What is the role of the RMA in currency management?
The RMA derives its role in currency management from the RMA Act 1982, which gives the RMA the sole right to issue currency notes and coins in Bhutan. The denominations and the designs of the bank notes, including their security features, and coins are decided by the Board of Directors. The quantity of notes and coins of each denomination that is likely to be needed is estimated, and tenders are called from a number of international security printers or mints. The notes and coins received from the printers and mints are stored in the vaults and issued to the banks and the public as necessary. Bank notes received back from the banks, currency chests and other members of the public are examined to determine whether they are fit for further circulation. Only those banknotes which are in good condition are re-issued for circulation, and soiled or mutilated notes are destroyed by shredding.

Who decides on the volume and value of bank notes to be printed and on what basis?
The final decision on the volume and value of the different denominations of bank notes to be printed is taken by the Board of Directors, on the basis of the management's estimates and recommendations.

How does the RMA estimate the demand for bank notes?
The quantum of bank notes that needs to be printed is broadly estimated on the basis of the rate of growth of the economy, the annual increase in the amount of bank notes in circulation, and replacement of soiled and mutilated notes.

How does the RMA reach the currency to the public?
The RMA manages its currency operations through the branches of the commercial banks located in various parts of the country, at which it maintains "currency chests". The RMA periodically supplies the currency chests with fresh notes and Ngultrum coins. The requirements of bank notes and coins by other branches of the banks for further distribution to the public are met from the currency chests.

What happens when the notes and coins return from circulation?
When notes are returned from circulation, the RMA processes the notes to separate those that are fit for re-issue from those which are soiled and mutilated and, therefore, not fit for further circulation. The notes which are fit for re-issue are sent back to circulation, and those which are unfit for re-issue are shredded so as to maintain the quality of notes in circulation .