People are keeping distance from credit cards!!!
Till a few years ago, people used to go through many troubles to get a credit card. Having a credit card was also considered a symbol of a person's prosperity. But now the situation is changing. Due to the strictness of the reserve bank of india (RBI) and the new rules, now the expenditure from credit cards is decreasing rapidly. The discounts and offers available on credit cards are also not able to entice people now. The situation is such that compared to the financial year 2022, the expenditure from credit cards in this financial year has remained only one-third. This is being seen in every financial year.
The growth rate of spending from credit cards remained only 16.6 percent
According to the report of business Standard based on the data of Macquarie Research, the growth rate of spending from credit cards in FY 2022 was 54.1 percent. After this, it was 47.5 percent in FY 2023 and the figure came down to 27.8 percent in FY 2024. The growth rate of spending through credit cards has come down to only 16.6 percent in this financial year. The action being taken by RBI against unsecured loans has had a bad effect on the spending done through credit cards. Every year, during the festive season from september to December, spending through credit cards used to reach its peak. But, this year it does not seem to be happening.
Big decline in the rate of adding new credit cards
According to the report, ICICI Bank's credit card portfolio has decreased by 4.4 percent in FY 2024. Earlier it was declining by 3.2 percent year on year. Similarly, the credit loss of sbi Cards was 7.4 percent in FY 2024 and 6.2 percent in FY 2023. Macquarie Research said in its report that we expect the slowdown in credit growth to continue given the impact of strict scrutiny and new RBI regulations. Banks have also indicated increased stress in their credit card portfolios. The rate of new credit card additions has also come down to 38.3 per cent in FY 2025 till August. In FY 2024, it was growing at the rate of 41.3 per cent.
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