Concerns mount as credit card transactions reach ₹1.48 trillion ($17.8 billion) in August, signalling potential defaults. Read More>>
Surging credit card spending reflects growing household debt as savings decline, potentially leading to financial stress.
Economists warn that increased card usage suggests people are borrowing for expenses, with unsecured loans posing default risks
Banks aggressively target India's under-banked population, doubling retail loan portfolios since 2019, especially during the pandemic
Record-low rates drive retail lending, prompting policymakers to monitor the rapid growth in household debt
Balancing economic growth and responsible lending becomes crucial as credit card spending soars in anticipation of the festive season
The risk of defaults looms, especially if economic growth falters later in the year, making prudent financial management essential