Digital Divide: Credit Cards Soar as Debit Cards Stagnate in India's Financial Shift

India's financial landscape is witnessing a dramatic shift as credit cards surge in popularity, more than doubling in just five years. By December 2024, the number of credit cards in circulation reached a staggering 10.80 crore, up from 5.53 crore in December 2019 – a remarkable 95% increase. In contrast, debit cards have seen only modest growth, reaching 99.09 crore. This credit card boom coincides with a massive 6.7-fold increase in digital payment volumes over the same period. Private sector banks are leading the charge, commanding a 71% market share with 766 lakh cards issued.

Source: Reserve Bank of India (RBI) Payment System Report