Debit card payments increased 38 per cent in the first half of the current fiscal to Rs 11,780 crore, signalling uptick in consumer sentiment, the RBI said.
During the first six months of the last fiscal, the debit card payment stood at Rs 8,531 crore, according to RBI's latest monthly bulletin.
"The rise in debit card payment is due to spurt in consumer activities," said an economist with a leading bank on condition of anonymity.
On the other hand, credit card transactions in the country have slumped by 12 per cent in the first six months of this fiscal to Rs 29,330 crore as shoppers have decided against using their cards amid the ongoing economic slowdown.
During April-September period this year, credit card transactions stood at Rs 29,330 crore against Rs 33,470 crore in the first six months of last fiscal.
In September, credit card payment slipped to Rs 4,902 crore form Rs 5,635 crore during the same month in FY'09.
The credit card business has been on a slump since November last year.
The fall in credit card payment continues despite increase in retail credit disbursal, experts said this may be because some banks have reduced credit limits of customers thus hampering business.
"Payments made through credit card are down because the maximum amount limit given by banks could have been reduced," another economist with a bank said requesting anonymity.