Improved economic conditions in India have boosted the overall payment card usage in India, with debit cards growing significantly faster than credit cards, data from India’s central bank revealed.
Indian consumers in July spent 58.2 billion rupees (US$1.2 billion) on credit cards, up 17.3% from 49.6 billion rupees spent during July 2009. They initiated 21.8 million transactions, up 7.9% from 20.2 million during the same period a year ago, according to the Reserve Bank of India.
The number of credit cards in circulation in July fell 15.2%, to 18.9 million from 22.3 million a year ago.
Debit card sales volume in July increased 38.8%, to 29 billion rupees from 20.9 billion rupees. Debit card transactions in July increased 32.4% to 18.8 million transactions compared with 14.2 million a year earlier, the central bank says.
Indian financial institutions had issued 195.7 million debit cards at the end of July, up 29.4% from 151.2 million a year earlier.
An official from the central bank tells PaymentsSource that card usage is expected to grow as the Indian festival of Diwali (in November) approaches, prior to which Indians make many big-ticket purchases. “The recent spike in the stock exchange numbers has uplifted the mood in the country and that is reflecting in the purchases Indians are making,” he says.
What do you think about this? Send us your feedback.
