New Delhi, April 2 -- A credit card is a versatile tool for convenience, rewards and short-term liquidity. But a six-figure limit is not a free pass for all purchases. In the eyes of the Reserve Bank of India (RBI) and commercial banks, credit cards are meant for consumption-not for financing or capital creation.

Understanding what you can and cannot swipe for has become more important as regulations tighten. Here's a guide to the allowed and prohibited baskets of credit card spending.

The origin of the credit card lies in mobility, say experts.

"The origin of credit cards actually came from the liquidity people needed while traveling," explains Parijat Garg, a digital lending consultant and former SVP at CRIF Highmark. "People wanted ...