UK Currency Guide for Travellers - Money, Payments & Transfer

Planning a trip to the United Kingdom from India? Understanding the United Kingdom's currency system is crucial for Indian travellers. This comprehensive guide covers everything you need to know about money, payments, and transfers when visiting the UK from India.

Understanding the UK Currency System

The United Kingdom’s currency is the British Pound Sterling, commonly known as the pound. The currency symbol is £, and the ISO code is GBP (Great British Pound). The UK's currency has been the official monetary unit for centuries and remains significantly stronger than the Indian Rupee.

The pound sterling consists of 100 smaller units called pence. You'll encounter coins in denominations of 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2. Banknotes come in £5, £10, £20, and £50 denominations. One pound currently equals approximately ₹100-105, though rates fluctuate daily.

Current Exchange Rates: GBP to INR

For Indian travellers, the GBP-INR exchange rate is crucial for budget planning. Currently, 1 British Pound equals approximately ₹100-105. Please note that this rate fluctuates based on economic factors affecting both countries.

The United Kingdom’s currency typically maintains strength against the rupee. Political events, economic policies in both India and the UK, and global market conditions influence exchange rates. Brexit initially weakened the pound, but it has since recovered against most currencies, including the INR.

Check live rates on apps like XE, Google Pay, or banking apps before exchanging money. Avoid relying on airport or hotel rate boards, as these often show less favourable rates.

Best Places to Exchange INR for UK Currency

When travelling from India to the UK, getting the best exchange rate for your Indian Rupees (INR) can make a noticeable difference to your travel budget. You have several reliable options, both before you depart and after you arrive in the UK:

• In India – Authorised Currency Exchange Dealers
  
   

Reputed providers such as Thomas Cook, Cox & Kings, and UAE Exchange offer competitive rates and trustworthy services.

 

Many dealers allow you to book currency online in advance, which often results in better rates than walk-in transactions.

 

Several also provide home delivery of foreign currency, adding convenience and saving you time before your trip.

 

• In India – Major Banks
  
   

Central Indian banks like State Bank of India (SBI), HDFC Bank, ICICI Bank, and Axis Bank have dedicated foreign exchange counters.

 

You will need to carry mandatory documentation, including your passport, a valid visa, and a PAN card, for processing the exchange.

 

Some banks extend preferential exchange rates to premium or priority account holders, making it worth checking with your branch before visiting.

 

• In the UK – Currency Exchange Outlets
  
   

Avoid exchanging currency at airports unless necessary, as they tend to have significantly higher rates and fees.

 

High street currency exchange providers such as Travelex offer reasonable rates and are available in major cities.

 

Post offices across the UK also offer competitive exchange rates with the added benefit of convenient locations in both cities and small towns.

Using Indian Cards in the UK

Most Indian debit and credit cards work in the UK. Visa and Mastercard are widely accepted. However, RuPay cards may have limited acceptance outside India. Check with your bank about international usage before travelling.

Indian banks typically charge foreign transaction fees ranging from 2-4% plus GST. Cards like HDFC Bank ForexPlus, ICICI Bank Travel Card, or SBI International debit cards often provide better exchange rates and lower fees than regular cards.

Enable international usage on your cards before departure. Most banks require advance notification for overseas card usage. Use your bank's mobile app or visit a branch to activate international transactions.

Forex Cards vs Cash for Indian Travellers

Forex cards are popular among Indian travellers visiting the UK. These prepaid cards offer better exchange rates than credit cards and provide security against card theft. You can reload them online and track expenses through mobile apps.

Major providers include HDFC ForexPlus, ICICI Travel Card, Axis Bank Forex Card, and Thomas Cook BorderFree Card. Compare loading fees, transaction charges, and reload options before choosing.

Carry some cash for small expenses like tips, public transport, and small vendors. However, the UK is mainly cashless, so don't carry excessive amounts. A mix of a forex card and limited cash works best for Indian visitors.

ATM Usage and Charges for Indian Cards

UK ATMs widely accept Indian cards, but be aware of charges. Your Indian bank may charge ₹100-200 per transaction plus a percentage fee. UK banks might also impose charges for foreign card usage.

Look for fee-free ATMs operated by major banks like Barclays, HSBC, or Lloyds. Avoid standalone ATMs in convenience stores or pubs, as these often charge higher fees. Link ATMs (purple machines) are particularly expensive for foreign cards.

Withdraw larger amounts less frequently to minimise transaction fees. Most ATMs have daily withdrawal limits of £300-500. Plan your cash needs accordingly to avoid multiple withdrawal charges.

Digital Payments: UPI and International Cards

India's UPI system doesn't work in the UK. However, cards linked to Google Pay, Apple Pay, or Samsung Pay function if they're international cards. Your Indian credit or debit card must support contactless payments.

The UK extensively uses contactless payments. Most shops, restaurants, and transport systems accept tap-to-pay. The contactless limit is £100, higher than India's ₹5,000 limit.

Download apps like Revolut or Wise before travelling. These digital banks offer multi-currency accounts with competitive exchange rates. Some Indian travellers find them more convenient than traditional banking.

