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

Email

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

Bhutan Ranks 134th Out Of 189 Countries On The Human Development...

Bhutan has climbed a step up from its 135th rank in 2016, according to the Human Development Indices and Indicators.

Sep 19, 2018 16:25

National Assembly Election 2018: Druk Nyamrup Tshogpa And Druk...

Druk Nyamrup Tshogpa secured 92,722 votes and Druk Phuensum Thosgpa secured 90,020 votes.

Sep 15, 2018 21:50

Samdrup Jongkhar Aims To Be The First Plastic Free Town In Bhutan

It may take time for Samdrup Jongkgar to become a completely plastic-free town but the residents will work towards...

Sep 11, 2018 16:56

New DrukAir Route Linking Guwahati, Singapore And Paro Set To...

The route is expected to facilitate travel, trade and people to people exchange in Bhutan, Assam and Singapore as well...

Sep 02, 2018 15:42

Month-long Gross National Happiness Advocacy Programme Seeks To...

The Gross National Happiness team plans to visit at least seven colleges and 12 schools across the country.

Aug 31, 2018 12:28

Bhutan to hold 3rd general election on Oct 18

The primary round will be held on Sept 15, followed by the general election on Oct 18.

Aug 20, 2018 11:05

Latest

News

Bhutan Ranks 134th Out Of 189 Countries On The Human Development Index

Bhutan has climbed a step up from its 135th rank in 2016, according to the Human Development Indices and Indicators.

Sep 19, 2018 16:25

National Assembly Election 2018: Druk Nyamrup Tshogpa And Druk Phuensum Thosgpa Through To General Round

Druk Nyamrup Tshogpa secured 92,722 votes and Druk Phuensum Thosgpa secured 90,020 votes.

Sep 15, 2018 21:50

Features

Drukgyel Dzong Which Used To House Sacred Bhutanese Documents Lost to A Fire In 1951, To Be Restored By 2022

The reconstruction works began in April 2016 after the command of His Majesty The King to celebrate the birth of His Royal Highness (HRH)...

Sep 17, 2018 15:42

11 Year Old Author Revives Forgotten Snowball Culture Of ‘Khakey’ In Bhutan

Khakey is a custom that originated in Western Bhutan and was popular a few generations ago.

Sep 13, 2018 19:27

Sports

Bhutanese Female Athlete Aces In Athletics And Boxing While Juggling Studies

Tandin was selected to compete at the 18th Asian Games in Indonesia last month.

Sep 09, 2018 17:24

An American Won The Breath-Taking 268km Tour Of The Dragon Mountain Bike Race In Bhutan

The 268 km race is considered as the toughest one-day mountain bike race in the world.

Sep 05, 2018 16:30

Business

Cultivation Of Avocado Looks Set To Take Off In Tsirang, Bhutan

A few farmers have already started selling avocados in the Sunday vegetable market for about Nu 250-350 a kilogram.

Sep 18, 2018 15:38

BEBL Group Aims To Export Bhutan’s Finest Agro-Products To New Markets Such As The Middle-East

Most of the Bhutanese commodities are absorbed within the Indian market, BEBL feels that the farmers are deprived of their deserving market...

Sep 14, 2018 17:52

Travel

Handicrafts Shops Thrives In Paro Selling Bhutanese Textile, Paintings, Bamboo Products And More

With businesses picking up fast as a result of the tourism boom, the handicraft shops in Paro have even formed a committee with a...

Sep 16, 2018 14:56

Be Awe-Inspired By The ‘Dance Of The Terrifying Gods’ And More At The Thimphu Tshechu Which Starts On 19 Sept

Held from 19 to 21 Sept 2018, the annual Thimphu Tshechu (festival) is a vibrant visual feast for both locals and foreigners.

Sep 12, 2018 20:45

Lifestyle

Miniature Bhutan Creates Amazing Artworks Out Of Pencil Lead And Rice Grains

Miniature Bhutan carves on the lead of pencil tips to make traditional miniature sculptures such as the Buddha, traditional bridges, swords...

Sep 10, 2018 12:44

Bhutan Buy - E-Commerce Platform Seeks To Promote Sale Of Bhutanese Products And Change The Way Bhutanese Shop

Samir Pradhan started Bhutanbuy, an e-commerce company, the first of its kind in Bhutan.

Sep 06, 2018 23:30

Subscribe to our newsletter

Never miss out on new happenings and news stories!