Best Currency to Take to India: What Every Traveler Should Know

Thinking of bringing US dollars, euros, or maybe just some leftover British pounds for your India trip? You’re not alone—so many travelers wonder what’s really the smartest way to sort out their travel money. Here’s the thing: you can’t pay for your train ticket or street food in Mumbai in anything but Indian Rupees. Foreign notes look impressive, but most shops and restaurants couldn’t care less—you’ll need rupees for pretty much everything.

The Indian Rupee (INR) is a closed currency. That means you won’t find it easy to get outside India, and you shouldn’t bother buying it from your local bank or currency exchange; if they even offer it, the rates will sting. Most visitors bring US dollars, euros, or British pounds and swap them once they land, either at airport counters, banks, or official currency exchange outlets in bigger cities. Don’t worry—you’ll spot exchanges at airports, and the rates aren’t as bad as people make out, especially if you drop into a city branch and avoid the pushy touts right outside arrivals.

• Why the Indian Rupee Matters
• Best Foreign Currencies to Carry
• Using ATMs and Cards in India
• Real-World Exchange Tips
• How Much Cash Should You Bring?
• Money Safety and Scams to Avoid

Why the Indian Rupee Matters

If you try to buy a samosa in Delhi or take a rickshaw in Jaipur, waving around US dollars won’t get you far. In India, everything runs on the Indian Rupee (INR), from hotel payments to the smallest bottle of water. This isn’t just a local rule—it’s the law. Indian businesses and people legally can’t accept foreign currencies for day-to-day stuff, even if they wanted to.

Unlike euros or dollars, the rupee is what’s called a “closed currency.” That means you simply can’t buy rupees in most countries before your trip. Some dodgy exchange desks outside India might offer them with sky-high fees, but it’s just not worth it. Wait until you’re in India; you’ll usually get a much better rate and know your money is legit.

When you land, you’ll find exchange counters at all the major airports. After you get through customs, you can swap your cash for rupees right away. Just double-check the rates—they’re usually decent for smaller amounts if you’re in a rush, but if you’re changing larger sums, head into town for better rates.

Here are some basics about Indian Rupees that’ll clear up any confusion:

Keep in mind, some rural areas and budget places might only accept smaller notes. Don’t walk around with just 2000 rupee notes, or expect exact change in tiny shops—always break large bills at bigger stores or hotels.

So, no matter what travel blog promises, there’s no real shortcut: you’ll need rupees, and you should only swap money at legal spots in India once you arrive. It's the only way to be sure you’re not losing out—either in value or security.

Best Foreign Currencies to Carry

If you’re trying to decide which cash is best to pack, go with the most accepted and easy-to-exchange currencies. The Indian market is picky: not every note from every country will get you a good deal, or even get accepted. Here’s what works best, and the facts you actually need.

• US Dollar (USD): By far the most popular. Dollars are accepted by nearly all exchange counters, banks, and hotels. Many official rates you see online — including visa fees and some airfares — are often shown in USD first. Plus, the USD is often offered the best exchange rate compared to most currencies.
• Euro (EUR): Reliable, with similar perks to USD. Big cities and all reputable exchanges will swap it. Smaller towns also accept it, although with slightly less favorable rates sometimes.
• British Pound (GBP): If you’re from the UK or have pounds handy, they’re nearly as good as euros or dollars but might fetch a little less in remote areas.
• Australian Dollar (AUD)/Canadian Dollar (CAD): You can exchange them in metros and airports, but the rates aren’t as attractive, and rural branches might refuse them entirely.

Avoid bringing currencies like Japanese yen or Swiss francs. Even in big cities, exchanges may reject these, or the offered rate will feel insulting. Damaged, torn, or old-style bills—no matter the currency—are likely to be refused. Indian banks are extra picky about this, so bring fresh, recent notes if possible.

Here’s a quick stats table to compare average exchange acceptance and rate value for the main currencies (based on typical Indian airport and city exchange counters as of June 2024):

*"Exchange Rate Value" means how close your rate will be to the actual global market rate — the tighter the spread, the better your deal.

