Today, credit cards are a common part of urban life in India-from online shopping to paying utility bills, they offer convenience, rewards, and short-term credit. But have you ever wondered: when did credit cards start in India? Who introduced them, and how has their journey evolved over the decades?
In this article, we’ll explore the origins of credit cards in India, how they became popular, and what led to the widespread adoption of this powerful financial tool.
The Global Origins of Credit Cards
Before we get into India’s story, it helps to understand where credit cards began. The first true credit card as we know it was introduced in the United States by Diners Club in 1950. It started as a way for businessmen to pay at multiple restaurants using one card.
Later, companies like American Express, Visa, and Mastercard developed the model further, allowing users to shop across thousands of merchants with a single plastic card and pay the bill later.
When Did Credit Cards Start in India?
India saw its first credit card in the early 1980s, introduced by Andhra Bank in collaboration with Visa. This marked the beginning of the credit card era in the country. However, adoption was slow due to limited infrastructure, low awareness, and the fact that most people were used to cash-based transactions.
Other major banks like State Bank of India (SBI) and Citibank India followed in the mid-to-late 1980s, offering credit cards mostly to high-income individuals in metros like Mumbai, Delhi, and Bangalore.
The Real Growth: 1990s and 2000s
The 1991 economic liberalization in India opened the doors for private banks and foreign investment. This was a turning point for the credit card industry. Foreign banks like HSBC, Standard Chartered, and Citibank began offering innovative credit card products with exclusive benefits.
In the early 2000s, private Indian banks such as HDFC Bank, ICICI Bank, and Axis Bank started aggressively promoting credit cards to salaried employees and entrepreneurs. Features like reward points, EMI options, fuel surcharge waivers, and travel perks attracted the growing middle class.
With the rise of online shopping, mobile apps, and digital banking, credit cards became more mainstream.
Technology Shift: From Swipe to Tap
Initially, credit cards in India were magnetic stripe cards, which required swiping and signatures. Over time, they evolved to chip-based EMV cards with higher security and contactless technology (tap-to-pay), making transactions faster and safer.
Modern-day credit cards now support NFC (Near Field Communication), OTP-based authentication, and integration with digital wallets like Google Pay, PhonePe, and Apple Pay.
Credit Cards Today in India
India now has over 100 million active credit cards, according to RBI data, with HDFC Bank being the largest issuer. These cards come with various categories such as:
- Rewards cards
- Cashback cards
- Travel cards
- Business cards
- Co-branded cards (e.g., Amazon Pay ICICI, Flipkart Axis)
The growth of buy-now-pay-later (BNPL) services and fintech companies has also added new competition in the credit space.
Who Can Get a Credit Card Today?
Thanks to simplified KYC norms, online applications, and digital banking, almost anyone with a steady income and a good credit score can now get a credit card. Even students and first-jobbers can access starter cards designed specifically for beginners.
Banks look at:
- Age (typically 18+)
- Employment or income status
- Credit score and history
Responsible usage can also help users build their credit score, which is essential for getting loans in the future.
Final Thoughts
So, credit cards in India started in the 1980s, but their real boom came post-1991 with the rise of private banks and digitization. From a luxury for the elite to a daily-use tool for the average Indian, credit cards have truly transformed how we spend, save, and manage money.
As India continues to move toward a cashless economy, credit cards will remain a critical part of that journey. Whether you’re using one for rewards, EMIs, or simply convenience-it’s clear that these little plastic cards have come a long way.