Private sector banks continue to dominate in the credit card space in India, focusing on digital and co-branded offerings for customers, as their market share increased from 65.8 per cent in June 2020 to 70.8 per cent in June 2025, according to the Reserve Bank of India (RBI’s) latest payments system report.
The share of public sector banks (PSBs), meanwhile, grew from 22.5 per cent to 24.1 per cent during the same period. In contrast, the market share of foreign banks saw a steep decline, from 11.7 per cent to 4.1 per cent, as their outstanding credit cards reduced from 67 lakh to 45 lakh cards. Small finance banks (SFBs), meanwhile, issued 10 lakh credit cards by June 2025.
Credit card transactions have surged over the years, with transaction volumes increasing from 208.7 crore in 2019 to 447.2 crore in 2024, while value rose from ₹7.1 lakh crore to ₹20.4 lakh crore. In January-June 2025 period, 266.3 crore transactions amounting to ₹ 11.1 lakh crore were recorded.
Transactions in debit cards, however, have witnessed a decline since 2019, both in volume and value. Overall, as of June 2025, there were 111.64 crore outstanding cards in India, including 11.12 crore credit cards and 100.52 crore debit cards.
Broader payments systems
The report noted that the broader payments ecosystem in India has witnessed a sharp growth in recent years. In terms of volume, payment transactions grew from 3,248 crore in 2019 to 20,849 crore in 2024, and, in terms of value, from ₹1,775 lakh crore to ₹2,830 lakh crore during this period. In the half year ending June 2025, transaction volume was at 12,549 crore, amounting to ₹1,572 lakh crore.
“The CCIL-operated LVPS include the Government Securities Market, Forex Clearing, and Rupee Derivative Markets. In recent years, the CCIL transactions have observed an increasing trend. In terms of volume, they increased from 35 lakh in CY 2019 to 45 lakh in CY 2024, while, in terms of value, they increased from ₹1,270 lakh crore to ₹2,780 lakh crore during this period. During the first half of 2025, a total of 28.8 lakh transactions of ₹1,734 lakh crore in value were recorded,” the report said.
UPI, meanwhile, has become the most widely used retail fast payment system (FPS) in India because of its efficiency, round-the-clock availability, and ease of use. In January-June 2025, the volume of UPI transactions stood at 10,637 crore, amounting to ₹143.3 lakh crore in value. The lower average ticket size of UPI transactions indicates that UPI is used mainly for small value transactions.
Remittance, cross-border payments risks
The RBI report stated that India remains the top recipient of global foreign remittances, with a record $137.7 billion in inflows in 2024 – more than double that of Mexico, the second-highest recipient with $67.6 billion. The US, meanwhile, consistently leads global remittance outflows, sending $98.4 billion in 2024, significantly more than other countries like Saudi Arabia and Switzerland, which contribute $46.6 billion and $37.8 billion, respectively. Remittance outflows from Switzerland and Germany have also generally increased, the report said.
Among the emerging themes likely to shape cross-border payments, geopolitical risk stands out as particularly impactful, the regulator said. Geopolitical tensions pose significant risks to cross-border payments and financial flows, given the centralised nature of global financial infrastructure and reliance on select settlement currencies.
“Sanctions, restrictions on financial systems or currencies, and other operational barriers can disrupt markets and access. Affected countries may respond by developing bilateral or multilateral alternatives to safeguard against such disruptions,” it said.
Published on October 23, 2025
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