Credit card spending rose 3% year-on-year to Rs 1.54 lakh crore in March, even as month-on-month activity jumped 20%, according to the Reserve Bank of India data.
The West Asia crisis has added a layer of uncertainty, contributing to cautious consumer behaviour, said analysts. Despite a tepid growth in value, volumes rose 7%.
In March, e-commerce reported a 1% rise in total spends in value terms and a 14% jump in volumes, while point-of-sale spends rose 6% in value terms, but a 2% fall in volumes.
Sanjay Agarwal, senior director at CareEdge Ratings, said: “Compared to February, spends in March rose simply because the calendar turned favourable. The month has more days, and it coincides with the peak wedding season, which naturally drives higher consumption.” The West Asia crisis hasn’t really impacted spending yet because oil prices have been controlled, so the transmission effect on consumers is limited for now, he added.
For February, the credit card spending momentum softened with total spends falling to 1.64% to Rs 1.28 lakh crore while month-on-month activity declined 11%. “The decline was driven by February being a shorter month (fewer transaction days), compressing overall spending. The growth rate also halved, reflecting the absence of festive and travel-related triggers,” said Agarwal.
Private sector banks continued to dominate the ecosystem, accounting for 72.2% of total spending in February 2026, though their grip is gradually loosening. For February 2025, the share was at 75.7%. Meanwhile, public sector banks (PSBs) gained significant ground, expanding their share to 22.1%, supported by deeper penetration in tier-2 and tier-3 markets and rising adoption of UPI-linked credit cards.