I'm planning a trip to India—should I rely more on cash or credit cards there?

In this series, the Dinogo Planet team addresses your travel queries and shares tips and tricks for a smooth journey. When it comes to questions about India, we knew that Mumbai-based editor Akanksha Singh would have valuable insights.

Question: I'm heading to India next month and have received mixed opinions on whether to carry cash or use a card. Are foreign credit cards widely accepted, or should I ensure I have cash? Additionally, is it better to bring US dollars or euros, or should I withdraw cash from ATMs?

Akanksha Singh: Handling money in India can be quite interesting. Not long ago, it was common for local shops to offer candies or gum when they couldn't provide the right change. A digital payment service called Paytm even created an advertisement based on this quirky 'sweet change' concept.

Nowadays, you’ll often encounter QR codes for cashless transactions with platforms like Paytm or Google Pay at street vendors, temples, and auto rickshaws. In Bengaluru, which is known as India's tech capital, you can even find roadside chai vendors accepting cryptocurrency.

In summary, your payment method in India will largely depend on your travel destination and what you hope to experience. Here are some factors to keep in mind as you prepare your trip.

Cash reigns supreme throughout the nation

Overall, opting for cash in India is usually a safe bet. Even with ongoing pushes for a 'cashless' society—especially during the pandemic—it's uncommon to find places that refuse cash payments.

If you intend to purchase cash at a currency exchange before heading to India, keep in mind that most foreign travelers are limited to bringing in ₹25,000 ($300) in cash.

Conversely, if you plan to exchange currency after arriving in India, steer clear of unofficial vendors outside the airport (as a rule, exchange rates at the airport are less favorable and come with higher fees). Instead, visit a recognized local bank; India’s central bank permits these institutions to legally buy or sell foreign currencies. HDFC Bank, Axis Bank, ICICI, and the State Bank of India handle various currencies and provide competitive rates.

You can also withdraw cash from ATMs using a foreign card. Most ATMs accept Visa and Mastercard, while some also support American Express and Diners Club. However, be cautious as ATM withdrawals often incur high fees and are subject to a variable daily limit set by local banks, typically around ₹10,000 ($120).

Larger cities provide more options for cashless payments

While cashless payment methods are available, they are generally confined to major cities. Additionally, these options can be unreliable due to frequently changing government regulations, which often frustrate travelers.

Most restaurants and bars tend to accept Visa and Mastercard over Amex and Diners Club. The acceptance of virtual cards is low, necessitating the use of a physical card. Furthermore, due to a stalemate between Apple and the Indian government, Apple Pay cannot be used.

Your Uber account from your home country should function smoothly in India; however, creating a new Uber account (or one with local competitor Ola) using an international card is not possible once you arrive. Similarly, online transactions with an international card can be unpredictable in India, including on platforms like Swiggy, Zomato, and Amazon.

For hassle-free travel, consider using a mix of travel cards, cash, and UPI options

The good news is that travelers can now make payments using UPI (India’s United Payments Interface), and several companies like Wise and Revolut provide travel cards that function in India with reduced transaction and withdrawal fees. (Keep in mind that you cannot hold rupees in your Revolut account, but you can spend them while in India.)

If you have some cash in addition to these options, you’re well-prepared.

In India, money isn’t everything

Generally speaking, Indians are incredibly generous (as an Indian, I can confidently say this!), and I've relied on the kindness of strangers here more times than I can count. There’s an entire culture and mindset that revolves around the belief that our financial exchanges are more than just transactions—they're fundamentally human interactions.

Just recently, I was out for a walk without any cash when a roadside florist insisted I take home some orchids I had complimented. 'Pay me back whenever,' the vendor said.

I repaid him the same day, but the key takeaway is that people here are kind and understanding regarding financial matters. Of course, I wouldn’t take anyone’s generosity for granted—however, don’t let limited payment options deter you from exploring all of India either.