Currency in India: what to use and how to exchange

The rupee is a closed currency in practice: you cannot buy it before you arrive in most countries, and you cannot take large amounts out. That means your first rupees come from an airport counter, an ATM on arrival, or a bank in your first city. Airport counters are convenient but usually give the weakest rate; take only enough for the taxi and the first day, then withdraw or exchange in town.

ATMs are the simplest source of cash. Use machines attached to a bank branch, ideally during opening hours, so that a swallowed card or a failed dispense can be sorted out the same day. Standalone machines in tourist areas and small shops are the ones to avoid. Most Indian ATMs dispense ₹500 notes; break them at a chai stall, a supermarket or a hotel reception rather than relying on a taxi driver to have change.

For exchanging cash, banks and licensed money changers give a receipt, which matters if you later need to convert unused rupees back. Rates at hotels are usually poor. Street changers who approach you with a better rate are the classic setup for a short count or counterfeit notes.

Cards work well in Delhi, Mumbai, Bengaluru and other big cities — hotels, malls, chain restaurants, larger shops and many online bookings. Outside those, assume cash. UPI, the local phone payment system, is everywhere but generally needs an Indian bank account and phone number, so most visitors cannot use it.

Tipping is expected for drivers, guides and hotel staff, and 5–10% in restaurants that do not add a service charge. Keep a stack of ₹50 and ₹100 notes for this.