When a shop or ATM abroad offers to charge you in rupees, using its own exchange rate.
With DCC the merchant converts the price to rupees at the till. It looks convenient, but the merchant's rate is usually worse than the card network's rate, and many Indian banks still add a fee on the transaction because the merchant is abroad.
The simple rule: when asked whether to pay in rupees or the local currency, choose the local currency.
Short reads that explain how it works before you decide.
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