Credit Card Spending Moderated 8% YoY in January 2026

Credit card spending in India eased in January 2026, easing from the high levels seen in December but still higher than January 2025, indicating a moderation in growth after festive season demand.

According to central bank data and market reports:

• Total credit card spends in January stood at ₹1.99 lakh crore, down from ₹2.05 lakh crore in December 2025.
• On a year-on-year (YoY) basis, spending was still about 8% higher than January 2025, when spends were around ₹1.82 lakh crore.

What Caused the Moderation?

Analysts say the drop from December to January reflects a natural post-festive decline in discretionary spending. December typically sees elevated spending due to year-end sales and festivities, which subsides in January.

Read More - Credit Card Economy Just Hit Rs 23.6 Trillion

Sweta Padhi, an analyst with IDBI Capital, noted that the growth rate returning to around 8% YoY suggests a normalisation trend after periods of stronger double-digit growth.

Active Cards and New Additions

The total number of active credit cards increased to 116.6 million in January, up from December’s figures. However, new card additions slowed, with around 8.68 lakh net adds compared with over 9 lakh in December 2025.

This slowdown in new cards points to tighter underwriting norms, as banks become more cautious about approving new credit card accounts amid regulatory guidance and focus on portfolio quality.

Bank-wise Trends

While overall spending moderated, reports show that some of the largest issuers saw sequential declines in January. For example:

• Major banks such as HDFC Bank, ICICI Bank, SBI and Axis Bank contributed significantly to the overall month-on-month dip in spends.

This trend suggests that the dip in January was not confined to a few banks but was widespread across the credit card industry.

Also Read -  Credit Card Spends Rise 13.57% in FY26

What This Means for Consumer Spending?

The moderation in credit card spending signals cooling momentum after the festive season, even though consumer demand remains higher than a year ago.

• Slower sequential growth points to post-festival adjustment rather than a sharp decline in spending activity.
• The rise in active cards shows that consumer engagement with credit cards is still strong, even if rapid expansion has slowed.

Bottom Line

Credit card spending in India moderated in January 2026, showing about 8% YoY growth as spending normalised after festive highs. While overall annual growth remains intact, the sequential dip and slowing new card additions reflect a more calibrated pace of credit demand and tighter underwriting controls.