RBI data hint at strong consumption revival

Despite being a seasonally weak period, August payments data from the Reserve Bank of India (RBI) set new records, pointing to a strong revival in consumption. The Unified Payments Interface (UPI) platform processed transactions worth more than ₹10.73 lakh crore in August, up 68% from the year earlier. Outstanding credit card loans continued their rise toward ₹2 lakh crore – they are currently at ₹1.62 lakh crore – pointing to a bumper festive period.

Mass retail payments platform UPI processed 6.57 billion transactions, up 85% from the year earlier.

“Since April this year, we have been witnessing a steady rise in both credit card issuance as well as spends,” said Anurag Sinha, cofounder and CEO, OneCard. “Besides, economic revival and growing consumer confidence, the rising share of ecommerce transactions, primarily steered by sale season and seasonal offers across product categories, has resulted in a sharp uptick in credit card spends.”

Revival in Air Travel, Hospitality

In addition to this, there’s been a revival in air travel and hospitality that has also led to a spurt in credit card spending.

“We are witnessing a significant surge in both leisure and business travel,” he said. “With people already making travel plans for the upcoming festive and holiday seasons and bookings witnessing a gradual spurt, we are anticipating further momentum in spends.”


Data show consumers are shifting back to credit card spending from debit cards as part of the post-Covid revival trend. While monthly credit card spends jumped 54% in July over the same period a year ago, debit card spends have risen by just 6%.

“Good monsoons, post-Covid normalisation of economic activities, pick-up in manufacturing and services, stabilisation of inflationary pressures, a well-capitalised financial system–all together brighten the outlook for an increase in demand for retail loan products and increased consumption,” said HT Solanki, general manager and head, mortgage and other retail assets,

. “In anticipation of a good festive season, we have come out with festive offers for various retail loan products.”

Outstanding loans on credit cards have been rising, having been at ₹1.26 lakh crore at the same time last year.

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