Credit card spending in India fell 5.9% year‑on‑year to Rs 2 lakh crore in September 2026, the first annual decline since February 2021, according to CareEdge Ratings analyzing RBI data. The dip follows a 13.3% month‑on‑month rise in September 2025 when GST cuts spurred online festive sales.
Growth had already slowed to 6.7% year‑on‑year in July and August from 7.9% in Q1FY27, and credit card spend rose only 4.9% in the first half of FY27 to Rs 12.2 lakh crore. Public sector banks saw a 9.3% decline in card spending, private sector 6.2%, while foreign banks grew 9.2% and small‑finance banks surged 92.4% on a small base.
Outstanding cards rose 10.5% to 12.5 crore in September, the fastest growth since November 2024. Banks added 12.6 lakh cards during the month, with the largest private bank issuing 1.4 million cards, up 19% from Q1, and SBI Card adding more than 1.1 million accounts, 18% higher than a year earlier.
Spending per card fell 14.8% year‑on‑year to Rs 16,305, while cardholders made 61 crore transactions, up 23.2% year‑on‑year, using each card 4.9 times versus 4.4 last year. Total transactions dipped 3.5% month‑on‑month, but daily volumes stayed flat.
Average transaction value fell 23.6% year‑on‑year to Rs 3,343, with online payments down 28% versus PoS 13%. SBI Card logged UPI‑linked spending of Rs 21,300 crore in Q2FY27, about a fifth of its total spend.
Credit card issuers expect a rebound in October as festive spending shifts, with CareEdge projecting Rs 2.3‑2.4 lakh crore spend that month.