Introduction
Let’s be real—figuring out how to handle money in Nepal and India can feel overwhelming before your first trip to South Asia. Trust me, I’ve been there, staring at my banking app at 2 AM trying to figure out if I should just stuff my pockets with cash or go all-in on cards.
Here’s the thing: the best way to handle money in Nepal and India isn’t a one-size-fits-all answer. It’s actually a smart combination that’ll save you hundreds in fees while keeping you prepared for every situation. Whether you’re trekking to Everest Base Camp, exploring Delhi’s street markets, or bouncing between ashrams in Rishikesh, you need a strategy that works in chaotic cities and remote mountain villages alike.
In this guide, I’m breaking down exactly what works (and what doesn’t) when it comes to managing your travel funds across these two incredible countries. We’ll talk real numbers, actual fees, and the mistakes most travelers make—so you don’t have to.
Understanding the Money Landscape in Nepal and India
Before we dive into which payment method wins, you need to understand what you’re working with in these countries.
Cash Is Still King (But Not the Emperor)
India’s pushing hard toward digital payments—you’ll see QR codes everywhere from rickshaw drivers to street food vendors. UPI (Unified Payments Interface) has revolutionized how locals pay for things. But here’s what matters to you as a foreign traveler: you can’t access UPI without an Indian bank account and phone number.
Nepal’s a different story. Cash dominates, especially once you leave Kathmandu or Pokhara. Sure, bigger hotels and restaurants in tourist areas take cards, but that family-run guesthouse in Bandipur? Cash only, my friend.
The ATM Situation
Both countries have decent ATM coverage in cities. You’ll find machines from State Bank of India, ICICI, HDFC in India, and Nepal Bank, Himalayan Bank in Nepal. But—and this is important—withdrawal limits are usually around ₹10,000 ($120 USD) per transaction in India and NPR 35,000 ($260 USD) in Nepal. ATM fees? Expect 200-500 rupees per withdrawal, sometimes more if you’re using international networks.
Cash: The Reliable Backup You Actually Need
Let’s talk about cold, hard cash and when it makes sense to carry it.
When Cash Saves the Day
You absolutely need cash for:
- Local transport (buses, shared jeeps, motorcycle taxis)
- Street food and small restaurants
- Temple donations and entrance fees at smaller sites
- Trekking permits in remote areas
- Bargaining at markets (vendors often give better prices for cash)
- Emergency situations when cards fail
I’d recommend carrying about $200-300 in cash as a backup, split between USD and local currency. USD still works as a backup in tourist areas, though you’ll get terrible exchange rates.
The Cash Conversion Strategy
Here’s what works: Don’t exchange everything at the airport. Those rates are awful. Instead, exchange just enough to get you to your hotel—maybe $50-100. Then use local money changers or bank-affiliated exchange counters in the city. In India, you’ll find authorized dealers with better rates. In Nepal, Thamel in Kathmandu has competitive exchange spots, but check rates at a few places.
Pro tip: Keep small denominations. A 500 rupee note might as well be a million when you’re trying to buy chai from a street vendor. They often don’t have change.
The Downsides Nobody Talks About
Carrying lots of cash means:
- Security concerns (though both countries are generally safe, theft happens)
- No recourse if it’s lost or stolen
- The mental math of constantly converting currencies
- Running out at inconvenient times
Credit Cards: Convenient But Costly
Credit cards work brilliantly in cities and tourist hotspots. But should they be your primary payment method? Let’s break it down.
Where Cards Actually Work Well
Use your credit card for:
- Hotel bookings and nicer accommodations
- Flight bookings and train tickets online
- Restaurants in cities and tourist areas
- Shopping at established stores and malls
- Rental car bookings
Visa and Mastercard are widely accepted. American Express? Pretty limited outside five-star hotels.
The Fee Trap
Here’s where travelers lose money: foreign transaction fees. Most standard credit cards charge 2.5-3% on every purchase abroad. That adds up fast. If you’re spending $2,000 on your trip, you’re throwing away $50-75 in fees alone.
Some cards don’t charge foreign transaction fees—Capital One, Chase Sapphire cards, and certain travel credit cards. If you travel regularly, getting one of these before your trip is worth it.
Dynamic Currency Conversion: Just Say No
When paying by card, the terminal might ask if you want to pay in your home currency. Always choose local currency (INR or NPR). Paying in your home currency means the merchant’s bank does the conversion at terrible rates, adding 3-7% to your cost. Your bank’s conversion rate is almost always better.
Travel Cards: The Smart Money Move
This is where things get interesting. Travel cards—specifically multi-currency travel cards—might be your best option for the best way to handle money in Nepal and India.
What Makes Travel Cards Different
Travel cards are prepaid cards you load with currency before traveling. Think of them as a debit card that’s designed for international use. Popular options include Wise (formerly TransferWise), Revolut, and traditional travel money cards from companies like Travelex.
The advantage? Much better exchange rates and lower (sometimes zero) ATM fees.
Why Wise and Revolut Win
I’ve used both extensively, and here’s why they work so well:
Wise gives you the actual mid-market exchange rate—the rate you see on Google. No markup. You can hold money in 50+ currencies, including USD, EUR, GBP. You can’t hold NPR or INR directly, but the card converts at great rates when you use it.
Revolut offers similar benefits, plus you get some free ATM withdrawals each month (amount varies by plan). After that, there’s a 2% fee on withdrawals.
