Credit Card: People are staying away from credit cards, shocking revelation in the report

Credit Card: Recently people have started staying away from credit cards. In the last one year, the number of new credit card issues has declined by 50 percent. While 16 lakh cards were issued in October last year, only 7.8 lakh cards were issued in the year 2024.

RBI gave this advice to banks

In view of the danger of unsecured loans, the Reserve Bank asked credit card issuing banks to set aside more than 25 percent of the amount as risk capital. Despite this, banks are showing interest in issuing credit cards, whereas in the second quarter of the year, Kotak Mahindra Bank, RBL, Axis and many other banks saw a decline in repayment of loan amount.

Maximum number of cards issued in May 2024

Domestic brokerage firm Anand Rathi says that while HDFC Bank issued the maximum 24 percent new credit cards in October, SBI issued 20 percent and ICICI and Axis Bank issued 7.8 lakh new credit cards. Breaking the records of the last several years, in May 2024, the banking sector was successful in connecting only 7.6 lakh customers with credit cards, the lowest till date. However, if we talk only on annual basis, then compared to October last year, there was a decline of 45 percent in the number of credit card issues in the same month this year.

A lot of expenses are incurred through credit card.

A report also revealed that the total amount of credit card spending in October 2024 reached Rs 1.78 trillion, which is 13 percent more than last year.

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