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The official Bhutan Currency is Bhutan Ngultrum(BTN) and the Symbol of Bhutan currency is Nu. , which is pegged to Indian Currency. The Reserve Bank of India regulates Bhutan’s Currency. Please find the present Bhutan currency in US dollars. Follow the exchange rate with all currencies. Due to the internal agreement between India and Bhutan, Bhutanese currency is working at par with Indian Currency. Bhutan currency “Ngultrum” derives from the Dzongkha(The national language of Bhutan) “Ngul” is “silver” and “Trum” is a Hindi loanword meaning money.
The currency history of Bhutan currency starts from the year 1789. First, the coins of the Cooch Behar under India circulated in Bhutan. Bhutan started issuing its coins known as chetrum. Mostly it was silver coins with 1⁄2 rupees. Until 1929 hammered silver and copper coins were the only coins. Later bronze 1 paisa in 1931 was introduced. In 1950 further nickel 1⁄2 rupee coins were introduced. Bhutan’s first issue of coins denominated in “Naya paisa”.
Bhutan’s economy was first boosted by the opening of Tourism in Bhutan as well as road construction from Phuentsholing to Thimphu in the 1960s. In 1968 first bank government-owned established the Bank of Bhutan. As monetary reforms took place in 1974. The official name Ngultrum was introduced as 100 Chhetrum equal to 1 Ngultrum. From that day onwards till date, the Ngultrum retained the peg to the Indian rupee at par.
The Ministry of Finance issued the first banknotes in 1974 under the denominations of Nu.1, Nu.5, Nu.10, and Nu.100. The Royal Monetary Authority of Bhutan as the central bank of Bhutan was established in 1982. The Royal Monetary Authority of Bhutan(RMA) started issuing banknotes in 1983.
Bhutan National Bank started on July 25th, 1980 as Unit Trust of Bhutan (UTB) with initial funding of Nu. 2.5 million by the Royal Insurance Corporation of Bhutan. The trust functioned as a subsidiary of RICB to inculcate saving habits among the general public and channel resources into productive sectors.
On the 1st of January 1992, the royal government conferred the trust with the status of an independent financial institution. In its first year, the trust declared a profit of mere Nu. 9618.86.
With the growing economy and only one bank in the kingdom in 1995, the trust was converted into a commercial bank with assistance from the Asian Development Bank.
Banking in Bhutan has grown slowly since the establishment of the Bank of Bhutan and the Royal Monetary of Bhutan. When RMA started issuing currency and coins in Bhutan. When the country started to trade and inflow tourists. In 1982, the Royal Monetary Authority of Bhutan, or the Central Bank of Bhutan was established in Thimphu. RMA was responsible for issuing currency and coins, regulating and implementing monetary policies, coordinating financial institutions in Bhutan, and holding foreign exchange reserves.
Royal Monetary Authority of Bhutan was established in 1982 as the central or Reserve Bank of Bhutan. The RMA operated from 1st April 1983 with full authority for the issue of the national currency, the management of the external reserves, and foreign exchange operations. In 1988, it was a Government banker, holding the bulk of government deposits and providing finance. The Financial Institution Act of Bhutan 1992, was amended to include licensure, regulation, and supervision of financial institutions of Bhutan.
RMA Act 2010 passed by the Parliament in June 2010 replaced the RMA Act (1982). RMA has been an autonomous Central Bank with monetary powers.
Bhutan Development Bank Limited (BDB) was incorporated by the Royal Charter, in January 1988. The bank was assisted by Asian Development Bank (ADB). BDB now functions as a domestic development bank that caters to rural banking in Bhutan. It started after obtaining its banking license in March 2010.
BDB is the only Bank that gives more credit facilities to rural farmers. It gives a nationwide credit program, which mainly provides seasonal, small, and medium-term loans to small farmers. It had also commenced its Industrial Lending operations providing term finance and working capital for industrial and Agro-based ventures. The Royal Government of Bhutan owns 96% of its paid-up share capital.
Bhutan National Bank started on July 25th, 1980 as the Unit Trust of Bhutan (UTB). On the 1st of January 1992, the Royal Government of Bhutan conferred the trust independent financial institution. With the growing economy in the country in 1995, the trust was converted into a commercial bank with assistance from the Asian Development Bank(ADB).
