Changing Your Money...

When changing money at a bank you'll need the patience of a saint and the paperwork skills of a ledger clerk, especially in smaller towns. The secret is to change money in large amounts as infrequently as possible and preferably in big banks in big cities. You are supposed to be given an encashment certificate when you change money at a bank or an official moneychanger. Some hotels insist you show an encashment certificate before accepting payment in Indian rupees. If you stay in India more than four months, you'll need to keep a handful of these certificates to get income tax clearance.

Credit cards are widely accepted in Indian cities and larger towns, particularly American Express, Diners Club, MasterCard and Visa. Credit cards can also be used to get cash advances in rupees. The Bank of Baroda seems to be the most efficient bank at handling such transactions. A growing number of large cities and towns have ATMs that accept Cirrus, Maestro, Mastercard and Visa.