How can I convert bitcoins into Indian rupees (INR) and get them in paper rupee notes?
If someone will want to sell bitcoins for Rupees, they might list it on LocalBitcoins. It's a good start.
If you want physical cash without going through a bank then you'll find many individual traders here:
And there are offers to buy and sell posted in threads on the India board:
But as of December, 2012 there are no market exchanges that can do a domestic bank transfer, so cashing out bitcoins would incur costs as an international wire transfer.
There is an E-Currency exchange that will buy your coins (or sell bitcoins to you), including sending a bank transfer:
Here is a forum thread of one reputable trader who can also send INR as a bank transfer:
You can sell bitcoin on BuySellBitco.in We support NEFT payment to all Indian bank account same day.
Disclaimer : I work for buysellbitco.in
INRBTC allows you to buy/sell bitcoins in Indian Currency using the unique trading platform.
Place your order details and submit. you will be asked to deposit 10% of your order value in Bitcoins, after the deposit is sent, the order will be confirmed.
As soon as your order is matched, a trade will be executed and you will be sent the trade details.
If the other party does not honor the Trade, you will be paid 5% of the order value as compensation from the counter-parties deposit.
After the successful completion of trade, the deposit will be refunded after deduction of commission.
More information about the Trading platform is available at INRBTC Info.
User reviews on using this platform is available at Reviews.
Note : A similar question has been asked at How do I transfer funds from India to an exchange? , the answer posted there has been posted here too.