Credit Card Spending Moderates After Festive Season

Data from the Reserve Bank of India (RBI) shows that credit card spending in India continued to grow on a year-on-year basis in November 2025, but the pace of growth moderated following the festive season. According to RBI figures, total credit card spends for November reached approximately ₹1.89 trillion, representing an 11.5% increase compared to November 2024. This indicates that consumer adoption of credit cards remains strong, supported by deeper penetration in urban and semi-urban markets, as well as ongoing digital payment trends.

However, compared with the peak festive months of September and October, when spending often exceeds ₹2 trillion, November showed a month-on-month decline of roughly 11.8%–11.9%. This moderation is not seen as a slowdown in consumer activity but rather a return to pre-festive consumption levels after seasonal purchases tapered off. The pattern reflects normal post-festive correction, which is common in India, where festival-linked promotions, cashback offers, and higher discretionary spending temporarily drive up card usage.

The RBI data also highlights changes in consumer behavior. Average spending per credit card eased compared to the festive highs, suggesting that consumers are shifting from large discretionary or high-value festival purchases to more routine, essential monthly transactions. Despite the sequential dip, overall year-on-year growth remains positive, underscoring that credit cards continue to play a key role in consumption. Online transactions, in particular, account for a significant share of card spends, highlighting the structural shift toward digital payments and e-commerce adoption.

Credit card issuance in India continues to expand alongside spending trends. The total number of cards in circulation grew year-on-year, showing that more consumers are joining the card-based payment ecosystem. Banks and card issuers are actively onboarding new customers, and broader acceptance of cards is driving long-term growth in credit card usage. This expansion supports sustained consumer reliance on credit cards, even outside festive peaks.

Overall, the November 2025 figures indicate a healthy combination of seasonal moderation and structural growth. While post-festive spending naturally declines compared with September-October levels, the underlying trend remains positive. Consumers are increasingly relying on credit cards for both online and offline transactions, with usage patterns moving toward routine spending after temporary festival-driven spikes.

The RBI data suggests that the market is seeing continued adoption of credit cards, digital payments, and e-commerce transactions, which points to a strong and sustainable foundation for consumer spending in India. Even as average per-card spending moderates sequentially, the overall credit card base is expanding, reinforcing long-term confidence in the sector.

In summary, November 2025 saw moderated credit card spending post-festive season, yet year-on-year growth stayed strong, reflecting structural adoption, e-commerce penetration, and digital payment trends, while the growing card base signals continued reliance on credit cards for consumption.