So, if you want quick exchanges, good rates, and less stress, stick with USD, euros, or pounds. Bring new bills, ideally in $50 or €50 denominations and above for better rates, but don’t show up with massive stacks of cash. Keep the receipts from your exchanges, too—you’ll need them if you want to swap leftover INR back before you leave.

Using ATMs and Cards in India

India is covered with ATMs, especially in all major cities and towns. Even mid-sized airports and highway pit stops usually have at least one. The most accepted cards are Visa and Mastercard, but some places also recognize Maestro and RuPay. American Express cards don’t always work, so don’t rely on them.

One thing to remember: international cards will almost always get charged a fee by Indian ATMs. This tends to be about 200 INR (roughly $2.50 at today’s rates) per withdrawal, but your home bank may slap on an extra foreign transaction fee. There’s also usually a withdrawal limit per transaction, often between 10,000 and 20,000 INR (about $120–$240), so if you’re trying to take out a larger amount, expect to do multiple transactions—and rack up more fees.

ATMs in India can occasionally run out of cash, break down, or just refuse your card for no clear reason. That’s why it’s smart to try different banks if the first one doesn’t work. Don’t wait until your wallet’s empty to start looking—get your rupees topped up when you still have a cushion.

Here’s something a lot of travelers mess up: avoid letting the ATM or merchant do the conversion when you pay with a foreign card. Always choose to pay or withdraw in local currency (INR), not your home currency. That way, you dodge dynamic currency conversion, which usually means a bad rate for you.

• Tell your bank you’re going to India. Otherwise, they might flag the charges as suspicious and freeze your card. A quick call or an app alert should do the trick.
• Look for ATMs attached to banks rather than standalone ones. They’re safer and less likely to eat your card.
• If you use a credit card for bigger payments (hotels, booking trains), make sure it doesn’t have a big foreign transaction fee. Some debit cards, like those from Wise or Revolut, are well-liked by backpackers for their low costs—it’s worth checking if your bank has something similar.
• Don't rely on cards in rural or smaller towns—carry currency India in cash for street markets, small shops, and transport.

As Lonely Planet puts it:

“Cash is king across much of India, but ATMs are easy enough to find in cities. Always carry some backup rupees just in case.”

So, plan your withdrawals, watch those ATM fees, and don’t get caught short. You’ll spend less time stressing about money and more time eating samosas in the sun.

Real-World Exchange Tips

If you’re serious about saving cash and getting the best currency India experience, you have to play it smart at the exchange counter. Not all places are created equal when it comes to swapping your money for rupees. Airport booths, for example, are convenient, but usually offer worse rates than city branches. On the other hand, those tiny exchange shops in popular tourist spots sometimes have better deals but make sure they look legit and display actual licenses.

Always keep an eye on the displayed rate. The official rate is set by the Reserve Bank of India, but exchange shops add their own cut. Here’s a peek at typical exchange rates compared to the official mid-market rate:

Here’s what works best for most travelers:

• Change only a little cash at the airport—enough for taxi fare and that first meal.
• Head to an authorized exchange in the city for better rates. Brands like Thomas Cook (India), Centrum, or bookmyforex.com have walk-in locations—they’re trustworthy and easier to deal with if there’s ever a mix-up.
• Count your rupees before you walk away. Mistakes (accidental or not) can happen, especially when it’s crowded.
• Keep receipts! You’ll need them if you want to change back to dollars/euros when leaving India (there’s a 25,000 INR limit you can legally export).
• Never change money with random street guys, even if they promise “wholesale” deals. Fake notes are a hassle, and scams do happen.

Want a pro tip? Exchange in batches. Rates move every day, and sometimes just changing half your money now and the rest a few days later gets you a better average rate. Plus, it gives you flexibility in case you spot a shop with a killer deal. Some popular tourist cities (like Goa or Jaipur) have dozens of competing exchanges right around the main markets, so don’t settle for the first sign you see.

