New Delhi . There has been a huge increase in the use of credit card in India in the last three years. The reason for this is an increase in consumer spending and increasing trend of digital payments, but according to the latest data from the Reserve Bank of India (RBI), the NPA i.e. default in the credit card segment has increased by 28.42% to Rs 6,742 crore in the credit card segment in 12 months till December 2024. It is clear that with the increase in the trend of credit cards, the risk of default is also becoming serious. Customers need to spend wisely and pay on time, otherwise this feature can become a burden.

Credit Card Loan Outstanding Rs 2.92 lakh crore
According to RBI data, the credit card NPA was Rs 5,250 crore in December 2023, which has now increased to Rs 6,742 crore. This bounce has occurred in the recession in the economy. The total loan outstanding of the credit card segment in December 2024 was Rs 2.92 lakh crore, of which 2.3% (6,742 crore) is NPA. Last year, the figure was 2.06% on outstanding of 2.53 lakh crores.

According to an RTI reply, the credit card NPA was just Rs 1,108 crore in December 2020, that is, it has jumped more than 500% in the last four years. Surprisingly, during this time, banks reduced the overall NPA from Rs 5 lakh crore (2.5%of the total loan) to the overall NPA to Rs 4.55 lakh crore (2.41%) in December 2024.

Personal loans are full of defaulters
However, defaults in personal loans and credit card segment have increased rapidly. This problem is to increase in debt burden of borrowers. The outstanding of the credit card is unsecured (mortgaged without property) and has very high interest rates (42–46% annually). If a customer does not pay even after billing bicycle, this account becomes NPA. In this situation the customer's credit score also falls.

You may have to pay up to 42% interest
Greed, such as reward points, loan proposals and lounge facilities provided by banks, have attracted customers towards credit cards. But, a bank official warned, “Customers should understand that if they do not pay even after an interest-free period, interest of up to 42% may have to be paid, which will implicate them in a debt trap.”

Risk weight increased by 25% to 150%
In November 2023, the RBI had increased the risk weight of banks on a consumer credit and credit cards by 25% to 150% to control the rising risk in these segments. According to RBI's financial stability report, the move has affected the growth rate of personal loan and credit cards.

10.88 crore became the number of credit cards
Despite all this, the use of credit cards is continuously increasing. In March 2021, the price of credit card transactions was Rs 6.30 lakh crore, which increased to Rs 18.31 lakh crore by March 2024. In January 2025, this monthly transaction was recorded at Rs 1.84 lakh crore, while in January 2021 it was just Rs 64,737 crore. In January 2021, there were 6.10 crore credit cards in the country, which has increased to 10.88 crores by January 2025.