Credit card balance at historic high..!? RBI shock report..!

Sowmiya Sriram
Credit card balance at historic high..!? RBI shock report..!
According to the report published by the Reserve bank of india, the credit card balance of the people of india increased to an unprecedented level in January. If you don't pay back the amount on time then you will have to pay back the amount along with arrears and additional penalties. A credit card can have a huge impact on personal finances, but at the same time, it can be beneficial if used properly. Constant price rise, unemployment, rise in milk price, rise in loan interest rate, inflation, the list goes on and on. Gone are the days when it was enough for one person to work at home and earn money, but today people are lamenting that even if everyone goes to work, it is difficult to make a living.
However, it is true that people's interest in credit cards has not waned. Credit card balances in india rose by 29.6 percent to Rs 1.87 lakh crore in january, according to RBI data.
According to RBI's latest data, credit card usage has registered a growth of 20 percent in the 10 months of 2023, with the highest growth of 30.7 percent in June. With digitization, money transactions today have become very easy. indians use credit cards for everything from school fees, gym, electricity bills, restaurants, and home maintenance.
Rama Mohan Rao Amara, MD & CEO, of sbi Card, said that people have been spending more using their credit cards in recent times. Moreover, Rama Mohan Rao said that credit card spending has increased from Rs 1.26 lakh crore in december 2022 to Rs 1.28 lakh crore in january this year.Rao also said that credit card growth has increased by 45 percent year-on-year and credit card spending has consistently crossed the Rs 1-lakh crore mark in the last 11 months.
In january 2023 alone, nearly 8.25 lakh credit cards were issued by different banks. hdfc bank, Kotak, sbi, ICICI bank, and Axis bank are the top 5 credit card issuing banks in the country. Credit card outstandings in india are expected to grow at an annual growth rate of 29.6 percent in january 2023, from Rs 1,41,254 crore in january 2022 to Rs. 1,86,783 has been reported by the Reserve bank of India.

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