In this guide to banking, money, and currency in India, you’ll get our best travel money tips, from finding the best exchange rates to breaking down the average prices of local goods and services. Read on for all the details on navigating the local currency and banking system in India.
Understanding the local currency and banking system is key to having a successful travel experience. In India, the official currency is the Indian rupee. Dating back to ancient India, today it’s one of the most actively traded currencies in the world and is issued and regulated by the Reserve Bank of India.
As this is primarily a cash-based economy, it’s important to understand money in India in order to pay, buy, shop, and haggle properly while traveling there. This guide to the Indian rupee covers all the essentials.
Travel Money in India: Everything You Need to Know
Indian Rupee Basics
- Currency Code: INR
- Symbol: ₹
- Forms: Paper currency, coin, and digital (cryptocurrency)
- Division: 1 rupee = 100 paises (smaller units)
- Countries of Use: India, Nepal, Bhutan
Denominations
Rupees are available in two physical forms: banknotes and coins.
- Banknotes denominations: ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2,000.
- Coins denominations: ₹1, ₹2, ₹5, and ₹10 (₹20 and ₹50 coins are rare but still legal tender)
Indian Rupee Exchange Rate
The current exchange rate is US$1.00 = ₹82.65, though it’s always subject to change.
The exchange rate between the Indian rupee and other currencies fluctuates constantly. Use an exchange rate calculator to check the current exchange rate, both before and during your visit to help you better track your spending.
How to Get Indian Rupees
India has limits on foreigners importing rupee banknotes into the country, so it’s easiest to get your rupees upon arrival. Most major airports will have currency exchanges, where you can swap your cash for rupees, or ATMs for withdrawals.
When getting rupees in India, it’s crucial to only do so at reputable establishments to avoid getting scammed. Currency exchanges and ATMs are the safest bet.
Currency Exchanges
To exchange currency, you can trust operators that either have a Fully Fledged Money Changers License or are authorized and approved by the Reserve Bank of India. If you’d like to shop around for the best exchange rates, you can find a list of approved money changers by city here. Expect to pay a small currency-conversion fee with each transaction.
Cash Advances at ATMs
You can find ATMs throughout the country, particularly in major cities, but it’s best to only take out money in busy, well-populated areas. Practice common sense and be aware of your surroundings when making ATM withdrawals to make sure someone isn’t watching you, and be sure to examine the machine for card readers that can capture your debit cards’ data.
It’s also smart to check with your bank regarding foreign transaction fees and international ATM fees before you leave.
Exchanging Currency at a Local Bank
If you prefer to withdraw cash or change money at a bank, these are some of India’s biggest and most trustworthy banks: State Bank of India, Bank of India, Axis Bank, Bank of Baroda, ICICI Bank, Punjab National Bank, HDFC Bank, IndusInd Bank, and Kotak Mahindra Bank.
However, you typically need to have an NRO (Non-Resident Ordinary) bank account open with the institution of your choice to exchange money.
Cost of Goods and Living in India
Given the current Indian rupee to US dollar exchange rate, India can be a very affordable destination for American travelers. Here are the average costs of some expenses you may have as a traveler:
- Average daily expenditure: $30 (budget) to $100+ (high-end)
- Bus ride: $3
- Uber: $7
- Overnight Trains: ~$15
- Accommodations: $10 – $45 per night for nicer hotels
- Meals: $10 for three meals
Importing and Exporting Rupees
There is a lot of confusion and outdated information regarding India’s policies around foreigners importing and exporting rupees. It’s easy to find information online saying that it’s illegal to import and export rupees as a foreigner.
However, this is not the case. You are allowed to enter India with up to ₹10,000, but you must declare it on your Indian Customs Declarations Form. Similarly, if you’re bringing in more than US$5,000, you need to declare it when you enter the country. And when you leave India as a foreigner, you’re allowed to export up to ₹25,000.
If you’re unsure or nervous, simply wait to get your foreign currency until you’re in India. Then at the end of your visit, when you’re done spending money, convert any leftover rupees back to your home currency.
