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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CEC orders immediate arrest of those involved in post-poll violence in Bengal: Official
Kolkata (PTI): Chief Election Commissioner Gyanesh Kumar directed the authorities concerned to immediately arrest those involved in post-poll violence and vandalism in West Bengal, an official said on Wednesday.
The Election Commission's directive came after two persons were killed in alleged incidents of post-poll violence in the state on Tuesday, besides scores of party offices being ransacked.
The CEC issued instructions to the West Bengal chief secretary, director general of police, Kolkata police commissioner and directors general of central armed police forces, along with all district magistrates, superintendents of police and other officials, to maintain continuous patrolling in sensitive areas, he said.
"Those responsible for inciting violence and carrying out acts of vandalism must be arrested immediately," the official said, quoting the CEC's instruction.
The chief election commissioner also stressed the need for swift and firm enforcement of the law, he added.
This directive came amid concerns over law and order in parts of the state, with the Election Commission closely monitoring the situation, he added.
"We have been asked to remain on high alert and ensure that any attempt to disturb peace is dealt with firmly," a senior police officer said.
The state authorities have intensified vigil across districts, with coordinated efforts between the police and central forces to prevent any untoward incident, he added.
The assembly elections were held in West Bengal in two phases - April 23 and 29. The counting of votes took place on May 4.
The BJP sealed a landslide victory with 207 seats in the 294-member assembly, ending the TMC's uninterrupted 15-year rule in the state.
