What is the Currency in India?

Learn what currency India uses, how the Indian rupee works, and tips for managing money as a UK visitor

What is the Currency in India?

If you’re planning a trip to India or sending money to family and friends there, it’s essential to understand how the currency works. This guide is written for UK travellers, business owners, and anyone dealing with Indian financial transactions. It covers everything you need to know about India’s currency, including denominations, exchange tips, and how to manage your money while abroad.

What is the official currency of India?

The official currency of India is the Indian Rupee, abbreviated as INR and commonly represented by the symbol ₹. All domestic transactions in India are carried out in rupees, and it is the only legal tender accepted in the country.

Prices across India—from restaurants and shops to taxis and tourist attractions—are displayed and paid in rupees.

How is the Indian rupee structured?

The Indian rupee is divided into 100 paise, although paise coins are now rarely used due to their low value. Banknotes are the most common form of currency and include the following denominations:

  • ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2,000

  • Coins include ₹1, ₹2, ₹5 and ₹10

At the time of writing, £1 is worth approximately 105–110 INR, though exchange rates vary regularly. Always check up-to-date rates before exchanging or sending money.

Can you use pounds or other foreign currencies in India?

No. Foreign currencies such as British pounds, US dollars or euros are not accepted for direct payments in India. All goods and services must be paid for in Indian rupees.

Some larger hotels or international businesses may quote prices in foreign currencies for convenience, but payment must still be made in INR.

Should you bring cash or use a card in India?

India uses a mixed payment system. In major cities like Delhi, Mumbai, or Bangalore, debit and credit cards (especially Visa and Mastercard) are widely accepted in hotels, shopping malls and large restaurants. Contactless payments and mobile wallets (like Google Pay and PhonePe) are also popular.

However, in rural areas or with small local businesses, cash is still essential. Many street vendors, autorickshaw drivers and market stalls only accept cash.

For UK visitors, it’s advisable to carry a combination of cash and a fee-free travel card, such as those offered by Monzo, Starling or Revolut, to manage payments cost-effectively.

Exchanging money in India

You can order rupees from UK currency providers before travelling, although INR may not always be in stock. Many travellers choose to exchange money at banks, airport kiosks or authorised money changers after arriving in India.

ATMs are widely available across urban India, and most accept international cards. However, it’s important to check whether your UK bank charges foreign transaction fees. Also, note that Indian ATMs may have withdrawal limits and local fees, so plan accordingly.

Tips for handling money in India

  • Carry small denominations—especially in rural areas, where change may not always be available

  • Use cash for tips, street food, and transport

  • Avoid exchanging money with street vendors—always use licensed exchange counters

  • If using ATMs, stick to machines located at banks or inside secure buildings

  • Opt to pay in rupees rather than pounds when using your card to avoid dynamic currency conversion fees

Common misconceptions

Some UK travellers assume they’ll be able to use foreign cash or cards for everything. While cities are becoming increasingly digital, India still relies heavily on cash—particularly in smaller towns and villages.

Another misconception is that all ATMs will accept UK cards. While most do, it’s important to ensure your card is enabled for international use before travelling, and that you carry a backup option in case your card is declined.

In summary

India uses the Indian rupee (INR) as its official currency. Cash is widely used, especially outside major cities, though cards and mobile payments are common in urban areas. UK travellers can manage their money wisely by combining rupees with a low-fee travel card, avoiding currency exchange at airports, and staying alert to card charges.