Money in Calcutta

Money

The units of Indian currency are the rupee and the paisa (100 paise equal one rupee). Paper money comes in denominations of 1, 2, 5, 10, 20, 50, 100, and 500 rupees; a 1,000-rupee note may be available soon. Coins are in denominations of 5, 10, 20, 25, and 50 paise, one rupee, two rupees, and five rupees.

Changing Money

India has strict rules against importing or exporting its currency. International airports have currency-exchange booths that are always open for arriving or departing overseas flights. When you change money, remember to get a certain amount in small denominations. Also reject torn bills. Many merchants, hotels, and restaurants won't accept worn or tattered bills, and it's a hassle to go to a bank to get them exchanged.

Always change money from an authorized money-changer and insist on receiving an encashment slip. Some banks now charge a nominal fee for this slip, which is necessary if you plan to pay hotel bills or travel expenses in rupees. The encashment slip is also required if you need to reconvert rupees into your own currency at departure. Do not be lured by illegal street hawkers who offer you a higher exchange rate.

India's state-run banks can take forever to cash traveler's checks. Save time and use American Express Traveler's Service. Otherwise, cash the check at the foreign-exchange counter at your hotel. Rates will be slightly lower, but you will save irritation and time.

American Express (21 Old Court House St., tel. 33/248-4464); Thomas Cook (Chitrakoot Bldg., 230A A. J. C. Bose Rd., tel. 33/247-5378). You can also cash traveler's checks at these banks: Bank of America (8 India Exchange Pl., tel. 33/262352); Citibank (Tata Center, 43J. L. Nehru Rd., tel. 33/299220); ANZ Grindlays Bank (19 Netaji Subhas Rd., tel. 33/242-8346); and the State Bank of India (33 J. L. Nehru Rd., tel. 33/402430).

Costs

Calcutta is less expensive than most destinations when it comes to shopping, staying in budget Western-style hotels, and eating in independent restaurants. The increasing cost of gasoline has led to fare hikes of about 50% for trains, hired cars with drivers, taxis, and auto-rickshaws. These prices are still lower than those in many other world destinations. Rates for a hired car with driver, taxis, and auto-rickshaws also vary. Costs for deluxe hotels in Calcutta are skyrocketing. Many luxury hotels also have a dollar tariff rate for foreigners that is higher than the rupee tariff for Indian nationals.

A cup of tea from a stall costs about 10 cents. In luxury hotels, it can cost more than $1 before taxes. A chicken burger with french fries costs about $2 without taxes. A 650-ml bottle of beer costs $4 without taxes. A 5-kilometer (about 3-mile) taxi ride costs about $1.

Taxes

Airport

Visitors must pay an airport departure tax when they leave India. If you're heading for Bhutan, Nepal, Pakistan, or other neighboring countries, the tax is Rs. 150; for other international destinations the tax is Rs. 300.

Hotel

Hotels with double rooms that cost above Rs. 1,200 (about $35) per night levy a 10% expenditure tax on the room and food and beverage bills. Hoteliers are lobbying the government to abolish this tax, so it might be gone by the time you arrive. You should also expect an additional sales tax on food and beverages.