The outstanding number of credit cards was 19.95 million at the end of October 2014, the Reserve Bank of India (RBI)'s latest data showed. Bankers claimed the card base had probably topped 20 million in the last two months, for the first time since February 2010.
The exponential growth in India's e-commerce space has helped. The country's 213-million internet population, as on 2013, saw five million additions every month. Consumers are now buying almost everything online - groceries, apparel, furniture, jewellery - and on most occasions are using cards for payments.
The entry of credit information companies has helped banks access comprehensive data of credit history of consumers.
"Credit information companies have played a key role in improving the portfolio quality," Kalpana Pandey, managing director and chief executive officer of CRIF High Mark Credit Information Services, said, "They enable credit card issuers to objectively evaluate risk of a potential client with various credit risk management products, including credit scores."
CRIF's study showed the average credit limits on credit cards had gone up in 2014 across the top 10 cities.
"The portfolio quality has also improved, with a reduction in the percentage of non-performing cards in 2014," Pandey said.
The exponential growth in India's e-commerce space has helped. The country's 213-million internet population, as on 2013, saw five million additions every month. Consumers are now buying almost everything online - groceries, apparel, furniture, jewellery - and on most occasions are using cards for payments.
The entry of credit information companies has helped banks access comprehensive data of credit history of consumers.
"Credit information companies have played a key role in improving the portfolio quality," Kalpana Pandey, managing director and chief executive officer of CRIF High Mark Credit Information Services, said, "They enable credit card issuers to objectively evaluate risk of a potential client with various credit risk management products, including credit scores."
CRIF's study showed the average credit limits on credit cards had gone up in 2014 across the top 10 cities.
"The portfolio quality has also improved, with a reduction in the percentage of non-performing cards in 2014," Pandey said.
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