Credit card defaults rose by 28% in 2024: Reserve Bank of India

Non-performing assets in the credit card segment rose by 28.42% in 2024, climbing to Rs 6,742 crore, reported The Indian Express on Monday, citing data from the Reserve Bank of India.

This marks a significant increase from the Rs 5,250 crore outstanding in the segment at the end of the 2023 calendar year.

In response to a Right to Information query filed by The Indian Express, the central bank stated that the gross non-performing assets, or NPAs, in the credit card segment accounted for 2.3% of the total Rs 2.92 lakh crore outstanding loans in December 2024. In comparison, NPAs made up 2.06% of Rs 2.53 lakh crore loans a year earlier.

Credit card NPAs have increased more than fivefold since December 2020, when they stood at Rs 1,108 crore.

A loan account is classified as a non-performing asset when the borrower delays repayment beyond 90 days.

The sharp rise in credit card defaults comes at a time when Indian banks have succeeded in reducing their overall gross NPAs. Total gross NPAs fell from Rs 5 lakh crore, or 2.5% of total advances, in December 2023 to Rs 4.55 lakh crore, or 2.41%, by December 2024.

However, NPAs in the personal loan and credit card categories have surged.

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