Counterfeit Rupees
India has had issues with counterfeit money circulating widely in the economy, which is why it’s vital to be on your guard. Whenever you’re exchanging foreign currency for rupees or withdrawing money, it’s important to only do so at reputable currency exchanges. You should also always double-check the banknotes to see if they’re counterfeit.
To help distinguish counterfeit money from legitimate Indian rupees, the Reserve Bank of India has added security features to official Indian rupee notes. Here’s what you should look for to determine if a banknote is real:
- A fluorescent security thread running vertically across the note that changes color when tilted
- A watermark of the note’s denomination and an image of Mahatma Gandhi
- Micro-lettering that is clearly visible and readable under a magnifying glass
- Good, sharp print quality
- Intaglio printing (a raised effect you can feel when you run your fingers across the note)
If you’re unsure, compare your questionable Indian rupee notes with a real, genuine note to confirm. If you do get fake rupees, go to the police station and report it. If you got the fake note directly from a bank, you should let them know as well. You’re unlikely to get your money back if this happens to you, so be prepared to take the loss.
Using US Dollars in India
Foreign currencies are not widely accepted in India, and that includes the US dollar. Although you may find some shopkeepers and sellers in major tourist areas who are willing to accept it, it’s best to convert your travel money to rupees and use the local currency during your stay.
Using Credit Cards in India
Although India has long been a primarily cash-based economy, credit and debit card use is on the rise. Some of the most widely accepted credit cards across India are Visa, Mastercard, Discover, and American Express.
Credit cards will likely be accepted at most establishments, especially those catering to tourists. That includes hotels, attractions, stores, and big restaurants. But it’s still a good idea to carry cash for things like shopping at street markets or taking an auto-rickshaw taxi.
The use of contactless cards (tap-and-pay methods of payment) is also growing. But chip and PIN technology is still more widespread, so you should make sure you have a PIN attached to your card. Some people still carry traveler’s checks, but they’re much less popular than they once were.
Credit Card Fees
If you opt for a cash advance, you may be subject to foreign transaction fees or currency conversion fees. Cash withdrawals from out-of-network ATMs can also incur a service charge.
Before traveling to India, remember to inform your credit card company where and for how long you’ll be abroad. That way your transactions won’t be marked as fraudulent, which risks you losing access to your cards while traveling.
Cultural Sensitivities Around Money
With its vibrant culture and bustling markets, India presents a unique landscape for navigating money matters. Understanding the cultural sensitivities around money and adopting appropriate practices can enhance your experience. Here are a few key points to keep in mind.
Tipping Etiquette in India
Tipping is customary and expected in India, especially for drivers, porters, wait staff, and guides, as most earn low wages. In restaurants, tipping between 10% and 15% is fine. For tour guides and drivers, a few dollars (US$1 to $3) is sufficient, though you can add more for private services.
Bargaining and Haggling
For travelers coming from countries where prices are set and non-negotiable, getting to experience India’s famed bargaining and haggling culture can be a standout feature, especially for those looking to save money.
Bargaining and haggling are widely practiced in markets and bazaars, where merchants and buyers negotiate a fair price for goods. If you want to try your hand at haggling during your time in India, here are some tips:
- Do some research about the average asking price for the items you want to buy before you go shopping. This will help you avoid overpaying for the item and underpaying the merchant.
- Start with a low offer that gives you room to negotiate and allows the seller to make a counteroffer.
- If you want multiple items, you can try to bundle them together for a better price (example: “I’ll give ₹500 for these three items”).
- Keep a positive attitude, be respectful, and don’t be mean or rude.
- Don’t push the price too low, or you risk offending or annoying the seller.
- If the seller isn’t willing to negotiate, feel free to walk away. Most times the seller will call you back with a better offer. If not, you can likely find the same or similar items nearby at your desired price.
Haggling is a fun way to shop and interact with locals while in India, so don’t take it too seriously. Be respectful, do your research, and know your limits.
Preparing for Your India Trip
Obtaining a visa is an essential part of planning your trip. At Entriva, we can easily and efficiently help you with every aspect of getting an India visa. Start your visa application process.
For more information on other aspects of travel to India, including local laws, health and safety, local culture and customs, and the possibility of extending your stay, visit our India content hub.