Forex Spending Takes a Dip

In an interesting turn of events, Indian spending on foreign exchange (Forex) witnessed a significant 14% decrease in October, dropping to $2.4 billion from $2.8 billion in the previous month. This decline in international spending comes at a time when domestic spending through electronic channels reached its peak during the festive season.

Domestic Digital Payments Soar

Contrasting the fall in Forex spending, domestic digital and card payments hit new highs in October 2024. Spending through domestic credit cards exceeded Rs 2 lakh crore, while UPI transactions totaled an impressive Rs 23.4 lakh crore. However, November saw a sharp decline in spending across all channels, with credit card transactions at shops falling by 7% in volume and 14% in value to Rs 68,233 crore.

UPI Transactions Experience a Downturn

Following the festive high, UPI transactions in November 2024 saw a decline compared to October. The total transaction volume fell by 6.6% to 1,548 crore transactions, and the overall transaction value decreased by 8.3% to Rs 21.55 lakh crore. This shift highlights the fluctuating nature of consumer spending patterns in India, influenced by both seasonal factors and broader economic trends.