Growth of Plastic Money in India: Prospects and Challenges - An Analysis (International Journal For Multidisciplinary Research)

Summary

• Total credit cards in circulation exceed 122.86 million, with monthly spending consistently topping ₹2 trillion.p.6
• Annual credit card spend for financial year 2025 - 2026 hit ₹23.62 trillion.p.6
• Private sector banks hold over 71% of outstanding credit cards, led by HDFC Bank with 26.58, SBI with 22.42 and ICICI Bank with 19.37 million.p.6
• Annual debit card transaction volumes dropped by 67%, from 408.7 crore transactions in 2021 to 133.6 crore in 2025.p.7
• As of June 2026, credit card market share is led by HDFC at 22.10%, SBI at 18.60% and ICICI Bank at 16.10%.p.7
• In debit cards, SBI leads with a 25.00% market share, followed by Bank of Baroda with 8.00%.p.7

Key insights

1. Active credit cards reached 122.86 million by mid-2026.p.6
2. Credit cards recorded 602.38 crore annual transactions against 128.02 crore for debit cards.p.7
3. Debit card use has fallen as consumers bypass physical cards in favor of instant, zero-fee UPI transfers.p.7
4. Public sector banks control over 50% of the total loan market, against approximately 40% for private sector banks.p.8
5. Main challenges are cyber security risks, a preference for cash and competition from UPI.p.8
6. Merchant Discount Rate fees create resistance among small shopkeepers who prefer zero-fee UPI transfers.p.10