COVID Impact: Credit card transactions in February fall 21.57%

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.