Both cards work at most ATMs in India and Nepal that accept international cards. And both have apps that let you track spending in real-time, which is super helpful for budgeting.
The Practical Approach
Here’s my tested strategy: Load your Wise or Revolut card with most of your travel budget. Use it for ATM withdrawals and card payments. Keep one regular credit card as backup. Carry some emergency cash.
This approach gives you:
- Best exchange rates (saves you 3-5% compared to regular cards)
- Lower ATM fees
- Budget tracking
- Security (if lost, you can freeze it instantly via app)
- Backup options if one payment method fails
The Limitations to Know
Travel cards aren’t perfect:
- You need to plan ahead and order the card before your trip
- Some remote ATMs might not accept them
- If you run out of loaded funds, you need internet to reload (though mobile data is cheap in both countries)
Creating Your Personal Money Strategy
Okay, so what’s the actual best way to handle money in Nepal and India for your specific trip? Let’s build a strategy.
For City and Popular Route Travelers
If you’re sticking to Delhi, Agra, Jaipur, Mumbai, Kathmandu, and Pokhara—the main tourist circuit—you can lean heavily on cards:
- Primary: Travel card (Wise/Revolut) – 70% of budget
- Secondary: No-foreign-fee credit card – 20% of budget
- Cash backup: $200 – 10% of budget
For Trekkers and Off-the-Beaten-Path Explorers
Planning to trek in the Himalayas or explore rural areas? Cash becomes more important:
- Primary: Cash (mix of USD and local currency) – 50% of budget
- Secondary: Travel card for city ATM withdrawals – 40% of budget
- Backup: Credit card – 10% of budget
For Long-Term Travelers (2+ Months)
You’ll want maximum flexibility:
- Travel card as primary payment method
- Local bank account if staying 3+ months (seriously consider this in India)
- Credit card backup
- Modest cash reserves
Safety Tips You Actually Need
Split your money across different locations—hotel safe, money belt, day bag. Don’t keep everything together. Take photos of your cards and keep them in cloud storage. Write down emergency numbers for blocking cards.
Use ATMs during daytime at banks or inside secure locations. Those standalone ATMs on dark streets? Skip them.
Real Numbers: What You’ll Actually Spend
Let me give you context for budgeting.
Budget Travel: $30-50/day (hostels, street food, local transport) Mid-Range: $75-125/day (decent hotels, mix of restaurants, some tours) Comfort Travel: $150-250+/day (nice hotels, air-conditioned transport, guided experiences)
Nepal’s generally cheaper than India, especially for accommodation. But Kathmandu prices approach Indian metro city levels.
Most places round up bills. A 347 rupee restaurant bill becomes 350. It’s normal—don’t stress about it.
Common Money Mistakes (And How to Avoid Them)
Mistake #1: Relying entirely on one payment method. Cards fail, ATMs run out of cash, systems go down. Diversity is your friend.
Mistake #2: Not notifying your bank before traveling. Your card might get blocked for suspicious activity if your bank suddenly sees charges from Kathmandu.
Mistake #3: Accepting the first exchange rate you see. Rates vary significantly between providers.
Mistake #4: Withdrawing small amounts frequently. Each ATM transaction costs you fees. Withdraw larger amounts less often (when safe to do so).
Mistake #5: Forgetting about Nepal’s import rules. You can only bring 25,000 NPR into Nepal. Exchange Indian rupees at the border or in Kathmandu.
Frequently Asked Questions
Q: Can I use Indian Rupees in Nepal? A: Technically, INR 100 notes are accepted in Nepal, but it’s illegal and rates aren’t great. Better to exchange for NPR in Kathmandu. You definitely can’t use NPR in India.
Q: Should I exchange money before leaving home? A: Generally no. Rates at home (UK/US/Australia) are usually worse than what you’ll get in India or Nepal. Exception: if you arrive late at night and won’t have ATM access, exchange enough for transport and first night.
Q: Are mobile payment apps like Venmo useful? A: Not really. Indians use UPI and Paytm, which require local bank accounts. Nepal’s even less digital. Stick with cards and cash.
Q: What if my card gets skimmed? A: Use ATMs at bank branches, cover the PIN pad, check for anything unusual on the card slot. With travel cards like Wise, you can instantly freeze and unfreeze your card via the app. Monitor transactions daily.
Q: How much cash should I carry daily? A: Depends on your plans, but I usually carry 2,000-3,000 rupees ($25-35) for daily expenses. Enough for meals, transport, and small purchases, but not so much that losing it would ruin your day.
Conclusion: Your Money Game Plan
So what’s the verdict on the best way to handle money in Nepal and India? It’s a balanced approach that gives you flexibility and saves you money.
Get a travel card (Wise or Revolut) as your primary tool—you’ll save significantly on fees and exchange rates. Back it up with a no-foreign-transaction-fee credit card for larger purchases and emergencies. And yes, carry some good old-fashioned cash for the inevitable moments when technology fails or you’re bargaining for handmade pashmina in a Kathmandu alley.
The bottom line? Don’t overthink it, but do plan ahead. Order your travel card two weeks before departure. Notify your banks. Download offline maps and keep emergency numbers handy. Then relax and enjoy two of the most incredible countries on Earth.
Your adventure awaits—and now your money’s ready for it too. Safe travels, and may all your ATMs have cash when you need them!
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