Credit Card Spends Soar 14.5% in May 2025

India’s credit card spending continued its upward momentum in May 2025, reaching ₹1.89 trillion, a 14.5% year-on-year increase, according to data released by the Reserve Bank of India (RBI). This surge was backed by the issuance of nearly 760,000 new credit cards during the month. Major private sector banks like HDFC, ICICI, and SBI Cards led both in transaction volumes and card additions, highlighting rising consumer confidence and increased preference for digital credit-based transactions in the country.

Why in News?

The RBI’s latest monthly data highlights a significant increase in credit card spending in May 2025. This rise is noteworthy given its impact on domestic consumption, digital payment adoption, and banking sector growth. The trend is an important indicator of economic activity, reflecting robust demand and improved credit penetration.

Key Highlights

• Total Credit Card Spends in May 2025: ₹1.89 trillion (↑14.5% YoY, ↑2.7% MoM)
• New Cards Issued: 760,000 net additions in May
• Total Cards in Circulation: 111.19 million (↑7.64% YoY)
• Peak Month Comparison: March 2025 saw spends above ₹2 trillion

Bank-Wise Performance

HDFC Bank

• Leading issuer
• Spends: ₹51,747 crore (↑25% YoY)
• New cards: 274,819

ICICI Bank

• Spends: ₹34,515 crore (↑8%)
• Decline in card base: -31,645 cards

SBI Cards

• Spends: ₹32,389 crore (↑22.8%)
• New cards: 126,772

Axis Bank

• Spends: ₹22,455 crore (↑16.79%)
• New cards: 105,590

Objectives and Significance

• Encourage digital transactions and reduce cash dependency
• Boost financial inclusion via increased access to formal credit
• Promote consumer convenience and credit-based purchasing