Credit card spending fell 5.9%, but last September was unusual

Economy No. 104 29 October 2026 · 2 min read · By Pranami Hayaran

Credit card spending in India fell 5.9% year-on-year to ₹2,03,938 crore in September 2026, according to RBI data. But this does not necessarily mean Indians are spending less. The comparison is skewed by an unusual jump in online spending a year ago.

Spending at physical stores rose 7.2% from a year ago. The entire decline came from online purchases, which fell 12.5%.

In September 2025, online card spending had jumped 21.7% from August, before falling 12.7% in October. The number of online payments rose just 4.2%, suggesting people were making larger purchases rather than more purchases. The average online payment was ₹5,725, up from ₹4,900 in August. The RBI does not specify what drove the jump.

The broader trend remains positive. Credit card spending grew 5.9% year-on-year in August 2026, and has risen every month since October 2025. Compared with September 2024, spending is up 15.7%.

Online payments are also becoming more frequent but smaller. Their number rose 22.3% over two years, while the average payment fell to ₹4,095 from ₹5,935 in September 2024.

So September's decline says more about an unusually strong month last year than a sudden pullback by consumers. Indians are making more online card payments, but spending less per payment.

Two lines of monthly credit card spending. Online spending runs near ₹120 thousand crore, jumps to ₹144 thousand crore in September 2025 and falls back to ₹126 thousand crore in October; shop-counter spending climbs slowly from ₹59 to ₹78 thousand crore.

A line of yearly growth in credit card spending between 5.9% and 11.5% from October 2025 to August 2026, dropping below zero to minus 5.9% in September 2026.

Two lines of the average credit card payment. Online falls from about ₹5,900 in mid 2024 to ₹4,095 in September 2026, with a one-month spike to ₹5,725 in September 2025; shop counter falls from about ₹3,100 to ₹2,608.

Sources