Best Currency to Take to India: Budget Traveler's Guide

Just landed in India, and you need to pay for a taxi, chai, or a hostel bed—what’s in your pocket? If you’re holding dollars, euros, or pounds, you’re covered. But spend them directly? Forget it. In India, you’ll need to swap for rupees, and picking the right money to bring can save you both time and headaches.

Most budget travelers swear by US dollars or euros. They’re easy to change at airports, banks, and those hole-in-the-wall currency booths you’ll spot in markets or near big attractions. Australian dollars and British pounds are also accepted, but not always with the best rates, especially in small towns.

Skip bringing rare currencies or coins. No exchange office wants your Canadian loonies or leftover Swiss francs; you’ll get a lousy deal or even a flat-out no. Bigger bills (like $50 or $100 notes) usually get you a better rate than small ones. But watch out—bills that are torn, scribbled on, or too old? Indian money changers just won’t take them. Always check your notes before packing.

• Why Bringing Cash Makes Sense
• Which Foreign Currencies Are Widely Accepted
• Finding the Best Exchange Rates
• Cards vs. Cash: What Really Works in India
• ATM Realities on the Ground
• Money Safety, Scams, and Smart Moves

Why Bringing Cash Makes Sense

Landing in India without some ready cash is asking for trouble. Cards seem easy, but they don’t always work here—sometimes ATMs run out of money, sometimes foreign cards just get rejected. Even at big airports like Delhi or Mumbai, you can run into long lines at ATMs or horror stories of machines swallowing cards. That’s not exactly the welcome you want after a long flight.

In India, cash is still king, especially for budget travel India. Rickshaw drivers, small cafés, market stalls, and hostels usually want rupees—no card readers, no QR codes. Even some domestic flights and long-distance trains can throw you a cash-only curveball for snacks or upgrades. And in rural or offbeat places? Forget finding a card machine.

Here’s the smart play: Arrive with enough hard currency (like US dollars, euros, or British pounds) to cover at least a couple of days. That way, if you can’t find a working ATM or decent exchange, you’re never stranded. Plus, airport exchange counters—where you're most likely to trade your currency India—sometimes run out of rupees, especially during peak tourist seasons.

• Bring several crisp, recent large bills (preferably $50s or $100s; smaller bills get worse exchange rates).
• Avoid carrying coins or very small notes; they’re basically useless here.
• If you’re traveling outside big cities, double up on cash. Rural India is often card-shy.

According to a 2024 Reserve Bank of India report, about 75% of transactions under 500 rupees are still done in cash—old habits die hard. So, if you want a hassle-free start, showing up with exchangeable cash is just smarter. It keeps you out of sticky situations, especially at the start of your adventure.

Which Foreign Currencies Are Widely Accepted

Let’s cut to the chase—most money changers in India want big-name bills. If you’re rolling in US dollars, euros, or British pounds, you’re golden. These are the top picks for exchanging to Indian rupees, and you’ll get the best exchange rates for them, especially at airports or banks in big cities like Delhi, Mumbai, and Bangalore.

Australian and Canadian dollars are also accepted by most money changers, but you’ll notice slightly weaker rates. Don’t bet on getting a fair deal for lesser-known currencies like the South African rand or Japanese yen. Sometimes, you might find a well-connected booth in a touristy city that’ll take other notes, but outside major urban centers, you’ll likely get turned away or offered bad rates.

Here’s a quick look at what most change offices and banks usually handle:

• US Dollar (USD): Most widely accepted, best rates, easy to exchange nearly everywhere
• Euro (EUR): Widely accepted, especially in cities and travel hotspots
• Pound Sterling (GBP): Exchanged in most cities, especially tourist areas
• Australian Dollar (AUD): Basic acceptance, but not everywhere, moderate rates
• Canadian Dollar (CAD): Available in major cities, weaker rates

One thing—money changers in India rarely touch foreign coins, no matter the currency. Only bring bills, and make sure they look new. Torn or marked notes might be flat-out rejected, and older notes (for example, those old pre-2013 US $100 bills) can cause trouble.

If you stick with the big three—USD, EUR, or GBP—you’ll find it way easier to change money all over India. And don’t forget: always ask for small rupee notes when you exchange. Street stalls, tuk-tuks, and local shops love it when you’ve got the right change.

Finding the Best Exchange Rates

Nobody likes losing cash on bad rates, right? When it comes to swapping your money for rupees, a little research can stretch your budget further. Airport exchange counters in India are super handy right after you land, but they’re known for giving some of the worst rates—sometimes 5 to 10% less than what you’ll get in town. You usually pay for that convenience, so use them just for a small amount to get moving.

Banks usually offer the most official and transparent rates. In big cities, major banks like SBI, HDFC, and ICICI have foreign exchange desks. The process can be slow, so pack your patience and bring your passport. If you want a quicker swap, licensed currency exchange booths are all over tourist spots. Some are honest, but a few can try sneaky tricks like hidden fees or weird math, so always count your rupees before leaving the counter.

For the sharpest rate, compare with real-time currency apps like XE or Google’s Converter before you trade. As of early 2025, you might notice differences of 2-4 rupees per dollar between booths and banks. Over a week of travel, that adds up fast—not just pocket change.

• Airport booths: Use only if you have to—worst rates in most cases.
• Banks: Generally reliable and close to the real market rate.
• Local moneychangers: Decent rates, but double-check for scams or hidden commissions.
• ATMs: Convenient, but check your home bank’s withdrawal fees (sometimes fixed charges plus a percentage).

