In May of this year, official data from the Reserve Bank of India (RBI) revealed that credit card spending reached an unprecedented amount of 1.4 lakh crore. However, a report by The Indian Express indicates that credit card defaults are also on the rise. By the end of March 2023, the total outstanding credit card debt stood at ₹1.94 lakh crore, compared to ₹1.48 lakh crore in March 2022. In April this year, for the first time, the outstanding credit card debt surpassed ₹2 lakh crore. Sanjeev Moghe, President and Head (Cards & Payments) at Axis Bank, suggests that this surge in credit card debt could be a result of increased consumer spending. Alternatively, the report suggests that inflation might be contributing to the rise in outstanding credit card balances, as people end up paying more for their purchases.