The central government's move has received strong pushback on social media as it could make foreign travel much more expensive for people, hurt credit card issuers and the overall tourism industry.
It is important to note that previously, the use of credit cards for foreign expenditures during travel was not included under the LRS. The scheme had previously covered debit cards, forex cards, and bank transfers
This would enable the RBI to monitor the usage of credit cards for foreign travel more closely and to ensure that payments for such tours through a credit card do not escape tax collection at source