1. What is the official currency of India?

The official currency of India is the Indian Rupee (INR).

2. Are there any restrictions on foreign currency transactions in India?

Yes, there are certain restrictions on foreign currency transactions in India. These restrictions are in place to regulate the flow of foreign exchange and ensure stability in the country’s economy. Some of the important restrictions include:

1. Transactions with Pakistan and Bangladesh: All transactions with individuals or entities from Pakistan and Bangladesh require prior approval from the Reserve Bank of India (RBI).

2. Restrictions on investments: There are limits on the amount of foreign investment that can be made in certain sectors such as banking, insurance, media, and defense.

3. Limits on remittances: Individuals can make a maximum remittance of USD 250,000 per financial year for various purposes such as education, medical treatment, and travel.

4. Limits on cash transactions: The RBI has set a limit of Rs. 50,000 for any cash transaction involving foreign currency within India.

5. Reporting requirements: Any individual or entity making a transaction exceeding USD 10,000 or its equivalent needs to report it to the RBI.

6. Prohibition on illegal activities: Foreign currency transactions for illegal activities such as money laundering or terrorism financing are strictly prohibited.

It is important to note these restrictions may change periodically based on economic conditions and government policies.

3. What is the current exchange rate for local currency to US dollar in India?

As of September 2021, the current exchange rate for 1 US dollar to Indian rupee is approximately 73.2. This means that 1 US dollar is equivalent to around 73.2 Indian rupees. The exchange rate may fluctuate daily due to various factors such as economic conditions and market forces. It is always best to check with a bank or reliable currency converter for the most up-to-date exchange rates.

4. Is it better to use cash or credit cards for purchases in India?

It is generally recommended to use a credit card for larger purchases in India, as it offers more protection against fraud and may earn you rewards or cashback on your spending. However, for smaller purchases, it may be more convenient and practical to use cash. It is important to note that some merchants in India may only accept cash, particularly in rural areas. Ultimately, the best option will depend on your personal preferences and the specific situation.

5. Do businesses in India typically accept US dollars or do they prefer local currency?

Most businesses in India prefer to transact in local currency (Indian Rupees) and may not accept US dollars. However, some high-end establishments such as luxury hotels and international chains may accept US dollars. It is always best to carry Indian Rupees for transactions in India.

6. Are there any hidden fees or charges when exchanging money in India?

There are several potential fees and charges to be aware of when exchanging money in India:

– Exchange rate margins: Many currency exchange providers will add a margin to the real exchange rate, which means you may not receive the exact rate listed on currency conversion websites. It’s important to research and compare exchange rates before choosing a provider.
– Transaction fees: Some currency exchange providers may charge a transaction fee for their services. This can range from a flat fee to a percentage of the total amount exchanged.
– ATM fees: If you use an ATM to withdraw money, there may be additional fees charged by both your home bank and the Indian bank or ATM operator.
– Foreign transaction fees: If you use your credit or debit card to make purchases in India, your home bank may charge a foreign transaction fee for each transaction.
– Hidden fees: Always read the terms and conditions carefully when using a currency exchange service, as there may be hidden fees or charges that are not clearly disclosed.

It’s best to research and compare options beforehand to avoid any surprises. It’s also a good idea to inform your bank or credit card company of your travel plans so they can advise you on potential fees and charges.

7. Can I use ATMs from my home country bank in India to withdraw money?

It may be possible to use ATMs from your home country bank in India to withdraw money, but this will depend on your specific bank and the availability of international ATM networks in India. It is best to check with your home country bank before traveling to see if they have any partnerships or affiliations with banks in India that would allow you to use their ATMs without additional fees. Additionally, it is important to inform your home country bank of your travel plans and ask about any foreign transaction or currency conversion fees that may apply when using their ATM card in India.

8. Is it necessary to tip service workers and what is the customary amount in India?

Tipping is not necessary in India, but it is a common practice to show appreciation for good service. The customary amount for tipping varies depending on the type of service, location, and price of the service. In general, a tip of 10% – 15% is expected in most places. However, it is always best to go with your gut feeling and tip according to the level of satisfaction you have received from the service.

