The credit card transactions during September 2011 surged by 31.5% to Rs 7,693.81 crore compared to the same month of last year. However, number of credit card in circulation has declined by 4.3% to 1.76 crore as of September 30, 2011.
As per the latest data of Reserve Bank of India, in the first half of current financial year, credit card transactions increased by 30% to Rs 45,372.06 crore compared to the same period of last financial year.
While, in September 2011, the debit card transactions also increased by 37.3% to Rs 4,101.32 crore. The number of debit card in use increased by 23.6% to 25.19 crore debit cards compared to same period of last year. The transactions by debit card in first half of current financial year increased by 42.3% to Rs 24,585.19 crore.
Consumers preference to electronic payment system over traditional or old format of payment has led to this increased usage, especially in major urban centers. During last financial year, transactions via credit cards in India increased by 22.15% to touch Rs 75,515.68 crore in value terms. In addition, in 2010-11, debit card transactions went up by 46.46% to Rs 38,691.88 crore.