Indian Rupee (INR ₹) - Currency Guide for India Travel

India's official currency is the Indian Rupee, denominated as INR and symbolized ₹, issued and regulated by the Reserve Bank of India headquartered in Mumbai. The rupee subdivides into 100 paise, though paise denominations below ₹1 coins have largely disappeared from practical circulation since 2011. Current banknotes in active circulation are ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2,000, with the ₹2,000 note withdrawn from printing in 2023 though remaining legal tender. Coins circulate in denominations of ₹1, ₹2, ₹5, ₹10, and ₹20, with the ₹20 coin introduced in 2019. On November 8, 2016, the government invalidated all ₹500 and ₹1,000 notes then in circulation through a demonetization policy intended to target undeclared wealth, affecting approximately 86 percent of currency by value overnight and requiring complete note replacement over subsequent months.

Exchanging foreign currency into rupees occurs through authorized dealers including banks, standalone exchange counters at international airports, and licensed money changers in major cities. International airports at New Delhi, Mumbai, Bangalore, Chennai, Hyderabad, and Kolkata maintain 24-hour exchange counters beyond immigration and customs areas. Exchange rates fluctuate daily, with airport counters typically offering rates 2 to 4 percent less favorable than bank branches due to convenience premiums and operating costs. State Bank of India, HDFC Bank, ICICI Bank, and Axis Bank operate branches with foreign exchange services in cities receiving substantial international visitor traffic. Private exchange operators such as Thomas Cook India and UAE Exchange maintain walk-in locations in commercial districts of major cities. Documentation requirements for currency exchange include a valid passport with current visa stamp, though amounts exceeding USD 5,000 equivalent trigger additional declaration paperwork under Foreign Exchange Management Act regulations. Receipts from official exchanges must be retained, as they may be required when reconverting unused rupees to foreign currency at departure, subject to a limit of ₹25,000 or the original exchange amount, whichever is lower.

ATMs number over 213,000 nationwide as of 2023 Reserve Bank of India data, with concentrations in urban centers and tourist areas but sparse distribution in rural districts. Visa and Mastercard networks provide the widest acceptance, while American Express and Diners Club cards function at a smaller subset of machines, primarily those operated by major private banks. Withdrawal limits vary by issuing bank and account type but typically range from ₹10,000 to ₹25,000 per transaction, with most machines dispensing ₹500 notes and occasionally ₹200 or ₹100 denominations. Indian banks impose fees on foreign card withdrawals, usually ₹100 to ₹250 per transaction regardless of amount, in addition to currency conversion fees and foreign transaction fees charged by the card-issuing bank. State Bank of India operates the largest ATM network with approximately 64,000 machines, followed by ICICI Bank, HDFC Bank, and Punjab National Bank. Power outages, network failures, and machines running empty of cash occur with measurable frequency outside major metropolitan areas, particularly during festivals and month-end salary disbursement periods.

Credit cards see acceptance at hotels classified three-star and above, airline offices, large retail chains, restaurants in major cities, and established tourist attractions with formal ticketing systems. The 2016 demonetization policy accelerated merchant adoption of card terminals, though penetration remains uneven. Visa and Mastercard dominate acceptance infrastructure, while American Express and Diners Club face limitations outside premium establishments. Small shops, street food vendors, local transportation, temple donation counters, entry fees at minor archaeological sites, and most transactions outside city centers operate cash-only. Some merchants accepting cards impose surcharges of 2 to 3 percent to offset payment processing fees, a practice officially prohibited by the Reserve Bank of India since 2018 but sporadically enforced. Foreign transaction fees applied by card issuers typically range from 1 to 3 percent of purchase value, alongside dynamic currency conversion markups if merchants offer the option to charge in the cardholder's home currency.

Unified Payments Interface, known as UPI, has become the dominant digital payment method domestically since its 2016 introduction, processing over 10 billion transactions monthly by late 2023 according to National Payments Corporation of India data. UPI enables instant bank-to-bank transfers via smartphone apps using mobile numbers or scannable QR codes, with platforms including PhonePe, Google Pay India, Paytm, and BHIM processing the majority of transaction volume. Merchants from large retail chains to individual roadside vendors display QR codes for UPI payments, with adoption particularly dense in urban areas and among younger demographics. Foreign visitors cannot access UPI directly without an Indian bank account and Indian mobile number, limiting its utility for short-term travel despite its ubiquity among domestic users. Mobile wallet services such as Paytm, MobiKwik, and Freecharge store prepaid balances and accept credit card top-ups, though their advantages over direct card payments diminish for foreign visitors and these platforms gained traction primarily during the transition period following demonetization.

