Exchange Currency in India - Must Read Before Traveling

Currency exchange is known to be key in helping to establish international trade and travels as well as investments. Exchange currency is an inseparable part of the life of a modern country with a developed economy and really great international relations as it is about India. The currency exchange situation in India has witnessed numerous changes throughout the years, as different regulations and reforms found their way into the system and influenced the manner in which transactions are being carried out.

This article aims to provide information about exchange currency in India, covering its history, regulatory framework, major players, challenges, and future prospects.

Back To The History

History of currency in India is very old as the trade routes linked the Indian subcontinent with other regions of the world in the ancient times. Transactions were carried out using coins of various civilizations including Roman, Greek and Persian civilizations thus India was a land of mixed currencies.

The monetary system of India changed a lot in the modern age, especially under the British colonial regime. The British made rupee the official currency and the Indian currency was pegged on the British pound. But India got its freedom in 1947, and this nation started to produce its own money, which is Indian Rupee (INR). Since this period, the Reserve Bank of India (RBI) has been issuing and regulating the INR.

The Advent of the Rupee

The term "rupee" has its roots in the Sanskrit word "rūpyakam," which means "a silver coin." The use of the term "rupee" for currency in India can be traced back to the Sultanate of Delhi (13th-16th century) when the silver coin called "Rupiya" was first introduced. The Mughal Empire, which succeeded the Sultanate, further popularized the rupee as the dominant currency in India.

The British colonial rule saw the formal introduction of Indian rupee in 1835 by the British East India Company, as the common currency formula throughout the regions that it controlled. The rupee was linked to the British pound, after gold standard, and was linked to the global monetary system.

The currency in India

Currency Exchange in India and Security Features

Currency Denominations

The Indian rupee is available in various denominations of banknotes and coins, catering to the diverse needs of the population. The Indian currency denominations included:

• Banknotes: ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2,000

• Coins: ₹1, ₹2, ₹5, and ₹10

Additionally, coins of smaller denominations, such as 50 paise (₹0.50) and 25 paise (₹0.25), were available but have become less commonly used due to inflation.

To curb counterfeiting of the Indian currency notes, several security features are embedded on the notes to make them authentic. These are watermarks, security threads, latent images, micro-lettering and color changing ink among others. These security features are constantly being improved by the RBI to keep abreast of the counterfeiters to ensure that people have continued trust in the currency.

Exchange rate in India

Exchange rate in India are determined by the exchange market, where currencies are sold & bought. The exchange rate indicates the value of one currency in terms of another currency. For instance, if the exchange rate between the US Dollar to Indian Rupee is: 1 USD = 82.30 INR, it means that 1 US Dollar can be exchanged for 82.30 Indian Rupees (According to August 2023).

Travelers must exchange your currency before traveling to India

Exchange Currency in India Information For Travelers

How to exchange foreign currency in India?

Exchanging foreign currency in India is a straightforward process, and there are several authorized entities that can assist you with the currency exchange. The Indian Rupee (INR) is the valid currency today and it varies differently against other leading currencies on a daily basis. 

Currency exchange services are provided throughout the country by different authorized persons including banks, authorized dealers and licensed money changers. In India, one will be required to produce original identification documents to exchange foreign currency, know the current exchange rate, and select a reliable authorized dealer. 

As the country continues to pursue the idea of digitalization, online platforms and mobile applications are emerging as viable alternatives to exchange currencies, too. Be it travelling, trade or investment, foreign currency exchange in India is a simple yet necessary procedure that assists in the flow of international financial transactions.

Where to exchange foreign currency in India?

In India, foreign currency can be exchanged at designated authorized entities that are under the control of Reserve Bank of India (RBI). The following are some of the typical locations in India to change money:

• Banks

Currency exchange is provided by most of the major banks in India. To purchase foreign currency you can go to any branch of the banks which is authorized by RBI to carry out foreign exchange transaction. Banks are regarded to be secure and trusted in exchanging the currency and usually offer a large variety of foreign currencies.

• Authorized Dealers (ADs)

In addition to the banks, non-banking financial institutions authorized by the RBI to undertake currency exchange are called authorized dealers (ADs). Such organizations are the currency exchange agencies and other financial bodies.

• Airport Exchange Counters

You can exchange foreign currency at the currency exchange counters found in international airports in India. These exchange counters can be found by travelers coming to or going out of India, although they need to know that they might be subjected to higher service charges, and not so good exchange rates as compared to other alternatives.

• Money Changers

The RBI has licensed money changers to provide foreign currency exchange services. They commonly exist at tourist attractions, business districts, and shopping centers. Money changers can give good rates as well as it can be a convenient way to change the money.

• Online Platforms

In India, there are a number of online platforms and mobile applications that provide currency exchange services with the increase of digitalization. These services enable you to trade currency online and some of them might even provide you with good rates and additional convenience.

• Prepaid Travel Cards (Forex Cards)

Prepaid travel cards, also known as forex cards, are available at banks and authorised dealers. These are cards that are loaded with foreign currency and can be used in making transactions in other countries. Forex cards are safe and very convenient, particularly to travellers.

There are many options for you to exchange currency in India

Which bank is best for currency exchange in India?

The exchange currency in India rates might change every day and it might also vary across the banks due to service charges, fees, and the foreign exchange market situation. But in India, a few banks are the major banks, which are well-established and reputable as far as currency exchange facilities are concerned. Some of these banks include:

• State Bank of India (SBI): SBI is the largest and one of the most trusted banks in India. They offer currency exchange services at various branches and have a significant presence across the country.

• HDFC Bank: HDFC Bank is one of India's leading private sector banks and provides currency exchange services for a wide range of foreign currencies.

• ICICI Bank: ICICI Bank is another prominent private sector bank in India, offering currency exchange services for travelers and businesses.

Travel to India - Visa Is Necessary

Before traveling, besides exchange currency in India, travelers must remember that a visa is required when visiting India. Let’s apply for an India visa right away and prepare to visit this country in a few days. Checking your eligibility to make sure that you are qualified for an e-visa is the first thing you need to do. 

If you have any questions, please contact us by completing the form or directly call us at +1 949 346 9868 for more information about visa procedures, add-on services or India status.