Credit Cards Spends

As per RBI bulletin, number of outstanding credit cards in India at December-11 was at 1.77 crores down from 1.8 crores at March-11. However, number of transactions and value of credit card transactions are showing a steady increase despite stagnation in number of credit cards.

Firstly, let’s have a look at count of credit card transactions. Number of credit card transactions for the first 3 quarters of FY 2011-12 was 234.8 million; a rise of 19.8% compared with that of the first 3 quarters of FY 2010-11.

Also the number of credit cards transactions is showing an average increase of 19.8% compared with same month of the previous year.

Credit card transactions for the first 3 quarters of FY 2011-12 were Rs. 707.11 billion; a rise of 27.6% compared with that of the first 3 quarters of FY 2010-11.

Credit card transactions touched Rs. 755.16 billion in value terms in FY 2010-11. Spends of the first 3 quarters of FY 11-12 has already crossed 94% of last financial year spends. Considering we can expect the current FY spends to be Rs. 963.85 billion on conservative basis and it will not be a surprise if it touches the magic figure of Rs. 1,000 billion.

Credit card transaction value	FY 2010-11 (Rs. billion)	FY 2011-12 (Rs. billion)
Till December (in first 3 quarters)	554.01	707.11
During the year	755.16	963.85 (projected)

Credit cards transaction in value term is showing an average increase of 27.9% compared with same month of the previous year.

However, average value of transaction per card is hovering in the range of around Rs. 2,700 to Rs. 3,100.

Note: Please note as per one of the reputed business newspaper websites, credit card transaction value in Dec-11 was up 53%. However, the correct percentage is 23%. Link of the site is:
http://articles.economictimes.indiatimes.com/2012-02-13/news/31055228_1_debit-card-card-transactions-credit-card
Refer the comment section also.

Source: RBI Bulletin (http://rbi.org.in/home.aspx)