Here’s a quick look at how rates might stack up when changing $100 (as of May 2025):

One more thing—avoid changing money in hotels. Even fancy ones tend to offer the lowest rates and highest fees. Your best move is to change a little at the airport or hotel for immediate expenses, then shop around in the city when you have time and options. Little moves like this can make your budget travel India experience way smoother.

Cards vs. Cash: What Really Works in India

If you’re trying to figure out whether to lean on cards or cash in India, don’t expect a one-size-fits-all answer. Here’s how it really goes down: most places outside airports and big hotels prefer cash, especially in small towns, markets, street food stalls, or with rickshaw drivers. The Indian rupee is king. There’s no point trying to swipe your card at a roadside dhaba—nobody’s got a card machine.

But, India’s getting digital fast. Cities like Mumbai, Delhi, and Bangalore have loads of cafes and shops that happily accept Visa and Mastercard. Some spots now take contactless payments like Google Pay and Apple Pay, but that usually requires you to have an Indian bank account tied to your phone. Foreign cards sometimes work, but don’t count on it everywhere. American Express is much less common—don’t rely on it at all.

Banks here love ATM fees. International cards get hit with charges both from your home bank and the Indian bank’s ATM (often ₹200-₹500 per withdrawal). Plan on taking out larger amounts less often to save on fees. Also, it’s smart to tell your bank before you travel, or else you risk your card being blocked on the first try.

If you’re traveling beyond the big cities, expect to pay cash for almost everything—budget hotels, train tickets bought at stations, bus rides, museum entry, even bottled water. For trips to Rajasthan’s desert towns or the Himalayan hill stations, cards might as well stay in your bag.

• Always carry backup cash in Indian rupees, even if you love using your card.
• Plan to use cards mainly for larger expenses: hotels, domestic flights, and bigger shops in major cities.
• Keep smaller notes for daily buys—change is tough to get, and vendors won’t break a ₹2000 note for two samosas.
• Prepaid currency cards loaded with rupees sound handy, but they’re rarely accepted outside chain stores and hotels.

For budget travel in India, you can’t beat the flexibility of cash. Use cards where you can, but don’t ever depend on them for the basics. The travelers who wing it on cards alone are the ones you see stuck at an ATM that’s out of service—and that’s no way to start your day.

ATM Realities on the Ground

India has loads of ATMs, especially in cities and tourist hotspots, but don’t get too confident. The reality on the ground? Not every ATM plays nice with foreign cards, and not every machine is actually stocked with cash—especially in small towns or rural areas. If you see a working ATM with no line, take the chance even if you don’t think you need cash yet. You never know when you’ll find the next one actually operational.

Want the best odds? Stick with major banks. State Bank of India (SBI), HDFC, ICICI, and Axis Bank have the widest ATM networks and are most likely to accept international cards. Smaller bank ATMs are a gamble; sometimes they’ll eat your card or just shrug and spit out an error message. Look for ATMs in or near big shopping malls, airports, and hotels for extra security.

• India capped foreign bank ATM withdrawals at 10,000 INR per transaction (~$120 as of May 2025). Some ATMs let you do multiple withdrawals in a row, but each one comes with a fee.
• ATMs add a local fee between 200–500 INR per withdrawal. That’s about $2.50 to $6 — and your bank might hit you with a fee too.
• Always use ATMs during the day, or stick to ones inside malls or bank branches. Card skimming and pickpocketing can be a problem out on the street at night.
• Machines sometimes run out of cash at month’s end or after local festivals, so don’t wait until you’re down to your last rupee.

Here’s how ATM fees shake out for foreign travelers at the main Indian banks:

If your travel money India plan is mostly ATMs, always have a backup. Carry an extra card in a different bag or some spare currency India for emergencies. Machines sometimes eat cards, go offline, or toss out errors for no reason. And if it spits out your cash and says the transaction failed—keep the ATM slip and call your bank. Refunds can take weeks, but they usually sort it out.

Money Safety, Scams, and Smart Moves

Carrying cash in India comes with a few street-smart rules. Keep your currency India in more than one place—never flash all your rupees in public or carry all your cash in the same pocket. Split your stash between a wallet, a hidden pouch, and maybe a small day-pack. Losing everything at once is way harder this way.

Watch out for counterfeit notes, especially the Indian 500 and 2000 rupee bills. Money changers in airports and banks are solid, but if you’re swapping cash at a little booth or with a street moneychanger, double-check the notes. Fake notes feel thinner and look a bit off. If unsure, compare them to smaller bills you got from an ATM.

• Count your rupees before stepping away from any exchange counter. Sometimes, they’ll hand over 90% of your cash and wait for you to walk away.
• Don’t let anyone "help" you at ATMs, even if they look official. ATM scams are real—always shield your PIN and avoid using machines in isolated spots late at night.
• In busy markets and train stations, be alert for distraction scams. Someone will bump you while another picks your wallet. Use a crossbody bag and keep zippers closed.

Digital wallets like Paytm, Google Pay, and PhonePe are popular with younger locals, but they only work with Indian accounts. As a traveler, card payments now work in bigger restaurants, chain shops, or hotels, but don’t count on it at street food stalls or small guesthouses.

Keep a backup bank card and emergency stash of foreign currency India (like $50 or €50) hidden separately. It’ll save your trip if something gets lost. And finally, if you run into trouble, most Indian police won’t chase after lost cash. Always act before it happens, not after.