Money Matters
CURRENCY:
The rupee (Rs) is divided into 100 paise (p). The paise comes in coin denominations of 5, 10, 20 (all no longer being issued) 25 and 50. There are also rare rupee coins in denominations of one, two and five.
Rupee notes come in denominations of 10, 20, 50, 100 and 500. In 1996 the Reserve Bank of India decided to stop printing INR1.00, INR2.00 and INR5.00 notes, but there is still a sprinkling of these in circulation. There is a INR1000.00 note but this is quite rare.
You may occasionally find that when you try to pay for something with a ripped or grubby note that your money is refused. You can change old notes for new ones at most banks or save them and use them creatively as tips. Don't let shopkeepers palm grubby notes off on you as change – simply hand them back and you'll usually be given a note slightly higher up the acceptability scale. Keep a supply of smaller denomination notes – there is a perpetual shortage of small change.
You are not allowed to bring Indian currency into the country, or take it with you when you leave. The rupee is fully convertible so there's not much of a black market, even though you'll constantly be haunted by offers to 'change money'. In cities you can change most major foreign currencies and brands of travelers’ checks - but you'll widen your options and save yourself hassles if you stick to U.S. dollars or travelers checks. In fact, it's wise to bring a couple of different brands of checks in different currencies since some branches of some banks have particular idiosyncrasies, such as refusing to handle X-brand of travelers' checks.
In preparation for your journey, you may want to calculate the exchange rate from the U.S. dollar to local currencies. There are many websites that offer a conversion engine. You can also check the Wall Street Journal for currency rate information.
http://www.oanda.com/convert/classic
CREDIT CARDS AND ATMS:
American Express, MasterCard, Visa and Diners Club are generally accepted by large establishments. However, it is advisable to carry some cash or travelers checks in U.S. Dollars for purchases outside urban areas, and tipping. Surprisingly, ATMs are common (especially in the cities). Local banks will give you notes in local currency. Keep your traveler’s checks on you, along with other valuables, including passport, credit cards, or lock in the safety deposit boxes when provided. Cash works well in the marketplaces and with vendors along the road, where bargaining is expected.
TIPPING:
Tips for hotel and lodge personnel are usually included in your tour price. Tips to your driver and naturalist guides are at your discretion. A suggested detailed tipping chart will be sent to you with your final documents prior to departure.
Generally, for services not included in your program, tipping is virtually unknown in India, except in high-end establishments in the major cities. Baksheesh, on the other hand, is a term which encompasses tipping and a lot more besides, and is widespread. You 'tip' in India not so much for good service but in order to get things done. Judicious baksheesh will open closed doors, find missing letters and perform other small miracles. In smaller places, where tipping is optional, you need only tip a few rupees, not a percentage of your bill.
SHOPPING:
India is a shopper's paradise. Of particular interest are carpets, handicrafts, jewelry, ready-made garments and leather goods. It's best to buy goods only from the more established shops and official Indian government outlets. Do visit the local bazaars, however, for interesting bargains.
A note of warning: If you intend to ship any of your purchases back home to the United States from your journey, it is highly recommended that you negotiate the shipping charges with the local vendor/mailing service on premises ahead of time. Do not be sadly surprised when your shipment arrives in the U.S. with a large cost attached as sometimes shipping charges can cost more than the actual item. Save yourself a headache (and a hit to your wallet) and negotiate these charges when you send off your prized purchases.
DEPARTURE TAXES:
You will have to pay a departure tax of Rs 300 in local currency when you depart India. This must be paid in cash and using local currency, so make sure you have this amount set aside.