Indian Money: What You Need to Know About Currency, Costs, and Cash in India

When you think of Indian money, the official currency used across India, denominated in rupees (₹) and divided into 100 paise. Also known as Indian rupee, it’s the backbone of every transaction—from buying a chai at a roadside stall to booking a taxi for a week-long trip across Rajasthan. Unlike countries where credit cards dominate, cash still rules in India. Even in big cities like Mumbai or Delhi, you’ll find that small vendors, temple donations, auto-rickshaws, and even some hotels prefer rupees in hand. You won’t get far without understanding how this currency works in real life.

One of the biggest surprises for travelers? The sheer volume of cash you’ll carry. A ₹2,000 note might buy you a decent meal, but a train ticket to Varanasi could cost five of them. That’s why you’ll often see people counting stacks of notes in the open, and why wallets in India are built to hold hundreds of rupees. The ₹500 and ₹2,000 notes are the most common high-value bills, while ₹10, ₹20, and ₹50 notes handle daily expenses. Coins? They’re rare outside of parking meters or small change. And forget about ATMs being everywhere—you’ll find them in malls and banks, but not always in rural areas. Always keep some cash tucked away, especially when heading to places like Rajasthan’s desert towns or Kerala’s backwaters.

Exchange rates change daily, but as of now, $1 is roughly ₹83. That means a ₹500 meal costs under $6. For travelers, this makes India one of the most affordable destinations on Earth. But don’t let that fool you—prices vary wildly. A luxury hotel in Goa might cost ₹15,000 a night, while a clean guesthouse in Jaipur runs ₹800. Street food? You can eat well for ₹100 a day. The key is knowing where to spend and where to save. And remember: most places don’t accept foreign cards, so you’ll need to withdraw rupees from ATMs using your international debit card. Watch out for fees—some banks charge ₹200 per withdrawal. Pick one with low or no foreign transaction fees.

Scams around money? They exist. Fake notes are rare but possible, especially with ₹2,000 bills. Always check the watermark and security thread. Never accept torn or dirty notes from strangers—they’re harder to exchange later. And if someone offers to exchange dollars on the street, walk away. Official exchange counters at airports and banks are your safest bet. Also, avoid haggling over small amounts. A ₹20 difference on a ₹100 item isn’t worth the hassle. Locals appreciate when you pay the asked price, especially if they’re small business owners.

What about digital payments? UPI apps like PhonePe and Google Pay are everywhere. But as a tourist, you’ll need an Indian phone number and bank account to use them. So unless you’re staying long-term, cash is your friend. And if you’re planning to visit temples or festivals like Kumbh Mela, you’ll need cash for offerings, prasad, and donations. Many temples don’t even have card machines.

Whether you’re exploring the ancient temples of Tamil Nadu, riding a tuk-tuk in Delhi, or bargaining for spices in Mumbai’s markets, Indian money is your key to unlocking the real experience. The posts below give you real, practical tips on how to handle cash, where to get the best rates, how much to budget for different regions, and what to avoid when spending your rupees. You’ll find guides on budget travel, taxi costs, food prices, and even how much to tip. No fluff. Just what works on the ground.