Bhutan Lifts Ban On Rupee Note, Advises Against Holding Indian Currency In Cash

Bhutanese can now bring new series of INR 500 notes in and out of Bhutan.

The new 500 rupee note issued by India in 2016. (Source: Reserve Bank of India)


By Kinley Yangden | Bhutan Times

Bhutan’s Royal Monetary Authority (RMA) has issued a notification last week allowing Bhutanese to carry INR 500 notes in and out of the country, subjected to a limit of INR 25,000.

In the notification, RMA also advised Bhutanese against holding INR currency notes in cash, for fear of “demonetization of INR currency notes in the future”, and to deposit any INR earnings into their accounts maintained with commercial banks here.

It added: “RMA shall not be liable or responsible in case of any policy changes by the Reserve Bank of India, including demonetization of INR currency notes in the future.

Affected by demonetization in India

Bhutan, along with Nepal, were caught off guard in November 2016 when India demonetized 80 per cent of its currency notes and replaced them with new notes of different denominations. India claimed that this was a move against black money and counterfeit currency.

Bhutan uses the Indian currency as legal tender within its borders and this move affected trade between the two countries, causing a ripple effect that was felt from farmers to traders, and even in the tourism industry.

Quota on withdrawing new Indian notes

A strict daily quota on withdrawing new Indian notes was imposed in December 2016. Hundreds lined up outside RMA to exchange Ngultrums for India Rupees, most of whom were pilgrims who were planning on visiting holy sites in India.

Lotteries were held and only a handful of lucky ones were allowed to get INR 5,000 notes at one go.

In August 2017, the RMA had also issued a notice informing the public that the INR 500 and INR 2,000 denominations were not permitted in exchange in Bhutan, urging the public from accepting the denominations “in any mode of business in Bhutan”.

RMA warns against counterfeit notes

In addition to its latest notice on lifting the ban, the RMA also cautioned the public against counterfeit INR 500 notes and advised “all individuals to be vigilant and careful while accepting this denomination”.


Related Posts

Drukair Orders New Aircraft That's Equipped With Latest Visual...

The new ClearVision technology on the aircraft allows pilots to get a clear picture of the runway while landing the...

Jul 19, 2018 12:47

After 9 Years, The Amochhu Bridge In Bhutan Finally Opened On 14...

The driving distance between Phuentsholing and Samtse is now reduced to 57km from 81.2km

Jul 18, 2018 14:57

Thai PM Prayut To Discuss Trade And Investment During Visit To...

He will be visiting Bhutan for two days from July 19 to 20.

Jul 18, 2018 09:58

Bhutanese Youth Devised Gross National Happiness Projects At The...

About 30 students attended the workshop from seven colleges in Bhutan.

Jul 16, 2018 18:41

Ashi Tashi Chodzom Dorji Becomes First Bhutanese To Be Honoured...

She was instrumental in strengthening the relations between Bhutan and Australia.

Jul 12, 2018 11:38

Bhutan Marked International Day Against Drug Abuse And Illicit...

This year, the United Nations celebrated the International Day against Drug Abuse and Illicit Trafficking with the theme...

Jul 11, 2018 15:58



Drukair Orders New Aircraft That's Equipped With Latest Visual Technology

The new ClearVision technology on the aircraft allows pilots to get a clear picture of the runway while landing the aircraft.

Jul 19, 2018 12:47

After 9 Years, The Amochhu Bridge In Bhutan Finally Opened On 14 July 2018

The driving distance between Phuentsholing and Samtse is now reduced to 57km from 81.2km

Jul 18, 2018 14:57


Bhutan's climb to medicines safety

Pharmacovigilance is the science and activities relating to the detection, assessment, understanding and prevention of adverse drug...

Jul 17, 2018 14:31

11th Golden Youth Award Camp Aims To Inspire Bhutanese Youth To Excel Holistically

The camp’s theme ‘Celebrating Unity for Excellence’, is a pledge by the youth to be advocators and agents of peace, harmony and...

Jul 12, 2018 16:14


Future Of Bhutan’s Women Football Depends On The Development Of Local Coaches

The football coach of the national women’s team, Sung Jea Lee said that there is a need to train local coaches.

Jul 08, 2018 18:16

Bhutan’s Two Young Representatives Shared Their Unforgettable Experiences At The 2018 FIFA World Cup in Russia

Bhutan was represented by two students, Rigzin Tenzin, 12, from Gelephu and Kinley Deki Yangzom, 12, from Lobesa Lower Secondary School,...

Jun 30, 2018 14:06


Cottage And Small Industry Which Saw 20% Growth Is A Pillar Of Bhutan’s Industry Sector

To date, the CSIs constitute more than 90 percent of Bhutan’s industry sector.

Jul 19, 2018 13:46

Royal Bhutan Helicopter Services Has Generated Profits And Served More Than 500 Tourists And Locals Since 2016

The RBHS was launched with the primary objective of providing services during medical emergencies and natural disasters and also for tourism...

Jul 14, 2018 14:23


Heading To Haa, Bhutan For The Summer Festival? Here Are Some Culinary Delights You Must Not Miss!

Savour the most delectable cuisine from the province of Haa in Bhutan.

Jul 13, 2018 14:54

Rare Masked Dances - One Of The Unique Features Of The Kholong Tshechu (Brawl Festival) In Bhutan

“Other dances like the Pha-dong chham, Sangling Ngachham, and Terchham among others are not performed in any part of the country,” said...

Jul 03, 2018 14:44


Suja – Bhutanese Butter Tea Infused With Happiness To Kickstart Your Day

Traditionally, Suja is made from tea leaves, water, salt and yak butter.

Jul 17, 2018 17:19

Bhutan Film Festival Held In Sikkim To Commemorate 50 Years Of Bhutan-India Friendship Ended With Colourful Traditional Dances

Bhutanese celebrities and Sikkim’s local artists performed various traditional and cultural performances at the festival.

Jul 15, 2018 14:32

Subscribe to our newsletter

Never miss out on new happenings and news stories!