The Indian credit card market entered February 2026 showing signs of structural consolidation and a shift toward high-value transactions. While overall spending moderated after a year-end surge, the industry reached a significant milestone with active cards in force climbing to **116.6 million**. **Spending Momentum and Market Shift** Monthly credit card spending stood at **Rs 1.99 lakh crore** in January 2026, marking an **8.1%** increase compared to the previous year. Although this represents a **2.7%** sequential decline from the December peak of nearly **Rs 2.05 lakh crore**, the drop is largely attributed to seasonal normalization following the festive cycle. A critical trend is the widening gap between card volume and spending value. The top five legacy banks now command **85.6%** of total transaction value, up from **81.2%** at the start of the fiscal year. This indicates that while mid-sized banks and fintech players continue to issue cards, consumers are increasingly using primary accounts from major lenders for high-ticket e-commerce, travel, and luxury purchases. **Dominant Players and Performance** HDFC Bank maintains its market leadership with a **22%** share of active cards and a **28.4%** share of total spending value. SBI Card follows closely, capturing **19%** of the card base and **24.7%** of spending value. Together, these two institutions control nearly half of the entire credit card market. Other major participants include ICICI Bank with a **16%** spending share and Axis Bank at **14%**. Notably, average spending per card has adjusted to approximately **Rs 17,700**, reflecting a move toward smaller, more frequent digital transactions. **Regulatory and Product Evolution** The landscape is being reshaped by new Reserve Bank of India (RBI) regulations effective early 2026. These updates mandate stricter two-factor authentication for all digital payments and require banks to provide fortnightly reporting to credit bureaus to improve data accuracy. The rise of UPI-linked credit cards remains a primary growth driver. RuPay-based credit transactions now account for roughly **38%** of total card transaction volume. This integration has moved credit usage beyond large purchases into everyday categories like groceries and local dining, effectively displacing traditional debit card usage at point-of-sale terminals. **Strategic Tightening** Lenders have adopted a more cautious approach to risk management. There is a visible tightening of underwriting standards and a widespread "devaluation" of reward programs. Many banks have introduced spending thresholds for lounge access and capped reward points on specific categories like utility bills and government payments. These measures aim to curb rising delinquencies and manage the high cost of premium card benefits in a maturing market. [Understanding Indian Credit Card Trends](https://www.youtube.com/watch?v=a_G-Q8VhXI4) This video provides a detailed breakdown of the latest RBI data and explains how spending patterns are shifting in the current economic climate. http://googleusercontent.com/youtube_content/0