Taking a loan from banks and repaying it is a normal process, but default due to non-payment of such a loan is harmful to the common man, the bank, and the economy. Talking about such defaults, the biggest problem is in paying the credit card bill. The Reserve Bank has recently released data and said that the NPA of credit cards has increased to more than 28 percent in December.

According to RBI, there has been a huge increase in the use of credit cards in India in the last three years, but according to RBI, its NPA i.e. default has increased by 28.42% to Rs 6,742 crore in the 12 months till December 2024. It is clear that with the increase in the use of credit cards, the risk of default is also becoming serious. Customers need to spend wisely and pay on time, otherwise this facility can become a burden.

How much is due on credit card

According to RBI, in December 2023, the credit card loan outstanding was Rs 2.92 lakh crore, out of which Rs 5,250 crore was NPA, which has increased to Rs 6,742 crore in December 2024. In December 2020, the credit card NPA was only Rs 1,108 crore. This means that in the last 4 years, it has jumped by more than 500%. During this period, banks reduced their total NPA from Rs 5 lakh crore (2.5% of total loan) in December 2023 to Rs 4.55 lakh crore (2.41%) in December 2024.

Debt trap due to high interest

A bank official says that the highest default occurs in credit cards and personal loans. 42 to 46 percent interest is charged on credit cards. If a customer does not pay even after the billing cycle, then this account becomes an NPA. In this situation, the customer's credit score also falls and they also have to pay interest up to 42 percent. This is the reason that as soon as the credit card defaults, customers get trapped in the debt trap.

Credit cards reach close to 11 crores.

Despite the increase in defaults and NPAs, the number of credit issued by banks is increasing rapidly. As of March 2021, the value of total credit card transactions in the country 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 only Rs 64,737 crore. In January 2021, there were a total of 6.10 crore credit cards in the country, which has increased to 10.88 crore by January 2025.

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