India credit-card spending falls 2.8% in August as card additions slow

RBI data show credit-card spending declined ₹5,737 crore month-on-month to ₹2.02 lakh crore in August, while banks added 1.19 million cards, 5.6% fewer than in July. The slower spend and issuance pace points to moderating consumer-credit momentum.

— Source publishedThu, 24 Sept, 2026, 23:36 IST·First seen Thu, 24 Sept, 2026, 23:54 IST·Source ET Small Business

What happened

Reserve Bank of India · RBI data showed Indian credit-card spending fell 2.8% month-on-month to ₹2.02 lakh crore in August, while new card additions slowed

Key facts

  • Credit card spending fell 2.8% month-on-month to ₹2.02 lakh crore in August from ₹2.08 lakh crore in July
  • Absolute spending decline: ₹5,737 crore
  • Spending rose 5.9% year-on-year from ₹1.91 lakh crore in August 2025
  • Banks added 1.19 million cards in August, down 5.6% from 1.26 million in July
  • Total card base reached 124.1 million, from 122.9 million in July
  • Card base was 10.3% above 112.5 million a year earlier

Why this matters

Slower card growth may make bank and fintech partners more receptive to co-branded-card, loyalty, and installment-payment alliances that preserve customer acquisition efficiency.

What to watch

  • September and October RBI card-spend data, especially whether festive-season transaction value rebounds above August levels.
  • New-card additions, active-card ratios and average spend per active card.
  • Credit-card receivables growth, delinquency trends and lender commentary on underwriting standards.
  • E-commerce gross merchandise value, electronics sales, travel bookings and no-cost-EMI penetration during festival promotions.
  • Bank and issuer changes to cashback, merchant discount and co-brand acquisition programs.
  • Banks are likely to tighten acquisition economics, emphasizing pre-approved customers, co-branded cards and higher-income segments over broad-based card issuance.
  • Retailers and marketplaces may increase bank-funded discounts, no-cost EMI and cashback offers to protect festive conversion and average order values.
  • Consumer-facing businesses with high discretionary-ticket exposure may see greater reliance on promotions, pressuring gross margins if demand does not rebound.
  • Payment networks and fintech partners may prioritize spend activation and retention metrics over headline card-addition growth.