Why debit's preferred over credit

Being in debt is not welcome as far as Indians go. Add to that a weakened economic sentiment and you have Indians scurrying away from any sorta debt. Its also pretty cultural for Indians to want to live within their means. All of this has resulted in Debit card usage now supplanting use of Credit cards in India.

ET reports that payment by debit cards in India is rising at a faster clip compared to spending through credit cards. While data from companies involved in facilitating card payments show that there has been a rise in number of payments using credit and debit cards, RBI data available for the first seven months of the current financial year also validate claims of increased spending using plastic cards. However, it's the use of debit cards that's growing at a faster rate than credit card payments.


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