Currency Exchange-India

On arrival at the airport in India, foreigners may exchange currency at the currency exchange booths located inside the airport. These booths are usually available before you leave the customs area. If you walk out of the airport you may not be allowed back in to exchange foreign currency.

Some points to remember when exchanging currency in India. Always exchange foreign currency at authorized dealers — bank branches, licensed money changers (look for the RBI licence number on display), and forex counters at major airports. Most banks are authorized to deal in foreign exchange. Well-known forex chains operating in India include Thomas Cook India, Centrum Direct, EbixCash (formerly Cox & Kings) and BookMyForex.

Insist on a currency exchange receipt. This proves the source of your funds in India. Currency exchange receipts clearly show the amount of foreign currency exchanged for Indian currency and the rate of exchange you were given.

Which Rupee notes are currently valid?

On 8 November 2016 the Government of India demonetized the old Rs 500 and Rs 1000 notes overnight and later released redesigned Rs 500 and new Rs 2000 notes. The Rs 2000 note itself was then withdrawn from circulation by the Reserve Bank of India in May 2023. It technically remains legal tender but banks no longer issue it and most merchants will refuse to accept it.

When you exchange currency today you should only receive and carry these current denominations:

• Notes: Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500.
• Coins: Rs 1, Rs 2, Rs 5, Rs 10, Rs 20.

If a dealer hands you an old-series Rs 500 or any Rs 1000 note, refuse it — those have not been legal tender since 2016. If you are given a Rs 2000 note, deposit it at a bank rather than trying to spend it. Counterfeit notes do exist; check the security thread and watermark on any Rs 500 note before accepting it.

Do not fall victim to people trying to entice you by saying they will give you a better exchange rate than what the banks may offer you. If you save your currency exchange receipt you will be able to reconvert your left over Indian currency back to foreign currency at the airport where you fly out from. When buying rail tickets etc that are available on a priority basis for tourists only.

If you have proof of currency exchange receipt you will be allowed to pay for the tickets in Indian rupees. Other wise you will have to pay in foreign currency only. Do not purchase foreign currency form local residents.

Buying foreign currency from unauthorized places is also illegal. Fake foreign currency is also a real risk in tourist areas.

Traveller's cheques are no longer practical

American Express discontinued issuing travellers cheques in most markets by around 2020, and almost no bank or forex dealer in India will still cash them. If you are reading older advice that recommends travellers cheques, ignore it — it is out of date.

What to use instead of traveller's cheques

• ATMs (the easiest option) — Most ATMs in India accept foreign Visa, Mastercard and Maestro cards. Withdraw rupees directly from your home account; most banks limit foreign-card withdrawals to around Rs 10,000 per transaction. Tell your home bank you'll be in India before you travel so they don't block the card.
• Forex cards — Prepaid multi-currency cards from Indian issuers (HDFC, ICICI, SBI, Axis, BookMyForex etc.) that you load with INR at a fixed rate before travel. Useful if you want to lock in a rate.
• Cash exchange — Change a small amount at the airport for immediate expenses, then a larger amount at a city bank or licensed money changer where rates are better. Private money changers who display an RBI licence are fine and sometimes offer slightly better rates than banks; always ask for the printed receipt.
• UPI — Visitors from a short list of countries (Australia, Canada, France, Hong Kong, Malaysia, Oman, Qatar, Singapore, UAE, UK, US) can now use their home UPI-linked payment apps in India at merchants that accept UPI. Check with your bank whether cross-border UPI is enabled on your app.

Always insist on a receipt whenever you exchange cash. The receipt documents the source of your rupees and lets you reconvert any leftover rupees back to foreign currency when you fly out.