Best ways to spend travel money in India: Debit and prepaid cards

You’ll be able to spend on your credit or debit card in many places in India and banks and ATMs are widely available, even in smaller villages. That said, plastic won’t be accepted everywhere so it’s wise to also take some cash with you. This will also come in handy for taxi fares and markets.

Low–cost travel money options for India

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UK debit cards

Using a debit card is a quick and convenient way to pay for purchases in shops and restaurants. It also gives you the option of being able to withdraw cash whenever you need it. However, you’ll need to watch out for foreign usage fees.

Many debit cards will charge a foreign transaction fee of between 2.75% and 2.99% every time you make a purchase. If you withdraw cash, a further fee of around 2–2.75% will be charged on top. That means if you withdrew £100, you could be charged around £5.74 (£2.99 + £2.75).

For this reason, you should look for a debit card that won’t charge foreign usage fees.

Prepaid travel cards

Prepaid travel cards can be loaded with foreign currency before you set off on holiday, letting you lock in a set exchange rate. Unfortunately, not many prepaid cards allow you to preload Indian rupees.

Another option is to load your prepaid card with pounds and this will then be exchanged into rupees when you spend. Prepaid card providers use the interbank exchange rate or Mastercard or Visa’s exchange rate. In some cases, they might apply a fee on top.

Prepaid travel cards can be a good option for budgeting as you can only spend what’s on the card. You’ll need to top up again if you need more funds.

Credit cards

A credit card can also be a convenient way to pay in shops and restaurants. Plus, all purchases costing more than £100 and up to £30,000 will be protected under Section 75 of the Consumer Credit Act.

The downside is that you may have to pay interest if you don’t clear your balance each month and foreign usage fees can be high. You may have to pay a fee of around 2.99% for foreign transactions and if you withdraw cash, a further cash advance fee will apply. This means it’s best to look for a credit card that won’t charge these fees.

That said, it’s best not to use your credit card for cash withdrawals at all, even if it doesn’t charge a fee. That’s because interest will be charged from the date of the transaction, even if you pay off your balance in full that month.

Traveller’s cheques

Traveller’s cheques are no longer as popular as they once were, but you can still use them in India. However, you’ll need to watch out for high fees for cashing them in, so make sure you shop around and compare options.

How many rupees do I need to bring to India?

High season premiums will add to the cost of your Indian summer, but the cost of living and travel varies depending on where you are in the country. Off-season, prices drop dramatically.

Find out some typical prices in New Delhi, India

	Budget	Mid-range	Expensive
	Hostel or dorm £10–£15 per night	3-star hotel in New Delhi £20–£55 per night	5-star hotel in New Delhi £70–£200+
	Pani puri (street food) 50p	Dinner for 2 at a casual restaurant £10–£15	Fine dining £7–£15 per dish
	Explore markets for free!	Visit the Red Fort 70p per person	Day trip to the Taj Mahal £20–£40

_{*Prices are for example purposes only.}

Exchange rate history (GBP to INR)

_{*2024 rate is the average up to 18 April 2024.}

Bottom line

There are a number of different options to explore when thinking about how to spend in India, so you’ll need to consider which option is most convenient for you. If you’d prefer to stick to a budget, you might prefer a prepaid card. But if you’re happy to go with the flow, you might prefer a debit or credit card. Whichever option you choose, try to find one that charges low or no foreign usage fees and make sure you also take some cash with you so that you’re covered for all events.

• What does dynamic currency conversion mean?

  Dynamic currency conversion is when a retailer converts your purchase into pounds sterling rather than keeping it in the local currency. When this happens, the retailer will offer a poorer exchange rate and you’ll pay more than you should for your purchase. If you’re given the option of paying in the local currency or pounds sterling, always choose the local currency.

• What is the Indian currency?

  The official currency of India is the Indian rupee. 1 rupee consists of 100 paisa. Banknotes are issued in the denomination of 10, 20, 50, 100, 200, 500 and 2,000 and coins are in denominations of 1, 2, 5, 10 and 20 rupees.

Written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio