Credit Card Spend Drops 5.9%: Is Your Cashback at Risk?

Credit card spending in India fell 5.9% in September 2026 — the first annual drop since 2021. Festive sales shifted timings, but banks may quietly cut rewards. Here's what to watch on your card.

Here's what happened: Credit card spending in India fell roughly 5.9% year-on-year in September 2026 — the first annual contraction since February 2021, ending a long unbroken growth streak.. A key driver was a shift in festive season timing: major shopping events that fell in September last year moved into October this year, distorting the year-on-year comparison.. Despite the monthly dip, cumulative card spending for 2026 remains elevated, but banks are closely tracking whether this is a one-month blip or the start of a broader consumer slowdown..

What you should do: Screenshot or note your card's current reward-earn rate and cashback percentages today — issuers can revise T&Cs with 30 days' notice and most users miss the email.. Check your card statement for any 'revised benefits' or 'programme update' communication sent in the last 60 days — many banks bury these in the app inbox, not SMS.. Compare your card's fee-to-rewards ratio on an aggregator site now — if your annual fee has crept up while benefits thin out, this is a good window to switch or negotiate a fee waiver..

If your card issuer downgrades rewards, call retention within 30 days of the notice — banks routinely offer a fee waiver or temporary cashback boost to prevent high-spend customers from churning.

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