FAQS about currency in India

The currency exchange is one of the issues that drive travelers head over heels in every new destination. If this is your case, here are a few tips for those who have to exchange currency in India.

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Indian currency

The Indian rupee ( रुपया ) is the official currency of India. Indian kingdoms minted currency in Antiquity (6th century BC) and the rupee has almost 500 years of history. The first rupees were minted by Sher Shah Suni for his empire with capital in Delhi. There are many countries such as Sri Lanka, Nepal or Indonesia that also use the name rupee for their coins.

There are bills of 2000, 500, 200, 200, 100, 50, 20 and 10 and coins of 10, 5, 2 and 1 rupee. One rupee is divided into 100 paisa, but this unit ceased to be used some years ago. You can still see 50 paisa coins in some localities. At the closing of this article 1€ was equal to about 80 rupees and 1$ was about 70 rupees. Check the current exchange rate for Indian rupees.

The Indian rupee is not quoted on international markets and cannot be exchanged outside India. Some countries with a large Indian community do exchange rupees, but this is a rare occurrence – exchange them before leaving the country!

Taking money to India

If you are planning a trip to India, you should have several financial resources to pay for your stay. India is a safe country for tourists. Robbery is not common, so taking cash is a suitable option. However, it is always adviceable to keep your money safe at all times.

The Indian economy increasingly works with debit cards, and you can pay by card even in local markets. The fight against fraud and the underground economy, as well as technological improvements, have led to the widespread use of digital means of payment via mobile phones in large cities.

On the other hand, receiving money from abroad in India can be somewhat more difficult than in other countries. Keep this in mind so as not to rely on remittances.

Best exchange rates for your cash

Contrary to what most people believe, the most beneficial exchange rate is not given in the banks of your country of origin, nor, in general, in the banks of India.

The euro, the pound and the dollar can be exchanged without problems in India, if you live in Spain you don’t need to get dollars.

The money changers in India accept almost all currencies. I have tried exchanging Argentine pesos, Paraguayan guaranís and Costa Rican colones. However, less widespread currencies give a less advantageous exchange rate than pound, euro or dollar.

Get euros, dollars, yen or pounds sterling to get the best exchange rate in India.

Where to exchange money in India

The exchange houses at the airports pay a high price for the privileged location and therefore charge it in their commission or exchange rate, even if they say they do not charge commissions. When you arrive in India it is preferable that you pay for the cab by card or withdraw from the ATM, and wait to exchange money in the city.

The place of the operation is important to get a good exchange rate:

• We have already said that the money changers at Delhi airport cover up the commissions in an awful exchange rate.
• Avoid hotels that tend to have low exchange rates and also often take a long time to do the paperwork.
• There are many local money changers near tourist places that offer very interesting rates, so you can change little by little.

Useful addresses for currency exchange

If you have to change money in Delhi I recommend the money changers of Khan Market. The exchange offices of this market are truly interested in capturing foreign currency to sell it to Indians who will travel to Europe and America.

Sometimes they even offer the same exchange rate of the day that appears on apps like xe.com. You will recognize them by the MONEY CHANGER sign near exit 4 of the Khan Market metro stop. You can go there before or after visiting India Gate or Lodi Gardens which are literally a stone’s throw away.

In the main cities of Rajasthan you will find many exchange places on the street. In Rajasthan you can always try to bargain your exchange rate. You will usually get one rupee more per euro or per dollar than what is shown on the exchange rate table. No one will be offended if you try. In Jodhpur, Jaipur and Udaipur the exchange rate is excellent even inside monuments like Amber Fort or Mehrangarh Fort.

Exchange in South India is less frequent, but there are also good exchange rates in tourist locations such as Mahabalipuram, Cochin, Kovalam or Pondicherry.

