New Delhi: Issuance of new credit card has come to a standstill in the wake of the COVID-19 Pandemic. Amidst low income and increased inflation, people were seen spending less on credit cards.
New credit card issuance fell in the month of February, posting a decline of 47% year-on-year and 21.57% month-on-month, as per a data issued by the Reserve Bank of India.
Over 5.49 lakh new credit cards were issued in February, the RBI data showed. Private sector lender ICICI Bank was leading the pack of fresh issuances of new credit cards (36% new cards), the RBI data showed.
No. of outstanding cards as at the end of the month
STATE BANK OF INDIA: 11741211
AXIS BANK LTD: 7036379
HDFC BANK LTD: 15197803
ICICI BANK LTD: 10376124
INDUSIND BANK LTD: 1506654
KOTAK MAHINDRA BANK LTD: 2379210
YES BANK LTD: 914879
CITI BANK: 2645784
STANDARD CHARTERED BANK LTD: 1463859
Decline in credit card usage
The challenging situation due to coronavirus pandemic has further led to decline in usage of credit card transactions, experts said. Recognising the unprecedented challenges in the economic situation due to COVID-19, credit card users too are seem to be treading with caution.