Paying, ATMs & Tipping

For background on the currency itself, see Currency & Digital Payments. This page covers the practical side: getting cash, paying, and tipping.

ATMs and cards

ATMs are widely available in cities and larger towns. Most accept foreign Visa/Mastercard-network cards (both debit and credit). Few points:

  • Per-transaction limits: typically ₹10,000-₹20,000 per withdrawal. No ATM limit ontransactions per day, except your card's daily limit.
  • Fees: Public-sector bank ATMs don't charge foreign cardholders directly. Private banks commonly charge ₹200-₹335 per transaction. Your home bank is likely to charge a foreign transaction fee (1-3%). Check before you travel.
  • Dynamic currency conversion: Some ATMs ask to "accept" or "decline" conversion to your home currency. Always decline. Conversion gives you a raw deal on the exchange rate.
  • Most establishments in cities accept cards. Smaller vendors, street food stalls, local transport and rural areas prefer UPI or cash.
  • UPI (see this for details) is how Indians transact today. Now with UPI One World, a pre-paid INR wallet, a visitor can load up to ₹50,000 at a time. No need for a bank account or an Indian phone. I recommend it if you can get it set up on arrival (mainly at major airports for now).
  • One thing to keep in mind: cash from ATMs is mostly in ₹500 denominations, so Indians hoard small change. ₹20, ₹50, ₹100 notes are precious. You should hoard them too, because it is hard to get smaller denominations. If you are carrying cash mainly, use and get change for 500s whenever you get a chance.

Tipping

Tipping isn't mandatory, but people expect and appreciate it.

  • Restaurants: 10% is typical if no service charge is in the bill. Most restaurants in cities add one automatically. You can choose to tip on top of it too, though not expected.
  • Hotels: roughly ₹100 per person per night is reasonable. Smaller amounts (₹50-100) for bellhops per bag. Daily tips for housekeeping are better than a lump sum at checkout, since the staff rotate.
  • Drivers: ₹400-600 for a full day. Sometimes included in the bill as driver bata; then don't pay. For a short transfer, a smaller amount, but strictly not expected.
  • Guides: Private full-day guides charge ₹500-1,000. For group tours ₹200-300 per person is reasonable.

Tips are preferred in cash. They will also accept UPI payments if you can.

Bargaining

Used to be the norm earlier. Now not true. In street markets, you can still hone your haggling skills. Local transport used to need haggling, but with Uber, Ola and other intermediaries this is no more needed. On a group tour, if your driver stops at a specific shop, expect to pay a little more than market. Here you can get away with some bargaining.