Festivals and GST Changes Drive 15% Increase in Credit Card Spending: RBI

India’s credit card market witnessed its highest-ever monthly spending in September 2025, with total transactions surging to ₹2.17 trillion. 

The growth, fuelled by festive-season demand and increased digital consumption, marks a 15% rise in average expenditure per card compared to a year earlier, according to data released by the Reserve Bank of India.

Average Exp Per Card Rises to Over ₹19,000 

The sharp increase in card usage reflects renewed consumer confidence and higher discretionary spending across e-commerce, travel, and retail segments. Average expenditure per card stood at ₹19,107.6, driven by a combination of online purchases and in-store transactions. 

Among leading issuers, HDFC Bank maintained its lead with an average spend of ₹23,959.8, followed by ICICI Bank at ₹22,817.6, and SBI Card at ₹18,892.3. Axis Bank also saw a strong 33% annual jump to ₹16,884.6. 

Public-sector lenders, traditionally slower in card adoption, reported significant year-on-year improvements as digital payment use expanded among their customer base.

Digital Payments Rise 25% YoY 

Online transactions accounted for the bulk of credit card spending, rising 25% year-on-year to ₹1.44 trillion. Point-of-sale (PoS) spending also registered healthy growth of 19%, touching ₹72,544 crore as in-store purchases picked up during the festive period. 

This shift highlights the deepening integration of digital payments in daily consumer behaviour, with online channels now contributing nearly two-thirds of total card spending.

Card Base Expansion and Market Outlook

India’s total credit card base grew to 113.4 million in September, up by over one million cards from the previous month and well above the 106 million reported a year earlier. The steady rise in issuances underscores the growing demand for credit-backed consumption, supported by rising incomes and widespread fintech adoption. 

Read More: Visa and Mastercard Ending 20-Year Feud: Merchants May Get Interchange Relief!

Conclusion

With record-high monthly spending and accelerating digital usage, India’s credit card industry is firmly in expansion mode. The sustained growth in both card issuance and average transaction value points to a strong festive quarter and an increasingly cashless consumer economy.

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