Pune Police have arrested three recovery agents of a private financial institution for allegedly beating up a man in full public view over his credit card dues.
Credit card transactions in India have surged over 2.6 times between 2021 and 2025, driven by private sector banks, while debit card usage declines due to growing adoption of UPI and digital wallets, according to an RBI report.
'First-time applicants may witness longer approval times or higher rejection rates and requests for more documentation.'
The Reserve Bank of India's (RBI's) Payment Systems Report highlighted that between 2019 and 2024, credit card transactions doubled in volume and almost tripled in value. During the same period, however, debit card transactions witnessed a decline, both in volume and value.
'Revolving credit without full repayment causes interest to outpace repayment capacity, and leads to financial distress.'
'Lack of self-control over spending leads to a credit card debt trap.' 'People think they have money and spend using a credit card, but when it's time to pay, they realise they don't have the money.'
Awareness about need to have good credit record prompts users to pay on time.
Banks are willing to help cardholders to settle dues.
'Credit card debt comes with high interest cost and stringent penalties.' 'If you do not repay on time, the costs balloon.'
According to data provided by Bankbazaar.com, for most banks, late payment fees range from Rs 100 to Rs 1,000, depending on the dues.
Some of the fintechs that will get impacted include Cred, Paytm, Phonepe and Amazon Pay, among others.
Over the past three years, the appointments of 20 candidates selected through the Institute of Banking Personnel Selection were cancelled or offers were withdrawn due to poor credit history.
Balance-level delinquencies in the credit card segment saw a 17 basis points (bps) year-on-year (Y-o-Y) rise in the quarter ending June 2024 (Q1FY25). In all other credit segments, including personal loans, delinquencies declined even as retail credit growth moderated, consequent to banks tightening the supply of credit to the unsecured segments, a report by TransUnion CIBIL said on Monday. Data shows that balance-level delinquencies, measured in terms of 90 days or more past due, in the credit card segment stood at 1.8 per cent in Q1FY25- highest among all other credit segments.
Credit card spending reached Rs 2 trillion in October, a 14.5 per cent rise from September, largely driven by festival season purchases. However, the volume of outstanding credit cards increased only marginally during the same period. The spike in spending comes at a time when nearly all major credit card issuers are calibrating their growth in the segment due to visible signs of stress.
Paying only minimum amount due on your outstanding credit card balance? You are just made for credit card companies!
Credit card spending in September recorded strong growth of 25 per cent year-on-year (Y-o-Y), marking the highest increase in six months. Even as many banks saw higher slippages during the July-September quarter of 2024-25, spending growth exceeded 20 per cent for the first time since February. According to the latest data released by the Reserve Bank of India (RBI), September spending reached Rs 1.76 trillion, compared to Rs 1.42 trillion in the same period a year ago. In August 2024, credit card spending was Rs 1.68 trillion.
Remember, the obligation lies with YOU. Not the credit card company.
'We are staying away from making forward-looking statements on when we will reach 1 trillion, etc. But growth will be rapid; it's only a matter of time.'
With rising disposable incomes in cities beyond metros, the penetration of credit cards - and consequently, credit card spending - is growing at a much faster pace than in traditional metro cities, primarily driven by e-commerce spending.
The net credit card additions in the banking sector nearly halved to 2 million in the first quarter of the current financial year (Q1FY25) from the previous quarter due to seasonal and regulatory factors. According to the Reserve Bank of India (RBI) data, the net credit card additions during the April-June quarter of FY25 stood at 2 million, 48 per cent lower than 3.9 million in the December-March quarter of FY24.
Major credit issuers, including the largest - HDFC Bank - have integrated their systems with the Bharat Bill Payment Systems (BBPS) for receiving credit card repayments via third-party applications.
Too much unsecured loan can harm your CIBIL rating.
'Spends are likely to increase from the current levels because recovery is yet to fully be over.'
Banks report you to the credit bureau if you default on your credit card payments. Here's what happens if you are blacklisted.
Secured credit cards offer benefits similar to regular credit cards and hence an applicant should try and get a card with lower fees and more features, suggests Sarbajeet K Sen.
Do not game the system to run away from repaying the money you owe to the credit card company.
Financial planning expert Anil Rego will answer your credit card queries in an online chat on Wednesday, October 14, between 2 pm and 3 pm IST
The central bank says interest on card balance should not be levied till next bill.
'You should be able to juggle them, extract the most rewards out of them, and most importantly, be able to repay your dues on time.' 'However, you shouldn't try to get multiple cards at once,' advises Adhil Shetty, CEO, BankBazaar.com.
Of course, NO! You must think of EMI option if and only if one is on the verge of defaulting on a payment.
Credit cards are no angel or devil. Spending habits and personal finance management make it what it appears to be. Let there be no illusion, think real, be wise.
We asked Get Ahead readers to send in their opinions on the credit card vs debit card debate. Here's their take on the advantages and disadvantages of credit and debit cards and the problems they faced after using their credit cards.
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