The Travellers Guide To ATMs in India

After travelling through India for a while and having to go through all the trials and tribulations of exchanging money, I googled this term to see if anyone had really written a comprehensive guide on the matter. Other than the same information you could get from Chat GPT, I couldn’t find anyone mentioning the on-the-ground information you need to know before you arrive. Things like which ATMs accept foreign cards? What are the charges? How to avoid those charges (as much as possible); and; which brand of ATMs are better and charge the least? In this guide, I will share exactly all of that with you. Despite a boring topic, it’s pretty useful if you’re staying here for a while.

Why trust me? I’ve lived in India as a foreigner for over a year now.

ATMs & Foreign Cards in India

Most ATMs in India accept foreign cards. Visa, Mastercard, and American Express are widely accepted. However, smaller co-operative banks like City Union and Bank of Maharashtra may not. But don’t worry, as these are rare and make up less than 0.1% of India’s ATMs.

Stick to major banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Axis Bank for secure and reliable transactions. They are widely available in urban areas, and you won’t have any issues finding an ATM in the big cities. When you’re planning for a trip to a more remote area, note that the ATMs can be scarce. Do your research well before heading there, like checking Google Maps for ATM locations in and around the area you’re planning to go to. If not, make sure to bring enough cash with you.

Lowest Fee ATMs in India

To Exchange Money At the Airport, Shop or just Withdraw?

The best way to withdraw cash is using an ATM with low fee charges. Something like an SBI ATM only charges RS100 ($1.5) for withdrawals, which is often less than you’ll find at any exchange or airport.

The easiest one would be exchanging your cash at the airport itself, as there are plenty of official reliable shops to do that. However, the exchange rates are very high, and you’d sometimes end up paying 10 – 15% more than you would at the exchange offices outside the airport.

Be careful when exchanging outside the airport, as scams are still a big problem in India, and you might end up paying more than you should.

A better place to exchange your foreign money would be authorized money exchangers – the ones approved by RBI. Because there are so many of these agencies all over India, they often offer great exchange rates due to competitiveness. Do make sure that you’re transacting with a licensed forex broker, they must have an AD-II and FFMC license.

Ask for proof of this at the exchange office, or check on Google ‘RBI-approved currency exchange near me’. Once at the office, check the exchange rate, and see what they offer. You can sometimes bargain a bit to make the rate better, however, this depends from place to place.

What Do I Do if The ATM Doesn’t Accept My Card?

I personally had to do the Western Union transfer while in Pakistan as none of the banks will accept foreign cards there at all. It was as simple as transferring myself some money to my own account from home. It’s a very simple process, you just set up a Western Union account and wire yourself some money from your home bank account to pick up at any local shop that offers their services.

It took around 1-2 hours to get my money from home using Western Union in my India to Pakistan trip.

Practical Ways To Avoid High Fees

We all want to get the most beneficial rates and pay as little fees as possible when getting that money out of the ATM machine. I’ve found some great ways to avoid those high fees and get your money in the cheapest way possible.

The ‘ATM Fee Saver’ App

Get your phone out, and download the app called ATM Fee Saver. It shows you all the ATMs near you, their withdrawal limits, and the amount of fees you’d have to pay to get your money out. It made my life much easier while travelling around, plus it saves you some of that hard-earned cash.

Get a Forex Card

Forex cards are an advantageous tool for international travel as they minimize the fees associated with foreign transactions. These cards are preloaded with foreign currency, eliminating the need for conversion during transactions and thereby avoiding currency conversion fees. By using a forex card, you can avoid the charges that are typically incurred with regular credit or debit card usage abroad, which makes them a cost-effective and convenient option for managing expenses while traveling internationally.

I haven’t had any issues, using my Wise card at the ATMs mentioned above. Some people also use Revolut (Harry, our site owner, does and says it works the same as Wise) and I’ve heard some great reviews about it, though I can’t say that I’ve used it personally.

While the Revolut card seems to work as well at most ATMs, some travellers have reported that Bank Of India doesn’t accept it, so look out for that one.

Avoid using Credit Card

Though credit cards with ‘no foreign transactions fees’ are increasingly common nowadays, do read the fine print. Some credit cards still charge about 3% or more on transactions made abroad.

Can Foreigners Get A Bank in India?

Yes, foreigners and tourists are allowed to get a bank account in India. Indian banks offer a Non Resident Ordinary Account for foreigners and tourists. This NRO Account is allowed to be used for a maximum of six months. It allows tourists to deposit funds from abroad through the banking channel or from the sale of foreign exchange brought to India. With an NRO account, tourists can make local payments, however, payments exceeding INR 50.000 ($599.59) must be made by cheques, pay orders, or demand drafts. When it’s time to leave India, tourists are permitted to transfer the balance available back into their original accounts.

To get an NRO account, you’d need to furnish some documents such as your passport, visa, and proof of accommodation. The KYC procedure is required to open an acount, which is similar to the process you must have completed to get your SIM card in India.

I’m highly unsure how beneficial this option is, as you’re only permitted to have the account for up to six months. Even without a local bank account, you can still use your own Visa card almost everywhere. Additionally, you’d have to pay taxes on the interest earned on deposits in an NRO account, as any income on it is taxable according to Indian tax laws. You’d have to pay TDS, or tax deducted at source, on that interest, which might add to the overall charges of using a local NRO account. Apart from the applicable surcharge and cess, the interest earned on income in an NRO account is taxable at a rate of 30%.

If you’re working remotely in India and want to open an Indian bank account to deposit your salary, it can result in some consequences, especially if your visa doesn’t allow it. If you’re working and earning on your tourist visa, it’s important not to have an Indian bank account, or at least not get paid on one. You can find more information on that on the digital nomad visa guide.

State Bank of India (SBI) is often praised for its extensive network, providing easy accessibility across the country. Their foreigner-friendly services, including the availability of English-speaking staff and user-friendly online banking platforms, make it a preferred choice. HDFC Bank is the next best option for foreigners, as they offer specific services for non-residents, various expat-specific banking solutions, convenient internet banking, and a range of international banking services. These banks often provide diverse banking products and services catered to the needs of expats, making them the go-to choices for many living and working in India.

Jytte Scheepens

Jytte is a 22-year-old female adventurer from The Netherlands. She loves to fully immerse herself in the local ways of living, going ‘off the beaten path’ to truly experience the countries she visits and their unique way of life. Her wanderlust has taken her to Asia, with a particular focus on India. Here you’ll find her writing about all things India and Asia with a focus on digital nomadding there.