Spike in credit card use and outstanding amount after demonetization
Indians are using credit cards a lot more after demonetization. They also collectively owe the banks 39% more money than they did a year ago, the Reserve Bank of India recently revealed. In September 2016, card holders had to pay the banks Rs. 43,200 crore. However, by September 2017 end, this amount rose to Rs. 59,900 crore, witnessing a 39% hike.
77.4% rise in credit card outstanding balance since 2015
Due to high incidence of defaults, on credit card outstanding balance banks charge monthly interest anywhere between 1.5% and 3.49%. Compared to 2015, there has been a 77.4% rise in the money that people owe the banks for availing credit card services.
32.65 million credit cards in the Indian market, says RBI
The massive cash crunch post demonetization forced Indians to switch to plastic money and digital transfers, and make more use of India's robust banking system. It therefore is no surprise that the number of credit cards in the market should increase as they did. There were 2.63 crore of them at the end of August 2016. After a year, they stood at 3.26 crore.
Sharp rise in home and personal loans in one year
There has also been an impressive surge in the money that the banks have given for home and personal loans in the last one year. Their personal loan portfolio has grown from Rs. 3,26,200 crore to Rs. 4,46,800 crore between September 2016 and 2017, recording a 19% hike. Loans for housing also increased from Rs. 8,05,800 crore to Rs. 9,08,600 crore in this time.
