The Reserve Bank of India’s (RBI) push back against exuberance in unsecured loans has not had any impact on the credit card spends, repayment behaviour of customers, said Sandeep Ghosh, Group Country Manager, India and South Asia, Visa.
Instead, credit card spends have maintained the growth momentum and have increased by over 20 per cent since the regulatory action in November 2023, he said.
“Credit card spending has not decreased. It was an (regulatory) action on the balance sheet and institutional intervention. It has not necessarily impacted how individuals are spending on their card or their repayment history. Despite the increase in risk weights for unsecured lending in November 2023, credit card spending has grown upwards of 20 per cent,” Ghosh said at the launch of HSBC Live+ Credit Card, launched in partnership with Visa.
RBI had increased the risk weightage on unsecured lending, including personal loans and credit card loans, from 100 per cent to 125 per cent.
First Published: Jul 12 2024 | 7:12 PM IST
