An airport counter is the most expensive place in India to buy foreign currency, and it is not close. The reason is not greed exactly — it is that they have you. You are past security, you are two hours from a foreign country, and you are not going to walk out and compare. That position is worth 8 to 12% and they charge for it.
Putting a number on it
Take a family trip needing USD 4,000. At an interbank rate of 88, that currency is worth about ₹3,52,000. A dealing desk quoting 1% over interbank sells it at roughly 88.9 — around ₹3,55,600. An airport counter quoting 9% over sells it at about 95.9 — around ₹3,83,600.
The difference is ₹28,000. That is not a rounding error on a holiday budget; it is several nights of the hotel you are flying to.
Where the markup hides
- The rate itself. Most of it lives here, because most people compare the headline rate to nothing.
- A service charge, often flat, often ₹300 to ₹500, often not mentioned until the receipt.
- "Zero commission" signage. It means no separate commission line. The margin is inside the rate, where it is harder to see.
- Rounding, in the counter's favour, on both the rate and the total.
The three better options, ranked
- 1An authorised dealer booked online in advance. Rates closest to interbank, the quote is in writing before you commit, and the currency is delivered or collected on a date you choose.
- 2Your own bank. More expensive than a dealer, typically 1.5 to 2% over, but familiar and already holding your KYC.
- 3A city money changer. Fine for small amounts and last-minute needs. Ask for the all-in rupee total, not the rate.
The one question that cuts through all of it: "what is the total rupee amount I pay, including every charge and tax, for exactly this much currency?" A dealer confident in their pricing answers that in one number. Anywhere that will not is telling you something.
If you are already at the airport
- Buy only what you need for the first day — airport transfer, a meal. Not the trip.
- Withdraw the rest from an ATM at your destination, or use a forex card if you have one.
- Never accept "pay in rupees" on a foreign card terminal. That is dynamic currency conversion and it is a second markup on top of the first.
