Credit Card in India: From 'Central Card' in 1980 to 11 Crore Users — 45 Years of India's Credit Revolution

Credit Card Journey in India: A 45-Year Transformation Story

From a time when digital payments were unheard of to today’s age of instant UPI-linked transactions, India’s credit card journey is nothing short of remarkable. What began as an experiment by the Central Bank of India in 1980 has now evolved into a massive digital financial ecosystem with over 11 crore active credit cards in circulation as of 2025.

Back in 1980, the Central Bank of India introduced the country’s first-ever credit card, named the “Central Card.” It was launched under the Visa network, marking the beginning of India’s tryst with modern financial tools. At that time, credit cards were a luxury available only to a select few — primarily corporate employees or high-income individuals. The concept of borrowing money through a plastic card was revolutionary and exclusive.

From Central Card to a Digital India Phenomenon

In the early 1980s, India’s economy was still conservative, and cash was king. Few could have imagined that one small card would eventually become a symbol of financial empowerment for millions. Over the decades, however, India’s economic liberalization, growing middle class, and rise of digital infrastructure completely transformed this space.

By the 1990s, as foreign banks like Citibank, Standard Chartered, and HSBC entered the Indian market, they introduced global credit concepts — including rewards programs, travel benefits, and zero-liability protection for fraud. These features made credit cards aspirational and desirable among urban consumers.

The 2000s: The Era of Digital and E-Commerce Boom

The 2000s marked a new chapter with the internet and e-commerce revolution. Platforms like IRCTC, Flipkart, Amazon, and MakeMyTrip made credit cards essential for online payments and travel bookings. Cashback offers, EMI options, and reward point programs made them part of everyday financial life.

Then came the RuPay card, launched in 2012, under India’s own payment network. This initiative democratized access, making credit cards available beyond metro cities. With RuPay, smaller towns and semi-urban areas began adopting digital payments, bridging the financial inclusion gap.

The Modern Credit Card Landscape (2025)

Fast forward to 2025 — India now has over 11.12 crore active credit cards, according to the Reserve Bank of India (RBI). What was once a luxury is now an essential tool for millions. Credit cards today come in varied formats — including travel cards, lifestyle cards, fuel cards, secured cards, and UPI-linked digital cards — catering to every possible consumer need.

Not just major private and public sector banks, but also small finance banks and fintech companies have entered the market. With simplified application processes and instant digital KYC, even individuals in Tier-2 and Tier-3 cities are now availing credit facilities with ease.

Moreover, the integration of credit cards with UPI has further expanded accessibility. Now, even users without traditional bank accounts can enjoy credit-based transactions through digital wallets and co-branded partnerships.

Features That Redefined Convenience

Today’s credit cards aren’t just about spending — they’re about smart financial management. They offer:

• Reward Points and Cashback: Encouraging responsible spending.

• Zero Liability on Fraud: Protecting customers from unauthorized transactions.

• Insurance and Travel Benefits: Covering medical emergencies, flight delays, and lost baggage.

• Easy EMI Options: Making big-ticket purchases affordable.

These features have transformed credit cards from mere payment tools into lifestyle enablers, aligning with India’s rapidly digitalizing economy.

A Symbol of India’s Financial Growth

From the humble “Central Card” in 1980 to the sophisticated digital credit ecosystem of today, this 45-year journey mirrors India’s economic progress and digital transformation. What started as a niche product for the elite has evolved into a mainstream financial necessity empowering millions of Indians to shop, travel, invest, and manage their finances smartly.

As India continues its march toward a cashless economy, the credit card remains a powerful symbol of financial evolution — representing trust, technology, and transformation.

In essence, the story of credit cards in India is not just about payments — it’s about how a single innovation helped shape the nation’s digital and financial identity.