Credit cards: From the first credit card issued by the Central Bank of India in 1980 to the digital cards linked to UPI, this payment system has come a long way in the past 45 years.
Currently, there are over 11 crore credit cards in India, per the latest RBI data. These include a variety of them – regular cards, travel cards, lifestyle cards, fuel cards, secured cards, UPI cards and many more. Customers with different priorities and goals opt for the cards which suit their needs.
Large banks to small finance banks
Earlier, credit cards were only issued by large banks to upwardly mobile people based on their credit scores, but now even small finance banks, including AU Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, issue these cards.
Priyanka Kanwar, co-founder of Falcon, says, “In the past few years, the profile of India’s credit card customers has broadened dramatically. What was once a product largely issued by bigger banks has now become accessible across segments. They are also no longer limited to large banks; small finance banks are now issuing them, and their strong distribution in tier-2 and tier-3 cities is helping penetrate untapped markets and bring new customers into the credit card segment.”
Deep discounts
It is believed that one of the key drivers of credit card adoption is steep discounts offered by large supermarket stores. These stores offer the option to repay the bill in 3, 6, 9, and 12 instalments at a 0% discount.
“In the space of consumer durables, including mobile phones, credit card users are able to access deep brand discounts and 0% interest. The seamless experience of opting for EMIs at checkout has further accelerated adoption,” adds Kanwar.
Secured cards
Typically, credit cards are issued to customers based on their credit score, which reflects their creditworthiness and ability to repay loans and credit. But what will happen to users who do not have a credit history?
Meanwhile, secured cards solve these problems by allowing customers to apply for credit cards against the collateral of a fixed deposit.
By using these cards for some time, they can build their score gradually.
Credit card journey:
1980
The credit card journey commenced in 1980 when the Central Bank of India launched the first credit card in India, and named it the Central card. It was issued under the Visa network.
1990-2000
This decade kicked off a new era for credit cards, fuelled by the economic liberalisation of 1991, which opened doors to multinational banks. This shift encouraged the entry of global players, leading to features such as bundled insurance benefits, zero liability for fraud, and the introduction of reward point systems.
2000-2010
With the internet revolution, credit cards transitioned from physical retail tools to essential enablers of online commerce, with transaction volumes rising along with digital connectivity.
Certain key launches, such as the Indian Railway Catering and Tourism Corporation (IRCTC) in 2002, revolutionised ticket bookings via cards. This was followed by MakeMyTrip in 2005 and Flipkart in 2007, which made card payments a routine affair.
2010-2020
NPCI’s launch of RuPay in 2012 rolled out an indigenous card network, giving significant traction in tier-2 and tier-3 cities by 2018. This challenged Visa and Mastercard’s dominance.
Beyond 2020
By Sept 2022, the market crossed 100 million cards in circulation. In May 2025, there were 111.2 million active credit cards in the banking system.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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