Credit Card: Recently, people have started keeping distance from credit cards. In the last one year, the number of new credit card issues has declined by 50 percent. While 16 lakh cards were issued in October last year, in the year 2024, only 7.8 lakh cards were issued during this period.

RBI gave this advice to banks

Considering the risk of unsecured loans, the Reserve Bank has asked the banks issuing credit cards to keep more than 25% of the amount aside as risk capital. However, despite this, banks are showing interest in issuing credit cards, while in the second quarter of the year, many banks including Kotak Mahindra Bank, RBL, Axis saw a decline in loan repayments. 

The least number of cards were issued in May 2024

Domestic brokerage firm Anand Rathi says that while HDFC Bank issued the highest number of new credit cards at 24 per cent in October, SBI issued 20 per cent and ICICI and Axis Bank issued 7.8 lakh new credit cards. Breaking the record of the past several years, in May 2024, the banking sector was successful in adding only 7.6 lakh customers to the credit card, the lowest ever. However, if we talk only on an annual basis, then there was a 45 per cent decline in the number of credit card issues in the same month this year as compared to October last year. 

Lots of spending from credit card

A report also revealed that the total amount of credit card spending reached Rs 1.78 trillion in October 2024, which is 13 percent more than last year.