9. Can I purchase traveler’s checks before traveling to India, and are they widely accepted?

Yes, you can purchase traveler’s checks before traveling to India. They are widely accepted at major banks, hotels, and some restaurants and shops. However, keep in mind that traveler’s checks may not be as widely accepted as credit or debit cards. It is always recommended to carry a mix of payment methods when traveling.

10. Are there any restrictions or limits on bringing foreign currency into or out of India?

Yes, there are restrictions and limits on bringing foreign currency into or out of India.

1. Bringing Foreign Currency into India:
a) Up to USD 3,000 or its equivalent can be brought into India without any declaration.
b) Amounts exceeding USD 3,000 or its equivalent must be declared upon arrival in India on a Custom Declaration Form (CDF).
c) Any amount of foreign currency can be brought into India if it is being imported in the form of travelers cheques, banknotes or banker’s draft.

2. Taking Foreign Currency out of India:
a) Residents of India are allowed to take up to USD 2,500 or its equivalent in Indian Rupees (INR) out of the country per person per trip abroad.
b) Non-residents (foreign nationals and NRIs) can take out any amount of foreign currency that they had brought in while traveling to India without any limit.
c) NRIs are allowed to take up to INR 25,000 in Indian currency notes while leaving the country.

3. Limits for Other Currencies:
Apart from US dollars, other currencies such as British pounds, Euros and Australian dollars have limits set by the Reserve Bank of India (RBI). These limits are subject to change and should be checked with the RBI before travel.

4. Restrictions on Exit:
Indian citizens are not allowed to take Indian rupees outside the country except for limited amounts specified by the RBI.
Non-residents can also only take out INR up to an amount equivalent to INR 25,000 that they had brought while entering the country.

5. Reporting Requirements:
Any person coming into or leaving India with an aggregate value exceeding USD 10,000 must declare it on a Personal Disembarkation Card (PDC) and a Custom Declaration Form (CDF).

6. Gift Items:
Foreign citizens visiting India are allowed to carry duty-free gifts worth up to INR 10,000. This limit is INR 50,000 for Indian passport holders. Any amount exceeding this limit must be declared and duty will be charged accordingly.

7. Penalties:
If a person fails to declare any foreign currency or exceeds the above-mentioned limits, they may be subject to penalties such as fines or even imprisonment under the Foreign Exchange Management Act (FEMA).

It is always recommended to check with the relevant authorities before traveling to India for updated information on restrictions and limits on bringing foreign currency into or out of the country.

11. Do major hotels and restaurants accept credit cards, and if so, which types are most commonly accepted?

Most major hotels and restaurants in the United States accept credit cards, particularly Visa, Mastercard, American Express, and Discover. However, it is always best to check with the specific establishment beforehand to confirm their accepted forms of payment as smaller businesses may have more limited options.

12. Are there any unique features of the currency used in India, such as coins with different values or special designs?

Some unique features of the currency used in India include:

– The Indian rupee has both banknotes (paper currency) and coins. Banknotes come in denominations of 5, 10, 20, 50, 100, 200, 500 and 2000 rupees. Coins come in denominations of 1, 2, 5 and 10 rupees.
– There are also smaller coins with values less than one rupee, such as the paisa (1/100th of a rupee). However, these are rarely used or minted anymore.
– The design and images on Indian currency depict various historical and cultural elements of India. For example, the one rupee coin features an image of the Lion capital of Ashoka – a well-known symbol from ancient Indian history.
– Some coins also have Braille markings to aid visually impaired individuals in identifying their value.
– In October-November every year during the festive season of Diwali, special editions of coins featuring Hindu deities Lakshmi and Ganesh are minted for gifting purposes.
– There is also a “Mahatma Gandhi Series”of banknotes that have been in circulation since 1996 which feature portraits and quotes from Mahatma Gandhi – the father of Indian independence.

13. Is haggling acceptable when making purchases, especially in markets and smaller shops?

Yes, haggling is often a common practice in markets and smaller shops in many countries. However, it is usually not acceptable in larger shopping centers and chain stores. It is always best to ask around or observe the local customs to determine if haggling is appropriate before attempting to negotiate a price.