Money Transfer from India to the UK

Transferring money from India to the UK involves RBI regulations. Under the Liberalised Remittance Scheme (LRS), residents can send up to $250,000 per financial year for permitted purposes, including travel.

Popular services for India-UK transfers include Wise (formerly TransferWise), Remit2India, Western Union, and MoneyGram. Compare transfer fees, exchange rates, and delivery times. Wise often provides the most transparent pricing.

Traditional bank wire transfers through SBI, HDFC, or ICICI are secure but expensive. Processing takes 2-5 business days with higher fees compared to online services. Use this method for large amounts requiring maximum security.

Banking Options for Indian Students and Workers

Indian students in the UK should open local bank accounts soon after arrival. Major banks like Barclays, HSBC, Santander, and Lloyds offer student accounts with benefits like overdraft facilities and fee waivers.

Required documents typically include a passport, a visa, a university admission letter, and proof. Some banks initially accept Indian address proof, allowing account opening before finding UK accommodation.

For working professionals, salary accounts through employers simplify banking. Many companies have partnerships with specific banks, offering preferential terms for employees.

Understanding UK Costs from an Indian Perspective

The UK is significantly more expensive than India. A meal that costs ₹200-300 in India might cost £8-12 (₹800-1,200) in the UK. Budget accordingly and expect higher expenses across all categories.

London is particularly expensive. A cup of coffee costs £3-5 (₹300-500) compared to ₹50-100 in Indian metros. Accommodation, transport, and dining costs are substantially higher than Indian standards.

Northern England, Scotland, and Wales offer better value than London and southern England. Consider visiting these regions to stretch your budget further while experiencing diverse UK culture.

Tax and Pricing for Indian Visitors

UK prices include 20% VAT (Value Added Tax), unlike India, where GST is often shown separately. The displayed price is what you pay, making budgeting easier. Some items have reduced VAT rates or exemptions.

Tourist VAT refund schemes allow non-EU residents (including Indians) to claim VAT refunds on purchases above certain thresholds. Keep receipts and use refund services at airports or designated locations.

Service charges in restaurants are less standard than in India. Tipping 10-15% is appreciated but not mandatory. Unlike India, pub service doesn't expect tips, while table service restaurants appreciate gratuities.

Regional Currency Considerations

While the pound sterling is the official UK country currency throughout all regions, Scotland and Northern Ireland issue their own banknote designs. These are legal tender across the entire UK but may be unfamiliar to some businesses.

Scottish pounds feature different designs from Bank of England notes. Most businesses accept them without question, but some might hesitate due to unfamiliarity. This is more common outside Scotland.

For Indian travellers, these regional variations are enjoyable cultural experiences. All pound notes hold the same value regardless of their design or issuing bank.

Mobile Apps and Digital Tools for Indian Travellers

Download essential apps before departure. XE Currency provides live exchange rates and offline conversion. Banking apps from your Indian bank help monitor transactions and enable/disable international usage.

Google Pay works with international cards for contactless payments. Paytm and PhonePe don't function outside India. Consider downloading Revolut or Wise for multi-currency management.

Transport apps like Citymapper (London) or Trainline help navigate UK transport systems. Many accept Indian international cards for ticket purchases, often cheaper than buying at stations.

RBI Regulations and Compliance

Indian residents must comply with RBI regulations when carrying foreign currency. The current limit is $3,000 in cash or equivalent. Amounts above this require bank drafts or other instruments.

Declare amounts exceeding $5,000 or equivalent when leaving India. Keep exchange receipts as proof of legitimate currency acquisition. Customs or immigration authorities may require this documentation.

For amounts above $10,000, additional declarations may be required in the UK. Familiarise yourself with both Indian and UK customs regulations to avoid complications.

Insurance and Financial Safety

Travel insurance is crucial for Indian visitors to the UK. Medical expenses in the UK are incredibly high for non-residents. An introductory consultation can cost £100-200, while emergency treatment runs into thousands of pounds.

Choose insurance policies covering medical emergencies, trip cancellations, and lost luggage. Some Indian insurers, such as ICICI Lombard, Bajaj Allianz, and Tata AIG, offer comprehensive international travel insurance.

Keep emergency numbers handy, including your bank's international helpline. Most Indian banks provide 24/7 support for overseas customers. Save these numbers in multiple locations and devices.

Also Read : How Indians Can Reschedule Their US Visa Interviews 

End Note

Travelling to the UK from India is an exciting experience, but understanding the UK currency system, payment methods, and transfer options can help you manage your finances efficiently. From exchanging INR before departure to using digital payments on arrival, being prepared ensures you get the best value for your money. Always keep track of exchange rates, choose secure transfer methods, and carry a mix of cash and cards for flexibility.

To further protect your trip, consider comprehensive travel insurance that covers medical emergencies, trip cancellations, and lost baggage, giving you peace of mind while exploring the UK.

FAQs

What is the UK currency called?

The UK currency is the British Pound Sterling (GBP), symbolised by £.

Can I use Indian debit or credit cards in the UK?

Yes, Visa and Mastercard are widely accepted, but check with your bank for international usage activation.

Is cash or a card better for spending in the UK?

A combination of a forex card and limited cash works best, as the UK is largely cashless.