US Dollars in India: What You Need to Know Before You Travel

When you’re planning a trip to India, one of the first questions you ask is: US dollars in India, the official foreign currency most travelers bring when visiting. Also known as USD, it’s widely recognized but not used for everyday spending. You can’t walk into a local market in Jaipur or a street food stall in Mumbai and pay with a $20 bill. India’s official currency is the Indian Rupee (INR), the only legal tender for daily transactions, and that’s what you’ll need for rickshaws, chai, temple donations, and train tickets.

That doesn’t mean US dollars are useless. Many hotels, upscale restaurants, and international tour operators in cities like Delhi, Goa, or Bengaluru will accept them—especially if you’re booking a multi-day package or paying for a luxury train ride. But even then, they’ll convert it for you at a rate that’s rarely in your favor. The real value of US dollars in India? They’re your backup. Carry them as a safety net, not your main cash. Currency exchange, the process of swapping USD for INR is best done at banks or authorized counters at airports or major cities. Avoid street vendors—they’re risky, and the rates are terrible. ATMs are your friend. Use your debit card at Indian bank ATMs to pull out rupees directly. It’s cheaper, faster, and safer than carrying large amounts of cash.

Don’t assume your credit card will work everywhere. Small shops, temples, and rural areas often only take cash. And if you’re heading to a place like Rameshwaram or Nagpur for adventure travel, you’ll need rupees for local transport, snacks, and entry fees. Even if you’re staying in a five-star hotel, you’ll still need cash for the chaiwala outside, the guide at the Taj Mahal, or the tip for the porter. USD to INR, the exchange rate fluctuates daily but usually hovers around 83-85 rupees per dollar. Check it before you go, but don’t stress over locking in a rate—you’ll get a decent deal at a bank.

Most travelers make the mistake of bringing too much cash. You don’t need to carry $1,000 in your pocket. $300–$500 is enough as a reserve. Use cards for big bookings and ATMs for daily spending. And never, ever exchange money at your hotel’s front desk unless it’s an emergency—they charge the worst rates. If you’re flying into India, head straight to the airport’s forex counter after customs. It’s regulated, secure, and open 24/7. Keep your receipt. You’ll need it if you want to convert leftover rupees back to dollars before you leave.

What about travelers from other countries? If you’re coming from Europe or Australia, you might think euros or AUD are better. They’re not. US dollars are the most widely accepted foreign currency in India, even if you can’t spend them directly. That’s why it’s still the smartest currency to bring. Just remember: India runs on rupees. Everything else is just backup. When you’re standing in front of the Taj Mahal at sunrise, you won’t be handing over a dollar bill—you’ll be handing over rupees. And that’s how it should be.

Below, you’ll find real advice from travelers who’ve navigated money in India—from budget tips for the Taj Mahal to how to handle cash during monsoon season. No fluff. Just what works.