New Delhi, Feb. 23 -- India's love for credit cards has been growing at a rapid pace.

Over the past five years, new credit card issuance has grown at nearly 20% compounded annually. The number of active credit cards has more than doubled from 55 million in FY20 to over 111 million in FY25, while outstanding balances have ballooned from about Rs.30,500 crore in FY15 to nearly Rs.2.9 lakh crore by FY25, according to industry estimates and RBI data.

The rapid expansion in cards and outstanding dues raises an uncomfortable question: are more Indians slipping into a credit card debt trap?

Outstanding balances per card have also climbed steeply-from Rs.1,600 in FY15 to nearly Rs.25,700 in FY25-signalling significantly higher credit utilizati...