Debit card payment up 40 per cent in Apr-Nov; credit card slips 11 per cent

MUMBAI: Indicating rising economic activities, the payments made through debit cards rose around 40 per cent to Rs 16,855 crore during the first eight months of the fiscal compared to the same period last fiscal, even as the credit card transactions saw an 11 per cent decline.

Debit card payments have increased to Rs 16,855 crore during the April-November period from Rs 12,047 crore during the corresponding period last fiscal, said the latest RBI bulletin.

According to analysts, rise in debit card payments is on expected lines as financial condition has improved during the last few months.

Debit card payments have been over Rs 2,000 crore each month from July, with the highest-- Rs 2,572 crore-- being in October. In November it touched Rs 2,256 crore.

On the other hand, credit card transactions declined by over 11 per cent in the first eight months of the fiscal to Rs 40,249 crore as shoppers decided against credit purchases.

"It is surprising that payment made through credit cards is on the decline. The credit disbursal has increased by banks and I expect it to go higher in the coming months," said an economist with a leading bank on condition of anonymity.