Complaints from credit card customers are increasing as the cards in circulation increase

As banks become aggressive in marketing and marketing different types of credit cards, customer complaints related to this product dominated the complaints filed with the Banking and Financial Services Ombudsman in FY25.

The RBI Ombudsman received 50,811 consumer complaints related to credit cards, a growth of 20 percent over FY24, and accounting for about 17 percent of the total complaints of over 2,96,000. In FY 2023, credit card complaints made up only 13 percent of total complaints, as more complaints and queries related to mobile and electronic banking. In FY22, this was 12 percent, according to annual reports.

Moreover, 64 percent of credit card complaints in FY25 came from private banks, a segment that has been the most aggressive in selling the product.

Analysts note that more complaints about this product reflect the rise in the number of cards in circulation and increased usage by customers at banks and NBFCs. RBI data shows a 7.8 percent year-on-year growth in total outstanding credit cards across private banks between FY24 and FY25.

“There has been a significant push by banks, especially private banks, into credit card products in the last 1-2 fiscals. From the consumer side, there has been an increased demand for credit cards, not just as a credit product but also because of the reward points and other benefits they bring,” said Vivek Iyer, Partner and Financial Services Risk Leader, Grant Thornton Bharat. “A look at airport lounges can testify to the number of credit cards per person in urban India,” he added. Overall, he noted that the Ombudsman’s annual report reflects the need for the regulator to create greater awareness among customers in the semi-urban and rural areas.

The number of complaints under other categories, such as mobile/electronic banking and ATM/debit card related complaints, decreased by 13 percent and 28 percent respectively, indicating that usage is maturing and problems are subsiding.

Overall, complaints against banks constituted the largest chunk (2,41,601), accounting for 81.5 per cent of complaints received by RBI Ombudsman offices, followed by NBFCs (43,864) which accounted for 14.8 per cent in FY25.

Among banks, the proportion of complaints received against private sector banks was the highest, rising from 34.4 percent in FY24 to 37.5 percent in FY25. However, the share of complaints received against the public sector bank, which was the highest at 38.3 percent in FY24, fell to 34.8 percent in FY25.

Published on December 8, 2025