It was in July 1996 bank floated shares to the public. This was made with an ownership of 28.58 % by the general public. In 1996 at the end of December bank was computerized with software called Micro Banker. In 1997 the Royal Government divested 40 percent of its equity to ADB and Citibank making with foreign interests. To encourage private sector participation to the optimum and to cultivate a sense of competition, dynamism, and professionalism in 2001. Again in 2003, the banking software was replaced by Flexcube.
In 2004 the bank launched the first-ever ATM services in the country. Three years later, Bhutan National Bank Limited introduced a debit point-of-sale terminal that helped people with debit cards effortlessly shop in Bhutan.
SMS Banking Services started. Other banking services like recurring deposits and rupee-denominated prepaid cards were started in April 2011 and in December 2011. In November 2012 Piggy Bank Accounts were launched for children aged 4 – 18 to encourage children to saving habits. Online e-banking was launched like B-Wallet which enables the consumer to transfer for utility bill payments. In 2016, mPAY was launched to make it easier for mobile phones to do banking services through smartphones.
The very recent achievement by the bank was the introduction of the INR withdrawal card RUPAY in India. It allowed Bhutanese ATM terminals to accept RuPay-branded cards issued by banks in India. Indian Minister Shri Narendra Modi and Bhutan Prime Minister Dr. Lotay Tshering Prime Minister of Bhutan, jointly re-launched the RuPay card issuance by the Bhutan National Bank(BNBL) on 20th November 2020. Any Indian traveling to Bhutan(Regional Tourist) can use Any Indian ATM t withdraw cash in Bhutan.
The Druk Punjab National Bank is the first foreign investment bank in Bhutan. 51% share is of Punjab National Bank from India 19% Bhutanese promoters and 30% share floated to the public in Bhutan. The bank provided services to Eight districts in Bhutan i.e. Thimphu, Phuentsholing, Wangdue, Gelephu, Paro, Trongsa, Samtse, and Bumthang. Druk Punjab National Bank made it easy for regional tourists traveling to Bhutan. Druk Punjab National Bank got linked with Punjab National Bank from India and any Indian cardholder can withdraw cash in Bhutan from any ATM dispenser following the norms of ATM card.
Bhutan currency to US dollar is 1 us dollar to Bhutan currency =Nu.73.9. Bhutan currency can be exchanged with any common curries like US dollars, Euros, and so on. Tourists can exchange traveler’s cheques or cash at the foreign exchange counter at Paro Airport. Even all tourist hotels in Bhutan can provide an exchange for any currency at the front desk. You may not get a good exchange rate from Banks in Bhutan. You can carry international debit and credit cards to withdraw money from Bhutan ATMs. Master Card and Visa international credit and debit cards can be used at these ATMs to withdraw cash. Credit cards are only accepted in a very limited number of handicraft stores in Thimphu and high-end hotels. As you travel into the interior, ATM and banking facilities are almost non-existent. We suggest that you do your banking during your stay in Paro, Thimphu, Punakha, Wangdue, Trongsa, and Bumthang. Carry local currency with you in remote parts of Bhutan.
Currencies that can be exchanged include the U.S. Dollar, Pound Sterling, Euro, Japanese Yen, Swiss Franc, Hong Kong Dollar, Canadian Dollar, Denish Kroner, Australian Dollar, and Singapore Dollar. Bhutan currency to Dollar exchange is very common. Even you can exchange with your tour guides and drivers who are accompanying you.
While traveling to Bhutan one should be aware that Bhutan Visa is approved before arrival. Any Tour agency in Bhutan will provide you with a tour package. Once you have confirmed your visa for Bhutan you have to process the tour package payment with a minimum daily package. Traveling to Bhutan should be planned before your arrival. The Bhutan visa is not approved on arrival. One needs to plan 3-4 months before traveling to Bhutan.
One needs to transfer the full package tour cost in advance from your Bank to our Bank in Bhutan. Once you are in Bhutan you are looking after your Bhutan Tour agency.
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