India’s Active Credit Cards Cross 120 Million in May as Card Adoption Hits New Milestone

Credit Card Base Surpasses 120 Million

India’s credit card market achieved a major milestone in May, with the number of active credit cards crossing 120 million (12 crore) for the first time. According to the latest Reserve Bank of India (RBI) data, the industry added 1.02 million new credit cards during the month, marking a 34% year-on-year increase in net additions.

The growth reflects rising consumer adoption of credit cards across urban and semi-urban markets, supported by digital payments, attractive rewards programmes, and increasing demand for unsecured retail credit.

Card Spending Grows at a Moderate Pace

Despite the sharp increase in card issuance, spending growth remained relatively modest. Credit card transaction value rose 6.3% year-on-year in May, indicating that while more consumers are entering the credit card ecosystem, spending habits remain measured amid evolving economic conditions.

Industry experts believe the trend reflects a shift toward broader financial inclusion, with new users adopting credit cards for everyday payments while maintaining disciplined spending patterns.

Leading Issuers Continue to Dominate the Market

The Indian credit card industry continues to be led by major issuers including HDFC Bank, SBI Cards, ICICI Bank, and Axis Bank, which together account for a significant share of cards in circulation and transaction volumes. Among them, SBI Cards recorded the highest net addition of new cards in May, highlighting strong customer acquisition momentum.

Banks are increasingly focusing on co-branded cards, digital onboarding, and UPI-linked credit card offerings to expand their customer base and improve engagement.

Digital Payments Fuel Long-Term Growth

The continued expansion of India’s digital payments ecosystem is expected to support sustained growth in the credit card market. Increasing acceptance of card payments, integration with digital platforms, and rising consumer confidence in cashless transactions are driving greater usage across retail, travel, dining, and online commerce.

While lenders remain cautious about asset quality and unsecured lending risks, the milestone of 120 million active credit cards highlights the growing maturity of India’s consumer credit market and the increasing role of credit cards in the country’s digital financial ecosystem.