What denominations of Korean Won are accepted for exchange in India?

Summary: Understanding Korean Won Exchange in India—Practical Realities, Regulatory Insights, and Actual Experience

If you’re traveling from South Korea to India and hoping to exchange your Korean Won (KRW) for Indian Rupees (INR), you might assume it’s as simple as walking into any Indian bank or currency exchange counter. But the reality is far more nuanced—denomination restrictions, RBI guidelines, and practical hurdles all play a role. This article dives into which denominations of Korean Won are actually accepted for exchange in India, why not all notes are treated equally, and what you really need to know before you attempt to swap your KRW for INR. Featuring hands-on experience, regulatory citations, and a comparison of international “verified trade” standards, this is your no-nonsense guide to navigating the cross-border exchange process.

My Firsthand Experience: It’s Not Just About the Notes, It’s About the Rules

A few months ago, after a work trip to Seoul, I landed in Mumbai with a tidy bundle of Korean Won in my wallet—ranging from neat 1,000 KRW notes to the chunky 50,000 KRW bills. “No problem,” I thought, “I’ll just swap them at the airport currency counter.” But the reality? Not all denominations were accepted, and the process was more complicated than I imagined.

The first (and only) counter at the airport glanced at my crisp 1,000 KRW and 5,000 KRW notes, then politely declined. They’d only take 10,000 KRW and 50,000 KRW notes. Was this just a one-off or a broader trend? Over the next week, I tried several currency exchange offices in Mumbai and Delhi, and the story was the same every time: larger denominations only. One bank employee explained, “Smaller notes are hard to verify and have less demand. Most Indian banks and licensed money changers stick to the high-value notes.”

Regulatory Backdrop: What Do Indian Rules Actually Say?

According to Reserve Bank of India (RBI) guidelines, currency exchange in India falls under the Foreign Exchange Management Act (FEMA), 1999. The act itself doesn’t list specific denominations, but empowers Authorized Dealers (AD Category-II) and Full-Fledged Money Changers (FFMCs) to decide which foreign currencies and denominations they will accept, depending on their ability to verify authenticity and market demand.

The Master Direction on Money Changing Activities, RBI, 2023 clarifies that licensed entities can set their own operational policies on note acceptance, provided records are maintained and KYC norms are followed.

There’s no official RBI list specifying “You can only exchange 10,000 KRW and above,” but in practice, as confirmed by multiple FFMCs (including Thomas Cook India and Centrum Direct), only 10,000 and 50,000 KRW notes are routinely accepted. Lower denominations (1,000 or 5,000 KRW) are usually rejected due to:

• Difficulty in verifying small notes (higher risk of counterfeiting)
• Limited local demand for small denominations
• Operational inconvenience (sorting, storage, shipment)

I even called the RBI’s public helpline (022-22602201) and got a polite but non-committal answer: “There is no RBI restriction by denomination, but most operators have their own policies to manage risk.”

Step-by-Step: How I Actually Tried to Exchange Korean Won in India

Here’s what happened when I tried to exchange my KRW in three different ways:

1. Airport Currency Exchange Counter: Only accepted 10,000 KRW and 50,000 KRW notes. Refused 1,000 and 5,000 KRW. Exchange rate was about 10% lower than official RBI reference rate.
2. Major Bank Branch (State Bank of India, South Mumbai): Required passport, entry stamp, and full KYC. Only accepted 50,000 KRW notes, and imposed a minimum transaction value (INR equivalent of at least 100 USD).
3. Private Money Changer (Centrum Direct, Delhi Airport): Accepted 10,000 and 50,000 KRW notes. Refused all others. Better rates than the airport, but still a hefty margin over interbank rates.

Screenshot from Centrum Direct’s online chat (2024-03-17):
“We only accept Korean Won in 10,000 and 50,000 denominations for exchange into INR. Smaller notes are not processed at our counters.”

So if you’re planning to bring KRW into India, make sure it’s in larger denominations—otherwise you may be stuck with unusable cash.

How “Verified Trade” Standards Differ by Country: A Comparative Table

When it comes to exchanging currencies, each country has its own “verified trade” standards for what notes are accepted, how authenticity is checked, and who regulates the process. Here’s a quick comparison:

Case Study: When Denomination Policies Collide

Consider a case in 2022, when a Korean student (let’s call him Minho) tried to exchange 1,000,000 KRW in mixed denominations at a major Indian bank. The teller rejected all the 1,000 and 5,000 notes, only accepting the 10,000 and 50,000 bills. Minho argued, “But these are legal tender!” The bank manager explained their internal risk policy was based on RBI guidance but ultimately left the decision to each FFMC. This kind of scenario is common and not unique to India; it’s the intersection of regulation and operational risk.

As Rohit Mehra, a compliance head at a leading Indian FFMC, put it during a recent industry webinar, “We’re happy to facilitate genuine trade, but smaller denominations pose disproportionate operational risk. Our priority is compliance and customer safety, which means we stick to higher-value notes that our systems can easily verify.”

For more on the international context, see the OECD’s guidelines on currency and trade verification, which highlight that local market practices often override theoretical legal acceptability.

Personal Reflection: What This Means for Your Travels and Finances

As someone who’s been on both sides—both as a traveler and a finance professional—I can say that the letter of the law is only part of the story. The practical, on-the-ground reality is shaped by each institution’s internal controls, risk appetite, and even what their staff are comfortable handling. If you bring in a wad of small Korean notes, you’re likely to face delays, rejections, and poor rates.

My strong advice: Before traveling, check with your destination exchange office by phone or email, and carry larger denominations if possible. Don’t assume that what’s legal is always practical.

Conclusion & Next Steps

To sum up: While there’s no explicit RBI rule banning specific denominations of Korean Won, virtually all Indian banks and licensed money changers will only accept 10,000 and 50,000 KRW notes for exchange to INR. Operational policies, not law, drive this reality. Smaller notes are typically refused, and even accepted notes may fetch a poorer rate than expected.

Next steps: If you’re heading to India with Korean Won, convert your small notes to larger denominations before you leave South Korea. Always call ahead to your intended exchange provider, and keep up with any changes to FEMA or RBI guidelines (check the official RBI website for updates). For large sums or business transfers, consider using official banking channels or remittances rather than physical cash.

Bottom line? When it comes to currency exchange, practical experience—and a little local knowledge—always trumps theory.