In September 2026, Indians spent ₹1.26 lakh crore online via credit cards, but withdrew ₹2.19 lakh crore using debit cards at ATMs. Credit cards are now the default for online purchases, while debit cards primarily remain a cash-withdrawal tool. This split points to a persistent reliance on physical cash even as India's digital payments infrastructure rapidly expands.
How We Got Here
The RBI regularly publishes payment statistics, with this September 2026 report offering a detailed look at card usage specifically. India's payment landscape has seen significant shifts since the 2016 demonetisation, pushing diverse adoption of digital instruments.
The Numbers
- Credit cards saw 30.79 crore online transactions worth ₹1.26 lakh crore, compared to 29.82 crore PoS transactions worth ₹77,751 crore.
- Debit cards made 39.83 crore ATM cash withdrawals totaling ₹2.19 lakh crore, nearly four times the combined debit card purchases.
- India had 88.55 crore UPI QR codes and 1.04 crore PoS terminals as acceptance infrastructure by September-end 2026.
- The RBI counted 12.53 crore credit cards and 103.97 crore debit cards as "outstanding," representing card counts, not unique users.
What Happens Next
🇮🇳 Why This Matters for India
For fintech founders building credit-scoring models in Bengaluru or Mumbai, these distinct usage patterns highlight a complex user psychology that segments payment products beyond mere availability.
The Take
UPI's massive merchant penetration quietly eats into potential debit card purchase volumes. Debit cards won't pivot to purchases when UPI offers a superior, zero-MDR merchant experience for low-value transactions.
Source:
MediaNama ↗