Nearly 30% of credit card dues have grown as much as bank loans in a year.
By Crox Times Desk: For the first time ever, credit card dues crossed the mark over INR 2 Lakh Crore in April. Lenders believe that there are no major concerns as the share of credit card dues remains small as RBI cautioned over the rise of unsecured bank credit. As per the RBI Credit Card balances have hit over INR 2,000,58 crores in April 2023 and a 7% increase in April 2022.
The sudden increase in credit card dues is not just the indebtedness but it is also depicting the increased use of credit cards for payments and inflation. In April 2023 itself, the total value of credit used or swiped online cross the mark of 1.3 Lakh Crore.
While the increase in credit card transactions is usually witnessed as consumer confidence, growth in outstanding balances can be also because of inflation as people tend to pay more for the same purchases.
However, Bankers proclaim that they are issuing credit cards to customers who have creditworthiness and they check complete statuses like taxes, previous credit history, and other factors necessary. Now with digital India, they have more access to their target audience.
Despite rising spending and multiple card ownership credit card penetration in India is the lowest in the world. As per the reports of RBI, in the last 12 months that ended in April 2023 the share of credit cards in the bank dropped to 24. 3% to 26.2%.
