India Active Credit Cards Cross 120 Million Milestone in May

Indian financial institutions registered a 34% year-on-year surge in net credit card additions, deploying 1.02 million new cards in May 2026. This push propelled the nationwide volume of active credit cards past the 120 million milestone, despite a visible deceleration in consumer spending expansion.

The domestic credit card base expanded 8.3% year-on-year, climbing from the 111.20 million cards recorded in May 2025, according to fresh regulatory data released by the Reserve Bank of India.

Aggregate credit card expenditures reached ₹2.02 lakh crore during the month, contrasting with ₹1.90 lakh crore in May 2025 and ₹1.97 lakh crore in April 2026. This sequential rebound reflects a normalization in consumer behavior following the historical dip observed every April, though transactions remained lower than the ₹2.19 lakh crore high established in March 2026.

Credit card industry expansion persists within a high single-digit trajectory as financial institutions maintain cautious credit underwriting standards and adjust to heightened regulatory scrutiny over unsecured loan portfolios. Major card issuers remain focused on optimizing cost structures and boosting profitability, evidenced by ongoing reward devaluations and restructured spend-linked benefits.

Average monthly expenditures per card recorded a marginal sequential recovery, climbing to roughly Customary ₹16,778 in May 2026 against ₹16,495 in April 2026. Industry specialists anticipate that escalating digital payment integration will serve as a structural driver for long-term sector growth.

The short-term horizon for the Indian credit card ecosystem is projected to remain stable, propelled by accelerating digital transaction penetration, broader merchant networks, and steady private consumption. Nonetheless, rising credit stress across distinct unsecured retail portfolios—especially revolving balances and lower-value loan accounts—demands continuous operational oversight.

Commercial banks are expected to sustain a highly disciplined strategy regarding customer acquisition, credit line adjustments, risk assessment, and the monitoring of overlapping credit profiles across credit cards, personal loans, and point-of-sale consumer durable financing.

SBI Cards emerged as the leading issuer for the month, adding 181,851 net new card accounts. This marked the firm’s strongest monthly recruitment performance in recent cycles, recapturing the top ranking from ICICI Bank, which led the industry during the prior month.

ICICI Bank secured the second position by registering 168,344 monthly additions, while market leader HDFC Bank followed closely with 142,297 net new accounts.

Mid-tier banking institutions preserved their operational velocity during the month. IDFC First Bank expanded its portfolio by 87,227 cards, while Federal Bank outpaced it with 106,861 new card issuances.

Future Outlook

The Indian credit card ecosystem is shifting toward high-value retention rather than aggressive portfolio expansion. As the Reserve Bank of India maintains rigid risk-weight mandates on unsecured lending, credit card issuers are recalibrating co-branded partnerships and tightening entry-level approvals.

The industry will likely see further divergence between card acquisition rates and actual transaction values as premium card segments drive the bulk of absolute spending. Over the coming quarters, technological integrations like the Unified Payments Interface link to credit lines will dictate whether mid-tier banks can sustainably challenge dominant market leaders.

FAQs

What is the total number of active credit cards in India?

The total volume of outstanding credit cards in India crossed the 120 million threshold in May 2026, marking an 8.3% annual expansion from the 111.20 million cards tracked in May 2025.

Which bank issued the highest number of credit cards in May 2026?

SBI Cards secured the leading position by adding 181,851 net new credit cards, surpassing ICICI Bank and HDFC Bank to achieve its strongest monthly growth performance in recent series.

Why is credit card spend growth decelerating?

Credit card spending growth slowed to 6.3% year-on-year due to tighter underwriting criteria by banking institutions, ongoing reward point devaluations, and regulatory caution surrounding unsecured consumer debt.

What was the average spending per credit card in May 2026?

The average transaction volume per card improved marginally on a sequential basis to approximately ₹16,778 in May 2026, up from ₹16,495 recorded during April 2026.