Are you planning to travel to India? Before diving into a fascinating, contrasting and intense country, it is essential to understand how the Indian currency, the rupee, works. Between coins and banknotes, excepted payment methods, and the best places to get money, informing yourself in advance helps you to have a more relaxed trip.
In this guide, find out everything you need to know about the currency in India, how to pay, exchange and withdraw money, for a stay with confidence.
What is the currency in India?
The Indian rupee has been the official currency in India since 1947, issued by the Reserve Bank of India:
- Its symbol is: ₹
- Its abbreviation is INR (Indian Rupee)
- 1 rupee can be divided into 100 paisās
Check the up-to-date British Pound to Indian Rupee conversion rate with Western Union.
Note: the word rupee comes from the Sanskrit “rupyakam” (meaning “silver coin”). Bhutan and Nepal have their own national currencies: the Bhutanese ngultrum (BTN) and the Nepalese rupee (NPR). In both countries, the Indian rupee (INR) is widely accepted alongside the local currency under long‑standing monetary arrangements.
The Bhutanese ngultrum is pegged at parity with the Indian rupee (1 INR = 1 BTN), and the Nepalese rupee is pegged at a fixed rate of 1 INR = 1.6 NPR. Acceptance of INR and applicable rules may vary by location and are subject to local regulations
What are the Indian coins and banknotes?
The Indian currency is made up of various coins and notes, ranging from 1 rupee to 500 rupees:
- Indian coins: 1, 2, 5 and 10 rupees
- Indian banknotes: 10, 20, 50, 100, 200, and 500 rupees
Each Indian rupee note has a different colour depending on its value (for example, the 100-rupee note is lavender coloured). The value of each banknote is written in total 17 different languages recognized in India (such as Bengali, Kashmiri, Sanskrit or Urdu). In addition, while the back of the banknotes depicts Mahatma Gandhi, the front represents a historical or cultural site (e.g., the front of the 500-rupee note depicts the Red Fort in Delhi).
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How do I pay in India?
In India, the dominant payment method is UPI, a real‑time mobile payment system that typically enables near‑instant transfers via mobile app. However, cash remains the universal means of payment, especially in rural areas, markets and small businesses. In large cities, such as Mumbai, Delhi or Bangalore, credit card payments are also very common.
Pay with cash
Cash remains an essential means of payment in India. In addition, many small restaurants, rickshaw drivers, street vendors, temples and sights, local guides, and family-run accommodations might only accept cash in Indian rupees. Similarly, they are necessary to leave tips.
So always remember to have a sufficient amount of Indian rupees on you, especially small denominations (₹10, ₹20, ₹50, ₹100), as merchants often run out of change and may refuse to give change on large banknotes. If you only have large Indian rupee banknotes when you arrive, remember to break them in supermarkets or shopping malls.
Be careful not to go out on the street with all your cash on you, by distributing your Indian money in different places (wallet, safe, bag, etc.). Also, don’t take out your wallet in public to reduce the risk of theft.
Note: only accept banknotes in good condition, as banknotes that are torn, taped, very crumpled or annotated are often refused. Also, be wary of counterfeit banknotes, especially ₹500 denominations, by checking for watermarks, security strip, and embossed prints.
Pay by credit card (credit or debit)
As in Thailand or Egypt, debit and credit cards (Visa and Mastercard mainly) are a widely accepted means of payment in major cities in India, and in particular in mid- to upper-category hotels, luxury restaurants, shopping malls and tourist souvenir shops, and travel agencies. Outside of these places, you may have difficulty paying with your credit card, and payment by cash only will be more common.
To avoid any risk of your card being blocked or payment refused, remember to indicate the dates of your stay to your bank and to raise the payment and withdrawal limit. When paying by card, always choose to pay in Indian rupees and not British pounds, as the dynamic conversion applied by merchants might be disadvantageous. Similarly, check the foreign exchange and transaction fees applied by your bank and those sometimes applied by merchants.
Mobile Payments
India has developed a very powerful mobile payment system for locals: UPI (Unified Payments Interface), which works with applications such as Google Pay, PhonePe or Paytm. It is now a major payment method in the country, used by millions of Indians on a daily basis.
Since 2023, some tourists can use UPI applications, especially through partnerships between Paytm and foreign banks. However, this option remains limited and requires prior configuration. For travellers without UPI access, contactless card payment is also possible, especially at major brands and hotels with modern terminals.
Can I pay in British pounds in India?
No, it is rarely possible to pay in British pounds in India, as the British pound is not an accepted currency for current payments. Only certain high-end hotels or luxury boutiques can display prices in euros or dollars and might even accept them.
Most of your everyday purchases must be made in Indian rupees. In addition, even when payment in British pounds is possible, it is not recommended, because the exchange rate applied might be unfavourable.
Where to exchange money in India?
You can exchange your money in India:
- In approved or private exchange offices, many of which are in cities
- At exchange offices at the airport and ports
- In banks (State Bank of India, HDFC Bank, ICICI Bank, etc.)
- In high-end hotels
To get Indian money, licensed exchange offices in the city centre and some Indian banks usually offer the competitive rates. Airports and hotels might charge higher margins. However, it is practical to have Indian rupees on arrival.
No matter where you exchange your money in India, keep these best practices in mind:
- Avoid unlicensed exchange offices, as currency exchange must be done with institutions authorized by the Reserve Bank of India.
- Compare the exchange rates offered around you, as each rate is determined by the property and may vary from place to place.
- Check for hidden commissions and fixed or variable fees and ask for a receipt for each foreign exchange transaction.
- Never exchange money on the street in India, even if the rate offered is attractive, as it is illegal and carries a risk of fraud (counterfeit notes, Indian currency scam, pickpocketing).
- You can send money for cash pickup ahead of your travel with Western Union. This way you can pick a moment with a favourable exchange rate to make the transaction and collect Indian rupees at any Western Union location in India as soon as you arrive.
Note: the import and export of Indian rupees is prohibited. You will not be able to bring large quantities of Indian currency back to the UK. Plan to spend as much Indian money as possible or exchange your currency into British pounds at the airport before your departure.
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Where to withdraw money in India?
You can withdraw money in India from ATMs spread across the country. These vending machines are very common in medium and large cities and tourist areas but are more difficult to find outside of them.
Usually, you can withdraw money from banks, airports, hotels, shopping malls, major shopping streets, etc. If you have a Visa, MasterCard, Maestro, or Cirrus card, banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, or Citibank India usually offer safe and reliable ATMs for your withdrawals.
Withdraw from ATMs inside banks or secure shopping malls, not from isolated or dimly lit kiosks. Also check that your card is accepted by the ATM. Never accept assistance from unknown people around a cash machine, even if they seem well-intentioned.
Note: each cash withdrawal in India involves a commission from the local bank and fees from your bank in the UK (withdrawal fees and commissions on exchange rates).
FAQ
What money is used in India?
The money used in India is the Indian rupee (currency symbol ₹).
How much is a rupee worth in British pounds?
Check the up-to-date British Pound to Indian Rupee conversion rate with Western Union.
How do I send money to India?
With Western Union, you can easily send money to India from the UK:
- Online in a few clicks, via our website,
- With our mobile app,
- In person, by visiting one of our agent locations.
The recipient can receive the money either in cash or into their account.
This blog is provided for general informational purposes only and does not constitute legal advice. While we strive to ensure accuracy, information may change over time. For advice regarding your specific situation, please consult a qualified legal or professional advisor and refer to official sources.
