Why are people avoiding using credit cards?
From paying bills to shopping, credit cards have become an important part of life today. Along with UPI payments, credit cards have also played a very important role in the ever-increasing wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transactions. But spending through credit cards is decreasing.
Yes, people have spent the least through credit cards in the month of february in the last eight months. According to the Reserve Bank, only Rs 1.67 lakh crore has been spent through credit cards in the month of February. However, this figure of low spending through credit cards is of that month when most of the students were busy with their board exams, while the number of new credit cards issued has halved.
According to the Economic Times, 8.2 lakh credit cards were issued in january, which became 4.4 lakh in February.
Apart from this, one of the main reasons for the decline in the stock market in the last two months was this. Earlier, people used credit cards when their investments in stocks performed well. But, as the stock market has been continuously declining, most have refrained from shopping, especially in metropolitan cities.
Big credit card issuing banks like SBI, hdfc and ICICI added only a few new customers in the month of february as compared to January. However, the total number of cards used increased slightly from 10.88 crore in january to 10.93 crore in February.
According to business Standard, the spending habits of consumers have also started changing. Now people are also paying less with cards at stores, which decreased from 69,429 crores in january to 62,124 crores in February. Whereas, a decrease is also being seen in online payments, which decreased from 1.15 lakh crores in january to 1.05 lakh crores in February. Experts say that this industry will continue to grow but at a slow pace because of stringent lending policies, rising consumer debt and economic uncertainties.
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