Tips on Changing Money in India for Foreign Tourists

It's best to change money only at banks and authorized foreign exchange ("forex") agencies. They will give you an encashment certificate to prove that you have changed money legally. You should keep these-along with any ATM receipts-because you may need them from time to time. There are instances where foreigners are expected to pay in foreign currency, but if you have the exchange receipts, you can use rupees. 

The other reason to, deal with banks and authorized forex agents is that counterfeiting has become fairly common in India. Changing money unofficially is risky. If you somehow do get any counterfeit notes, having sufficient receipts to account for all the rupees in your possession is essential. 

Changing money at a bank-especially the government-run ones like State Bank of India-can sometimes take as much as an hour or two, so don't rush in right before their lunch break or at closing time.

Banknotes are commonly stapled together in bundles of 100 with a signed and sealed piece of paper that certifies the amount and the number of banknotes stapled onto the bundle. The bundles usually have several staples, which can really be a pain to remove without tearing the banknotes. There is an art to doing this, so have someone show you, or else get a staple remover. 

Always count your money before leaving the counter. If you get a stapled bundle with the stamped paper missing, you should definitely count it because someone could have removed some notes and simply restapled the bundle. Sometimes a clerk will hand you a pile of notes that is less than the correct amount. Usually the rest will be forthcoming if you just wait patiently, but occasionally you have to point out the error. Do it politely without making accusations. Always assume it's an honest error, which it may well be. The same goes for shops, hotels, restaurants, etc. 

Most people will not accept torn banknotes, even if they have been repaired with tape, so try not to accept them. Even a tiny tear is unacceptable to many people. You can change old notes for new ones at most banks, but it's scarcely worth the effort, It is advisable to take assistance from a local tour operators to guide you to the right bank and the procedures, Swan Tours Delhi India is one of the most reliable tour operators in India.

In small towns, Rs.500 and Rs.1,000 notes can be hard to spend, either because no one has change for them or because merchants are worried that they could be counterfeit—which they sometimes are—so it is often better to have smaller denominations, anyway. Ask someone at the bank or to show you the security features of the various notes so you know what to look for. Counterfeiters have managed to replicate virtually all the features, so the government is planning to introduce polymer currency notes, which are considerably harder to duplicate. Always check Rs.1,000 and Rs.500 notes for obvious defects when you get them. 

If you are going to a remote area, you may have to rely exclusively on cash for all your needs. If you can't find out in advance what resources are available before you go, assume the worst and take quite a bit more cash than you expect to need—but not too many big bills, especially Rs.1,000 notes. Note that most rural banks have no foreign exchange facilities, their ATMs may not be international ATMs, and it may be difficult to get a bank wire sent to them within any reasonable amount of time. You wouldn't want to have to travel several hours to get money, especially if you're faced with an emergency. In the cities, it's easy to find an international ATM. 

Credit cards are often accepted in major shops, hotels and restaurants in Indian cities and larger towns, but are of no use in more remote areas. Also, merchants add as much as 7% service charge. In many places, you can also get cash advances (in rupees) from your MasterCard, Visa, American Express or Diners Club card, again with a substantial commission tacked on. If you bring more than one credit card, keep the second one in a safe place separate from the one you are using. 

Don't forget to tell your bank and credit card companies that you are coming to India. If you neglect to do this, you will have access problems. Keep the phone numbers and account numbers in a safe place separate from the cards in case of loss. 

For more information on India tour packages contact Swan Tours, one of the leading tour operators in Delhi.