SOME RECOMMENDED EXCHANGE LOCATIONS
DELHI | Khan Market. Ahuja Telecom
JAIPUR | Amber Fort. Money changer at the exit of the fort
PUSHKAR | Main Market Rd. Mantri Forex
JODHPUR | Money changer beside the ticket office in the fort
BIKANER | Gallops Restaurant
AMRITSAR | New Clock Tower Market. Sachdeva Trading
RISHIKESH | Laxman Jhula. Balaji Travel

Tips when changing

• Exchange in small amounts. When you leave India, you are only allowed to exchange rupee to foreign currency up to a maximum of 10,000 rupees without proof of exchange. Places that do not ask for ID are informal money changers. They do not give a receipt and therefore those rupees may not be exchanged into one’s own currency before leaving above the 10,000 rupee limit. In case of withdrawal at an ATM the cashier’s receipt is a valid document.
• Ask for notes of different values. The 500 rupees notes are difficult to use in small purchases because many street vendors do not have change. Try to get a portion of the rupees in 100 or 50 bills.
• Be patient. Changing currency in India is an activity in itself. It can take you a long time for various reasons from the money changer not being in the office, and you were served by someone passing by to the money changer not having local currency to give you. Be patient and enjoy the surreal exchange experience.

ATMs in India

A few years ago, ATMs in India were very rare. In the big cities, there were ATMs, but they were often out of order or had no cash. However, the bankarization of the Indian economy recently has spread the use of debit cards and ATMs in India.

Indian debit cards are from companies such as Visa and MasterCard, but there are also some local cards. Therefore, not all ATMs accept international cards, and sometimes you will have to try two or three ATMs to get cash. Most ATMs do not accept American Express cards.

Tips for ATM withdrawals

• It is normal for the ATM to ask you to insert, withdraw and reinsert your card.
• Use your debit card whenever possible. The ATM always asks on the screen which account you want to use: credit, savings or current account. If you choose the credit option, you will usually incur higher fees.
• As a general rule, in India you can only get 10000 rupees per withdrawal.
• Some Indian banks charge a small fee of 200 rupees per withdrawal. The commission for foreign cards is displayed on the screen, and you can cancel if you do not want to pay for the transaction.
• Some specialized traveler cards like Revolut or N26 refund some fees.

Card payment in India

The spread of debit card payment has also changed the need for foreign currency. Contactless card payment is not yet as widespread. However, most tourism-related businesses now use card payment technology to facilitate transactions.

Technology and the formalization of the economy has also brought about an expansion of card payments. There is no need to worry about the security of payments. However, as a precaution, never leave your card with someone who takes it with them to pay elsewhere.

Use mainly debit cards. Check with your bank for the most favorable conditions for payment and withdrawal abroad.

In the most popular destinations there have been cases of card copying in souvenir stores or restaurants and the pattern of carelessness for the unsuspecting traveler is repeated. It’s something you shouldn’t do in your city either!

Best card for your trip to INdia

The development of financial technologies (FinTech) or mobile banking has brought two very interesting new proposals. These are banks without physical offices. Currently the one that is having the greatest expansion in Europe is the N26 bank and Revolut is also arriving with force.

Personally, I use the Revolut card. It is a bank account that is controlled from the cell phone. It allows worldwide payments using the interbank exchange rate, i.e. the best possible exchange rate. The Revolut debit card works with a mobile recharge system, so if you get robbed, you only lose what you have loaded. This card has no commissions for withdrawals (200 € per month) and payments abroad.

Pay by phone in India

Young urban Indians use various mobile apps to pay for all kinds of services. International applications such as Samsung Pay and Google Pay are popular. Apple Pay was not working in India.

The most widespread payment app in India is PayTM. You can only get it if you are a resident in India and have a local bank account.

However, most services you can pay with these apps also accept Visa and MasterCard debit cards. For example, I have my Revolut card set up for automatic payment for Uber and Ola Cabs.

Frequently Asked Questions

Considering that India is a safe country for international travelers, I advise you to carry enough cash to be able to exchange it throughout the trip. However, take advantage of new technologies to save on fees and get the best exchange rate with specialized traveler’s cards like Revolut or banks like N26.