Credit Card NPAs surge 28% in 2024 amid soaring usage, rising consumer debt: RBI
The Reserve Bank of India (RBI) has reported a sharp rise in non-performing assets (NPAs) in the credit card segment, reflecting growing stress in unsecured consumer lending. According to the latest data, credit card NPAs jumped by 28.42 per cent to ₹6,742 crore during the 12-month period ending December 2024, compared to ₹5,250 crore in December 2023.
This increase comes despite the overall decline in gross NPAs of the banking sector, which fell from ₹5 lakh crore (2.5 per cent of advances) in December 2023 to ₹4.55 lakh crore (2.41 per cent) by December 2024. The credit card segment, however, showed a contrasting trend, with gross NPAs rising amid continued economic headwinds and rising consumer indebtedness.
Credit card outstandings grew to ₹2.92 lakh crore in December 2024, up from ₹2.53 lakh crore a year ago. The NPA ratio in this segment rose to 2.3 per cent, up from 2.06 per cent in the previous year. Notably, credit card NPAs have increased more than fivefold since December 2020, when they stood at ₹1,108 crore.
Despite banks tightening their overall lending norms, personal loans and credit cards have emerged as stress points. Credit card dues, being unsecured and carrying high interest rates—ranging from 42 to 46 per cent per annum on overdue balances—pose a significant risk for both banks and borrowers. A credit card account is classified as an NPA if dues remain unpaid for over 90 days.
The surge in credit card usage is evident in transaction data. The value of credit card transactions tripled over the past three years, reaching ₹18.31 lakh crore in the year ended March 2024, compared to ₹6.30 lakh crore in March 2021. Monthly credit card spends touched ₹1.84 lakh crore in January 2025, up from ₹64,737 crore in January 2021. Meanwhile, the number of credit cards issued rose to 10.88 crore in January 2025 from 6.10 crore in January 2021.
Bank officials attribute the rise in card adoption to attractive offers such as reward points, lounge access, and short-term credit facilities. However, they caution that failure to repay dues beyond the interest-free period leads to extremely high interest charges and credit score deterioration, increasing the risk of borrowers falling into a debt trap.
In response to rising exposure in unsecured lending, the RBI in November 2023 raised the risk weight on bank exposures to consumer credit, credit card receivables, and non-banking financial companies (NBFCs) by 25 per cent to 150 per cent. The central bank’s Financial Stability Report noted that while demand for credit remains strong, the move has moderated growth in personal loans and credit card receivables.
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EAM Jaishankar meets Jamaican PM, gifts over 10 BHISHM Cubes
Kingston (PTI): External Affairs Minister S Jaishankar on Monday met Jamaican Prime Minister Andrew Holness and discussed ways to further deepen "political, economic and people-to-people cooperation."
Jaishankar also conveyed greetings from Prime Minister Narendra Modi to Holness.
"Pleased to call on Prime Minister @AndrewHolnessJM in Kingston. Conveyed the greetings of PM @narendramodi," Jaishankar posted on X.
"Discussed deepening our political, economic and people-to-people cooperation. Value his commitment towards further strengthening India-Jamaica relations," the post further read.
Also, the external affairs minister handed over 10 BHISHM (Bharat Health Initiative for Sahyog Hita & Maitri) Cubes as a gift to Jamaica.
"Formally handed over 10 BHISHM Cubes as a gift from India to Jamaica, in the presence of PM @AndrewHolnessJM, Health Minister @christufton and FM @kaminajsmith," Jaishankar posted on X.
"The BHISHM Cube mobile hospital system, designed for rapid deployment, will help Jamaica during disasters and emergencies. The gift of these cubes is a statement of friendship, a commitment to disaster preparedness, and an outcome of innovation," the post said.
Jaishankar arrived in Kingston on Saturday evening, marking the first leg of his nine-day tour of Jamaica, Suriname, and Trinidad and Tobago, aimed at further strengthening India's strategic and cultural ties with the Caribbean nations.
Earlier in the day, he interacted with the Indian diaspora and discussed India's ongoing transformation in infrastructure, human development and technology-driven governance and entrepreneurship with them.
He also highlighted the cricket bond between both countries as India gifted a scoreboard to Jamaica.
A scoreboard was dedicated at Sabina Park in Kingston. It is the home of the Jamaica cricket team and is the only Test cricket ground in the Caribbean island nation.
The minister expressed hope that the new scoreboard would witness many memorable innings, including those symbolising the enduring friendship between the two countries.
Cricket has long been a strong cultural bridge between India and Jamaica, which is part of the West Indies cricket team.
Jamaican players, including Chris Gayle, Courtney Walsh and Michael Holding, have played a major role in shaping the legacy of West Indies cricket in the international arena, contributing to its dominance in earlier decades and its continued global appeal.
