New Delhi, March 10 -- Indian banks have rapidly expanded their credit card operations. Due to this nearly 11 crore outstanding cards are in the system as of early 2025 according to Reserve Bank of India data. This growth is driven by a highly profitable business model that generates strong revenue from interest rate charges, fees, and merchant transactions.

Further, banks willingly issue credit cards because they offer a steady stream of income for them, helps in increasing the number of customers and encourages consumer spending. You need to always focus on keeping your credit utilisation ratio in check. Here's a closer look at how this business model works and why banks are betting big on credit cards and are eager to offer you these ...