Measuring more than 1.2 million square miles (about twice the area of Alaska), India is home to the world’s largest population living across deserts, mountains, beaches, and bustling cities.
If you plan to visit or send money to India, you’ll likely need to get your hands on the Indian currency: the rupee. One easy way to do that is with Western Union, a trusted global leader in cross-border money transfers and currency exchange.
Let’s briefly explore the history of the Indian rupee, its uses, and tips for completing your rupee currency exchange.
What is the currency in India?
The rupee is the currency of India. It’s denoted by the symbol “₹” and the code INR. You can break down one rupee into 100 paise, a monetary subunit of the rupee (just like 100 pennies make up one US dollar). The Reserve Bank of India (RBI) issues and regulates rupees.
Rupees come in various banknotes. According to the RBI, the following rupee banknotes are currently in circulation:
- ₹10
- ₹20
- ₹50
- ₹100
- ₹200
- ₹500
- ₹2000
It’s important to note that ₹1, ₹2, and ₹5 rupee denominations exist in coin form.
The RBI also states that the following paisa coins are currently being minted:
- 10 paise
- 20 paise
- 25 paise
- 50 paise
While these paisa coins are still legal tender, their use in daily transactions has decreased significantly, and finding some may be challenging.
History of the Indian rupee
The earliest form of currency in India goes back to the 6th century BCE during the reign of the Mahajanapadas, where silver punch-marked coins were used by the country’s rulers. As various empires came and went over the coming centuries, so did different currencies according to their beliefs and values. It wasn’t until the Mughal Empire in the 16th century that Sher Shah Suri, a prominent ruler, introduced the silver “rupiya.” This was the precursor to today’s rupee.
In the 17th century, the British East India Company began exerting heavy influence over Indian currency by using a mix of local and British currencies. Then, in 1835, the British standardized the rupee as India’s official currency. The central bank first pegged the rupee to the price of silver, meaning its value fluctuated with the global price. In 1898, the Indian Currency Act moved the rupee to a gold standard.
After gaining its independence in 1947, India retained the rupee as its official currency and continues to use it today.
7 tips for exchanging US dollars to rupees
When exchanging US dollars for Indian currency, you need to know a few things, including where to make your exchange, USD to INR rates, and how to find a reputable exchange. Western Union is a trusted currency exchange service with a global network, including several locations in India. Our online platform also enables you to make quick conversions, and we offer transparent fees with competitive exchange rates.
1. Research and compare exchange rates
Rates aren’t the same at every exchange provider. Track live exchange rates from multiple places, including banks, ATMs, and currency exchange providers like Western Union. Remember to include the associated fees with currency exchange, which can be a major factor in receiving a favorable rate.
2. Notify your bank ahead of traveling
If you’re planning a trip to India and want to make purchases with your debit or credit card, you’ll want to notify your bank or credit card company beforehand. That way, when you start swiping your card in the country, your financial institution won’t flag the transactions as fraudulent.
3. Avoid exchanging money at airports, hotels, and tourist areas
While you’ll want to find a bank or reputable currency exchange service that can give you a good rate, there are some Indian money exchangers you’ll want to avoid. Some exchange services at airports, hotels, and common tourist areas can provide poor exchange rates.
Unlicensed street vendors are perhaps even more dangerous. These exchangers may offer you a great rate on the surface but could be scamming you or giving you counterfeit currency. Steer clear of unlicensed street vendors and stick to reputable services like Western Union or authorized exchange bureaus for currency exchange.
4. Consider commissions and fees
Currency exchange services often don’t provide their services for free. While some exchanges earn their money from the spread between the price that currencies are bought and sold, others charge additional fees and commissions on top of your exchange rate.
Indian currency exchange fees can include:
- Transaction fee: A flat fee charged for an exchange transaction.
- Credit card fee: Charged if you use your credit card to make an exchange.
- Convenience fee: Charged at airports, hotels, and other locations.
- Commission fee: Charged as a percentage of the exchange value or a flat fee.
5. Withdraw rupees instead of US dollars from ATMs
If you want to save on Indian currency conversion fees, you can withdraw rupees instead of US dollars from ATMs. This can be one of the best ways to exchange currency in India. That’s because when you withdraw local currency, your bank handles the currency conversion (usually at a more advantageous rate), and you can typically avoid additional fees.
6. It’s better to get rupees in India than the US
It’s typically best to exchange your currency in India rather than the US. Exchange rates in India are usually more favorable. Plus, you’ll have access to a wider array of local exchange options like Western Union, which has several in-person locations throughout India. You also won’t have to travel with large amounts of rupees in your pocket, which may be a safety or security concern.
7. Use reputable currency exchanges
You should only use reputable currency exchanges for your money services. Established banks and authorized exchange providers are great options. For example, Western Union enables you to easily send money to India for a friend or family member or convert USD to Indian currency for your own use.
For even more convenient exchanges, the Western Union® app has several security features to protect your money, including:
- Transfer tracking
- PCI DSS compliance
- Encryption
- App Touch ID-enabled
Using money in India
You can use Indian money nationwide to pay for goods and services. But knowing Indian money customs and etiquette before traveling can always be helpful. Let’s explore a few.
Can you use US dollars in India?
Dollars are generally not accepted throughout India. However, if you are traveling in tourist-heavy locations with many expats, you may see some businesses like hotels accept US dollars. Often, you’ll be asked to exchange your dollars for rupees to pay for goods and services throughout India.
Tipping etiquette in India
Unlike the tipping culture in the US, tipping in India is usually only practiced in urban areas for services like food delivery or salon/spa treatments, with around 10% being a common but not necessary gratuity. Other services like taxi rides and hotel staff don’t require tipping, but a few rupees or rounding up a bill can be a nice gesture for good service and a positive experience.
Where to get Indian rupees near me?
After you arrive in India, you can obtain Indian currency at exchange providers like Western Union or ATMs. Some local banks may offer currency exchange services, although it’s wise to check availability and any associated fees beforehand. Major airports, tourist areas, and commercial districts also often have currency exchange services, but it’s best to avoid these.
Find a currency exchange near you to easily exchange your money for use throughout the country.
FAQs
Can I use my debit card in India?
You can sometimes use your debit card in India, but it’s important to check with your bank first to see if it’s possible. You can sometimes use debit cards to pay for goods and services or to withdraw cash from local ATMs. You’ll also want to notify your bank of travel dates ahead of time so it does not freeze your card due to suspected fraudulent activity.
How much is the US dollar in Indian rupees?
Exchange rates change daily, so you’ll want to check the latest USD to INR rate online or at a Western Union location before traveling to India or sending money to someone in the country.
Can I exchange money through Western Union in India?
Yes, Western Union has numerous agent locations across India where you can exchange currency or receive money sent from abroad.
