Are Indian consumers spending differently now? Latest RBI data decoded and the way forward

India’s credit card ecosystem continued to show healthy growth in April 2026. Fresh data released by the RBI indicates that credit card transaction value rose 7 per cent year-on-year (YoY), reflecting continued growth in consumer spending activity.

The total value of credit card transactions increased from Rs 1.84 trillion in April last year to Rs 1.97 trillion in April 2026. The data suggests continued spending momentum across both online and offline channels.

Point-of-sale (PoS) transactions—a key indicator of physical retail activity—recorded a stronger growth of 8.76 per cent YoY. E-commerce transactions also expanded by 6.04 per cent YoY. Physical retail transactions grew faster than e-commerce transactions during the month.

The data also showed continued momentum in credit card adoption. Fresh card issuance rose 8.19 per cent YoY, indicating continued growth in card adoption.

How leading card players performed in April

Among major issuers, HDFC Bank retained its dominant position with a transaction value of Rs 58,106 crore, posting 12 per cent growth on a yearly basis and issuing nearly 24 lakh fresh cards.

SBI Cards emerged as the fastest-growing major player among peers, recording a 29 per cent rise in transaction value to Rs 37,940 crore, while issuing around 12.5 lakh cards during the period.

ICICI Bank was the outlier among large issuers, reporting a 7.35 per cent decline in transaction value to Rs 32,499 crore with fresh issuance of 9 lakh cards.

Axis Bank posted relatively modest growth of 3.87 per cent, with transaction value reaching Rs 22,023 crore and fresh issuance of approximately 11.3 lakh cards.

Morgan Stanley on SBI Cards

Global brokerage Morgan Stanley maintained an "underweight" rating on SBI Card with a target price of Rs 545, while highlighting some near-term pressures in spending trends.

According to the brokerage, SBI Card’s spending market share declined by 11 basis points month-on-month (MoM) to 19.2 per cent. Spending during April also fell 10.6 per cent sequentially, slightly weaker than the industry-wide decline of 10.1 per cent.

However, analysts pointed out that the moderation may not necessarily indicate weakening demand. March is typically one of the strongest spending months because of year-end offers, promotional campaigns and seasonal purchases. As a result, a softer MoM comparison in April is generally expected.

Despite the decline, SBI Card continued to show resilience in corporate spending categories, which Morgan Stanley believes remains a key area of strength.

What the latest RBI data may be signalling

As per RBI data, the momentum is continuing in India’s credit card environment. The physical retail payments grew better compared to e-commerce sales, while there was strong issuance along with the increasing customer base for issuers. Even though the growth in spending has slowed down in comparison to the previous month of March year-end, the YoY growth is still showing positive trends in credit card consumption.

Further ahead, the primary focus would be on whether credit growth can sustain itself, spending trends across both digital and physical channels, and whether credit card companies can manage their growth and profitability.

As of now, the RBI number clearly shows that one trend is certain: The credit economy is growing in India, and the growth in credit card usage is sustainable.