Cash remains essential across most of the country's geography. Rural areas, small towns, transportation operators, street vendors, markets, local guides, porters, temple priests receiving donations, and informal lodgings require physical currency. Carrying denominations below ₹100 proves necessary, as many small vendors lack change for ₹500 notes and ₹2,000 notes face frequent refusal due to past counterfeiting concerns and change-making difficulty. New banknotes often receive preference over worn ones, particularly in rural areas where damaged notes may be rejected. The Reserve Bank of India permits exchange of torn or damaged notes at bank branches following specific damage-assessment criteria, but the process consumes time unsuitable for travelers on fixed itineraries.

Costs vary dramatically by category and region. Government-operated museums charge Indian nationals ₹10 to ₹50 for entry while foreigners pay ₹250 to ₹600 at the same sites, a two-tier pricing structure legally established for Archaeological Survey of India monuments including the Taj Mahal, which charges foreigners ₹1,050 versus ₹50 for Indians as of 2024. Long-distance train fares in air-conditioned classes range from ₹800 to ₹3,000 for journeys of 500 to 1,000 kilometers, while second-class seating costs ₹200 to ₹500 for equivalent distances. Budget hotels in non-metropolitan areas charge ₹800 to ₹2,000 per night, mid-range hotels in cities ₹3,000 to ₹7,000, and international chain properties ₹8,000 to ₹25,000. Street food items cost ₹20 to ₹80 per serving, casual restaurant meals ₹150 to ₹400 per person, and formal dining in cities ₹800 to ₹2,500. Domestic flights between major cities range from ₹3,500 to ₹8,000 depending on route and booking timing. These figures shift with season, fuel costs, and economic conditions.

Tipping operates without universal standards. Hotel porters typically receive ₹50 to ₹100 per bag, housekeeping ₹100 to ₹200 per night in mid-range properties. Restaurants often include a 10 percent service charge on bills, in which case additional tipping is optional, though 5 to 10 percent of the pre-tax total is customary when service charges are absent. Taxi and auto-rickshaw drivers operating on metered fares do not expect tips, though rounding up to the nearest ₹10 or ₹20 occurs commonly. Hired drivers for multi-day tours receive ₹300 to ₹500 per day as a tip at trip conclusion. Tour guides at monuments expect ₹200 to ₹500 for half-day services and ₹400 to ₹1,000 for full days, with amounts scaling to group size.

Bargaining applies in markets, with vendors in tourist areas initially quoting prices two to five times the amount they will accept. Fixed-price retail stores, government emporiums, and chain outlets do not negotiate. Bargaining begins by offering 40 to 50 percent of the first quoted price and settling typically around 60 to 70 percent. Auto-rickshaw fares should be agreed before departure in locations where meters are absent or drivers refuse to use them, with locals paying roughly half the initial quote given to visibly foreign passengers. Gemstone dealers, carpet sellers, and handicraft shops in tourist circuits employ high-pressure tactics and vastly inflated opening prices, with quality verification difficult and returns nearly impossible.

Tax structures include Goods and Services Tax implemented in 2017, applied at various rates across categories: 5 percent on economy hotels and basic food items, 12 percent on standard hotel rooms, 18 percent on most services and mid-range accommodations, and 28 percent on luxury goods and premium hotel stays. Restaurant bills may show separate line items for GST, with larger establishments also adding service charges of 10 percent that are discretionary despite appearing mandatory. Foreigners departing India cannot reclaim GST paid on purchases, as no tourist tax refund scheme exists.

Banks operate generally from 10:00 to 16:00 Monday through Friday and 10:00 to 13:00 on alternating Saturdays, with substantial variation by institution and branch. ATMs function 24 hours when operational, though failures increase late at night and during festivals. Currency exchanges at airports maintain extended hours, with major international terminals offering round-the-clock service. Public holidays close banks and reduce ATM servicing, with nationally observed closures including Republic Day on January 26, Independence Day on August 15, and Gandhi Jayanti on October 2, alongside numerous regional and religious holidays varying by state. Festivals such as Diwali in October or November see increased cash demand, reduced banking hours, and higher instances of ATMs running empty.

Carrying a mixture of payment methods proves necessary: a supply of cash in denominations from ₹10 to ₹500, at least one Visa or Mastercard for larger expenses and hotels, and awareness that backup options may be required at any point. Notifying card issuers of India travel dates reduces fraud-triggered card blocks, which occur frequently given the country's past association with card skimming incidents. Splitting cash across multiple locations in luggage and keeping daily amounts separate from reserves limits loss exposure. Damaged or excessively worn rupee notes should be exchanged at banks before attempting to use them in transactions, as vendors reject them routinely.