Newz Desk, Durgapur: Credit cards—once viewed merely as a borrowing tool or a luxury—have now firmly entered the spending habits of India’s middle class. Fresh data following the rollout of the new GST rate structure on September 22 shows a sharp surge in credit card transactions, especially during the festival season.
A study by the State Bank of India (SBI), supported by Reserve Bank of India (RBI) data, reveals that credit card use has soared nationwide since the GST revisions. On September 23, the day after the new rates came into effect, India recorded over 1 crore credit card transactions worth ₹6,400 crore, a significant jump from the earlier daily average of 70 lakh transactions amounting to around ₹4,200 crore.
The spending peaked during Diwali on October 21, with 1.23 crore transactions worth ₹7,328 crore—a figure SBI called “stunning.” Overall, credit card transactions in September–October rose by around 5% compared to the same period last year.
Kolkata Leads All Major Indian Cities
The nationwide survey highlights Kolkata, Howrah, North 24 Parganas and South 24 Parganas as the key districts in Bengal driving this surge. Kolkata ranks first among all major Indian cities in the rise of credit card usage.
Compared to September–October 2024:
- In-store credit card spending in Kolkata increased by 135%
- E-commerce spending through credit cards rose by 59%
- Howrah recorded a 10% overall rise
- North 24 Parganas saw a 78% increase, and South 24 Parganas 82%
Cities like Jodhpur, Udaipur and Varanasi also recorded notable increases in credit card transactions.
Debit Card Usage Rising Elsewhere
States such as Haryana, Telangana, Andhra Pradesh and Karnataka lead in debit card–based purchases, with spending up 15–20%. In contrast, debit card spending in West Bengal dipped by 1% compared to last year, with Kerala trailing even further.
Why the Middle Class Prefers Credit Cards
Retailers say the shift towards credit cards is driven by flexibility and incentives.
“Now, 60–65 out of every 100 customers buy products using credit cards or EMI options,” said head of an electronic retail chain.
He noted several reasons:
- Credit cards allow payments to be made a month later
- Banks offer heavy discounts on credit card transactions
- Many cards feature zero-cost EMI options
- Large purchases can be paid over long tenures—for instance, a ₹1 lakh smartphone can be repaid over 24 months
“Regular repayments even reduce the total number of instalments,” he added.
As spending patterns shift, the credit card is becoming an essential financial tool for the middle class—especially in Kolkata, which is emerging as the country’s new capital of card-driven consumption.
Image courtesy@internet
