Debit card payments increased by 40 percent to Rs. 14,598 crore during the April-October period as against the corresponding period last year, reflecting a surge in economic activities.
During the same period in 2008-09, the payments made through debit cards stood at Rs. 10,489 crore.
Analysts say that the increase in debit card payments is in line with expectations as the financial condition of the country has improved in the last few months.
According to latest RBI bulletin, the payments made through debit cards stood at Rs 2,572 crore in October, highest in the current fiscal.
The payments were Rs. 1,960 crore in the comparable period last year.
On the other hand, credit card payments declined by over 12 percent in the first seven months of the current fiscal to Rs. 34,993 crore as shoppers decided not to use their cards amidst ongoing economic slowdown. Credit card defaults rose to 17 percent in the last fiscal.
Lenders also became more careful in terms of their credit cards. Recently, ICICI announced that it would block all its cards in case a customer defaulted on one.