the past 11 months.

Continuous increase in arrears

At the end of January 2023, various banks have issued around 8.25 crore credit cards. In terms of issuing credit cards, the top five banks in the country include HDFC Bank, SBI Cards, ICICI Bank, Axis Bank and Kotak Bank. Reserve Bank data also showed that annual growth in credit card outstandings stood at 29.6 percent in January 2023, up from about 10 percent in the same month a year ago. The outstanding amount was Rs 1,41,254 crore in January 2022, which increased to Rs 1,86,783 crore in January 2023.