Indians still prefer to spend Cash rather than using Credit Cards. Sure it always makes sense not to use Credit Cards in India because of the rampant irregularities by Credit Card companies themselves.
Data suggests that Indians withdrew Rs 65,000 crore from ATMs for Shopping, Dinning, etc against Rs 45,000 crore being swiped using Credit Cards. Debit Card Swipe was also very low at Rs 12,000 crore.
To lure more customers to use Credit Cards in India, many retailers and corporates are issuing co-branded credit cards – for instance just last week Gitanjali Gems introduced a co-branded credit card with ICICI Bank. These co-branded credit cards offer Reward / Loyalty Points and also some discount to consumers while they shop.