How Much Cash Should You Bring?

This is the question everyone Googles right after they book a flight. How much is too much for India? The quick answer: you don’t need a stuffed wallet loaded with rupees. Why? ATMs are everywhere in big cities and most tourist spots, so you can pull out more as you go. Still, it’s smart to land with enough cash to cover your first few days plus any transport or emergencies.

The Reserve Bank of India says travelers can legally bring up to 25,000 Indian Rupees per person (about $300 USD today) if you’ve somehow picked them up abroad, but honestly, most folks just bring foreign currency like dollars or euros to change once they arrive. Here's a quick guide to help you estimate what you might actually spend per day:

Count on paying for local rickshaw rides, street eats, small markets, or tipping in **Indian Rupees**—those places don’t do cards. Hotels, some trains, and bigger restaurants often take Visa or MasterCard, but you can’t rely on that in every city, especially in smaller towns.

• If you’re in India less than two weeks, bringing $200–$400 (in crisp, untorn bills) is plenty to swap for rupees at the airport or local exchange.
• Break up your cash into smaller notes once you exchange. It’s way easier for daily use, and a lot of shops won’t have change for huge bills.
• Don’t carry all your cash around—split it up and stash the extra in your hotel safe or a locked backpack pouch.
• If you’re heading to rural areas or less touristy spots, ATMs can get thin on the ground, so bring a bit more rupees just in case.

If you’re coming from the US, UK, or Europe, stick with brand new bills—old, torn, or written-on notes get flat-out rejected at Indian exchange counters. I learned this the annoying way when exchanging dollars with a small tear meant getting a worse rate, or flat out "no."

Bottom line? Prep for your first days—airport taxi, hotel deposits, and food—then use ATMs for the rest. You won’t have to panic about running out, and you’ll save money on exchange fees and bad rates back home.

Money Safety and Scams to Avoid

Cash gets you far in India, but you don't want to be the unlucky tourist telling horror stories back home. Petty theft, dodgy money changers, and clever street scams are real here. Everyone talks about it for a reason—it actually happens. Don’t let this freak you out, but do keep your guard up.

First thing: always use official places to exchange your foreign currency for Indian Rupees. Banks, airport counters, and government-authorized money changers are your safest bets. If you swap notes with random guys hanging around outside exchange counters or in busy markets, there’s a good chance you could be handed fake notes. Indian authorities even busted hundreds of fake currency rackets last year. You don’t want these slipping into your wallet—locals won’t touch them, and it's a pain to prove you didn’t know.

Here's a quick look at the biggest risks and what to do about them:

• Fake Notes: Get to know what rupees look and feel like. Look for the security strip, Mahatma Gandhi watermark, and raised printing. Some recent studies estimate up to 0.05% of notes in circulation are counterfeit—tiny, but not zero. If a bill feels weird or bleach-bright, refuse it.
• Short-Change Tricks: Some shopkeepers or taxi drivers give less change back, hoping you’re too jetlagged to notice. Count your change, even if there’s a line behind you.
• ATM Skimming: It happens in major cities. Stick to ATMs attached to major bank branches. Cover the keypad with your hand, and if an ATM looks sketchy or like it was tampered with, walk away.
• Wallet and Phone Snatching: Crowded places like bazaars and train stations attract pickpockets. Use a money belt or keep small bills in a front zip pocket. Leave most of your cash in your room’s safe, if you have one.

Don't forget about online scams, either. Only use your cards at reputable hotels, shops, or travel booking sites. Don’t let your credit card disappear out of sight, even for a second—waitstaff will usually bring the POS machine to your table for this reason.

I always run two wallets—one with small bills for the day, and a backup stash with my main cash locked up with my passport. If you get flustered, just tell yourself, “fake notes are rare, scammers aren’t everywhere, but being smart pays off.” Stick to these basics, shrug off the horror stories, and your budget trip to India will stay hassle-free.