14. Can I pay for goods and services with a mix of both local currency and US dollars?

Yes, many businesses and merchants in countries outside of the US may accept a mix of local currency and US dollars. However, this may vary depending on the specific country and establishment. It is always best to check with the business or merchant beforehand to confirm their accepted forms of payment.

15. What is the most convenient way to exchange money while traveling through different regions of India?

The most convenient way to exchange money while traveling through different regions of India is by using ATMs. This allows you to withdraw local currency (Indian rupees) directly from your bank account, and most major cities and tourist destinations in India have a good network of ATMs. You can also exchange currency at authorized moneychangers or at banks, but this may involve additional fees or commission charges.

16. Are there alternative forms of payment in addition to cash and credit cards, such as mobile payments or digital wallets in India?

Yes, there are alternative forms of payment in addition to cash and credit cards in India. Some popular options include mobile wallets such as Paytm and Google Pay, which allow users to store money and make payments through their mobile phones. Other digital wallets like Amazon Pay and Airtel Money are also widely used for online transactions. Additionally, some banks offer their own mobile banking apps that allow customers to make payments directly from their accounts using their smartphones. Other popular payment options include UPI (Unified Payments Interface), QR codes, and Bharat Interface for Money (BHIM).

17. Is tipping expected during taxi rides, at hotels, or at other specific locations like spas or salons in India?

Tipping is not expected during taxi rides in India, but it is becoming more common in bigger cities like Delhi and Mumbai. It is also not expected at hotels, as most hotels include a service charge in their bills. Tipping at spas and salons is also not mandatory, but if you are satisfied with the service, a small tip of 10-15% of the total cost is appreciated by the staff.

18. Are there certain stores where tourists can receive tax refunds on their purchases before leaving India?

Yes, tourists can receive tax refunds on their purchases from stores that are registered under the GST (Goods and Services Tax) regime. This refund is called the GST Refund (GST-RFD) and it allows eligible tourists to claim a refund of the GST paid on goods purchased in India before leaving the country.

The GST-RFD scheme is available at designated airports and seaports across India. Tourists must provide proof of purchase such as original receipts and invoices, along with their passport and boarding pass, to claim the refund.

Tourists should look for stores that have a “GST refund” or “tax-free shopping” sign displayed, as these are the ones registered under this scheme. It is advisable to make purchases from these stores to be eligible for a tax refund.

19..How should I handle my leftover foreign currency when departing from India, including coins and smaller bills?

1. Spend it before leaving: The best way to handle your leftover foreign currency is to spend it before leaving India. Look for shops, restaurants or other establishments that accept the currency you have and use it to buy souvenirs, snacks or other items.

2. Exchange it at the airport: If you are unable to spend all of your foreign currency, you can exchange it at the airport. Most major airports in India have currency exchange counters where you can convert your foreign currency back to Indian rupees.

3. Use it for future trips: If you plan on traveling to the same country again, consider keeping your leftover foreign currency for your next trip. This will save you from having to exchange money again and may even help you save on exchange fees.

4. Donate it: You can also choose to donate your leftover foreign currency to a charity or organization that accepts donations in different currencies. This is a great way to put your spare change towards a good cause.

5. Keep some as souvenirs: Some people choose to keep a small amount of their leftover foreign currency as souvenirs from their trip. You can either keep some notes or coins as a memory or give them as gifts to family and friends.

6. Sell it online: If you have a significant amount of leftover foreign currency, consider selling it online through websites like eBay or Craigslist. Just make sure you check for any restrictions on sending foreign currencies through mail before doing so.

Remember, coins and smaller bills may be difficult to exchange so try to use them up during your trip or donate them if possible. It’s always best to plan ahead and budget accordingly so that you don’t end up with too much left over currency when departing from India.

20. Is there a limit on the amount of local currency I can withdraw from ATMs in India each day?

Yes, the limit for daily ATM withdrawals in India varies from bank to bank. Typically, the maximum amount that can be withdrawn in a day ranges from Rs. 10,000 to Rs. 20,000. However, some banks may have a higher or lower limit. It is best to check with your specific bank for their ATM withdrawal limits in India. Additionally, many ATMs in tourist areas may have lower withdrawal limits for security reasons.