Summary of this article
Credit card spending rises 20 per cent month-on-month in March
Year-on-year growth remains muted at 3 per cent
Volumes increase faster than value across e-commerce transactions
In March 2026, credit card spending rebounded sharply, increasing 20 per cent in the same month to reach Rs 1.54 lakh crore, as per the data issued by the Reserve Bank of India. The rise can be attributed to a rebound from the decline experienced in the last month, backed by more trading days and seasonal consumption trends.
Year-on-year growth was, however, moderate at 3 per cent, showing a slower rate of growth in aggregate spending value. Although short-term activity was enhanced, the bigger consumption patterns remained calm.
Volumes Surpass Values
The growth in spending value was not very high, with yearly growth of 7.2 per cent; on the other hand, the transaction volume grew at 7 per cent. Meaning, more transactions were being made, but the average ticket size remained under pressure.
E-commerce spending saw a slight increase of 1 per cent in terms of value, but volumes surged by 14 per cent, pointing to a higher number of smaller purchases. On the other hand, point of sale transactions recorded a 6 per cent increase in value, though volumes decreased by 2 per cent, indicating fewer and larger purchases at the physical stores.
Spending Driven By seasonal Factors
The March increase in spending was partially attributable to the seasonality. Consumption is usually increased during March due to weddings and related costs. Besides this, the month of March has an extra number of calendar days compared to February, which increases transaction activity naturally.
In February, credit card expenditure fell by 11 per cent, month-on-month, to Rs 1.28 lakh crore. The slowdown was also caused by the shorter length of the month and the lack of significant spending events, like festivals or travel.
Private Banks Lead
While private sector banks have continued to dominate credit card spending, their share has been gradually falling. In February 2026, private sector banks still led this segment, accounting for 72.2 per cent of total spending, even though their share has fallen from 75.7 per cent a year ago.
Public sector banks have been gaining traction, with their share rising to 22.1 per cent, driven by a further penetration in smaller cities and a greater adoption of Unified Payments Interface (UPI)-linked credit cards, making credit available to a larger number of new users.
Consumer Confidence Still Wary
Despite the March recovery, overall consumer sentiment appears cautious. Global uncertainties, including tensions in West Asia, have added to economic concerns. However, the direct impact on expenditure has been limited so far, partly due to stable oil prices.
