:: Royal Monetary Authority of Bhutan - About RMA

Does one need to obtain RMA’s approval for foreign exchange remittances?
Beginning August 1, 2010, the RMA has delegated all foreign exchange retail businesses to commercial banks. Therefore, any remittances of foreign exchange should be processed directly from any commercial banks without reference to the RMA.

With the delegation of foreign exchange to commercial banks, is there any new regulation set out by the RMA to commercial banks for foreign exchange transaction? If yes, does the new regulation supersede the Foreign Exchange Regulations 1997?
Yes, we have Foreign Exchange Operational Guideline (August 1, 2010) in place. The Foreign Exchange Operational Guideline was framed basically to assist commercial banks in processing foreign exchange transaction. It covers basic operational rules and procedures of foreign exchange transaction. The Guideline is amendable as and when necessary and framed in line with the Foreign Exchange Regulations 1997. Hence, it will not supersede the Foreign Exchange Regulations of 1997.

What are the purposes for which foreign exchange can be obtained?
The framework for the administration of foreign exchange controls by the RMA is provided by the Foreign Exchange Regulations approved by the National Assembly in 1997. The regulations set out the purposes, amounts and the terms and conditions subject to which foreign exchange can be obtained. In addition, beginning August 1, 2010 a Foreign Exchange Operational Guideline was framed and issued with the delegation of foreign exchange retail businesses to the commercial banks. Under the guideline, foreign exchange is admissible for most current account transactions with persons resident in countries other than India.

Are there any Foreign Exchange remittances that require RMA’s approval?
Yes, any other foreign exchange payments/issues not covered under the Foreign Exchange Operational Guideline (August 1, 2010) should refer to the RMA for approval and all related debt repayments.

Is Foreign Exchange available for transaction with India?
In terms of Article VII of the Trade and Commerce Agreement between Bhutan and India, transactions between persons resident in Bhutan and India are denominated in Indian rupees or Ngultrum. Therefore, foreign exchange is not admissible for any kind of travel to India, or for transactions with person resident in India.

What is the procedure for remitting foreign exchange payments for imports?
Imports from third countries require an Import License from the Department of Trade, Ministry of Economic Affairs (MoEA). The rules and procedures for importing goods from third countries are set out in the Rules and Procedures for Imports from Third Countries issued by the Department of Trade/MoEA. An importer who has obtained an Import License can remit payment in foreign exchange through an authorized bank by means of a Letter of Credit or by SWIFT/Electronic Transfer to the supplier abroad.

Who can make payments for imports without import license and what is the procedure for remitting foreign exchange payments for imports without import license?
Except for Government Agencies, no other individual or private firms are allowed to make payment for imports without import license. With prior approval from the Ministry of Finance. The gGovernment Agencies shall be allowed cash up to USD 1000.00 for import below USD 1000.00 and for import above USD 1000.00, the payment should be electronically transferred to account abroad.

Can a person be allowed to avail foreign exchange all in cash?
Yes, a person is allowed to avail foreign exchange all in cash. However, it is at the discretion of an individual either to take in Cash or Traveller Cheques.

Can one obtain foreign exchange for Private Visits Abroad?
All Bhutanese citizens irrespective of the age, traveling abroad other than India for any purposes like holidays etc., are entitled up to USD 3000 only per calendar year. The ceiling of US$ 3000 is applicable in aggregate and foreign exchange may be obtained for one or more visits provided the aggregate amount does not exceed the ceiling of US$ 3000.00.This entitlement may be drawn along with foreign exchange for other visits abroad, such as for business, studies, training or medical treatment. To avail this entitlement, an individual traveling abroad should submit a copy of confirmed Air-ticket and Passport directly to any commercial bank along with the application in Form # I of respective bank.

How much foreign exchange is available for Business Travel Abroad (BTA)?
A Bhutanese citizen with valid Trade license, traveling abroad on business to any country other than India can obtain foreign exchange at the Daily Subsistence Allowance rates prescribed by the Ministry of Finance. Therefore, the proposed itinerary and evidence in the form of airline tickets, passport, and any other documents, such as copies of correspondence with parties abroad, should be submitted directly to any commercial bank along with the application in Form # II of respective bank. Visits abroad for attending international conferences, seminars, training, study tours, market research, trade fairs etc. are treated as business trips.

Can a person obtain foreign exchange for Studies and Training Abroad (STA)?
Yes, foreign exchange is available for Bhutanese students pursuing studies in any third country. Students who have been admitted in institutions abroad may obtain foreign exchange to cover the actual fees based on fee structure from the institution. They can avail up to US dollar 900.00 per month as stipend and USD 1500.00 per month towards their living costs/incidental expenses, provided that this is not included in the institution's fees. To avail this foreign exchange, an applicant should submit all required documents directly to any commercial bank along with the application in Form # III of respective bank.

How much foreign exchange is available for medical treatment abroad (MTA)?
A person going for medical treatment is based on the approval accorded from JDWNRH Referral Committee where the illness cannot be treated either in Bhutan or India. During the travel, patient will be entitled only for the Annual Travel Scheme (ATS) and not MTA. The foreign exchange required for medical treatment will be directly wired to the designated hospital abroad upon receiving the details of the bank account and approximate cost of the treatment. Copy of the medical bill must be submitted directly to commercial banks along with the application in Form # IV of the respective bank to process foreign exchange for medical treatment.

Can a resident open a foreign currency account with a bank in Bhutan? Is multiple foreign currency account allowed? Does it require RMA’s approval?
At present, only the following categories of residents are permitted to open and maintain US dollar denominated foreign currency accounts in Bhutan without RMA’s approval: Diplomatic missions and their expatriate employees. Representative offices of donor agencies and their expatriate employees.

The third country contracting firms engaged in executing projects financed by donor agencies, and their expatriate employees. Any other national of a third country who is resident in Bhutan requires priopr approval of the RMA.

Operation of multiple foreign currency account in Bhutan is not permitted. Foreign currency account is permitted only in one of the commercial banks in Bhutan and the account must be denominated in United States Dollars only, unless such accounts are funded predominately in Euro or other currencies.

Can Individual Bhutanese citizens allowed to maintain foreign currency account with a bank in Bhutan? Does it require RMA’s approval?
No, Individual Bhutanese citizens are not permitted to open foreign currency account with Bank in Bhutan. However, following business entity/Agencies in Bhutan are permitted to operate foreign currency account with prior approval from the RMA: Manufacturing and services industries requiring convertible currencies for raw material import. Foreign Direct Investment Companies (FDI). Agencies/organizations receiving grants, donation or similar inward remittances in permitted convertible currency for projects that have been approved by the Royal Government.

Can a Bhutanese citizen maintain and operate foreign currency accounts abroad?
No, Bhutanese citizens resident in Bhutan are not permitted to open, maintain and operate bank accounts outside the territory of Bhutan. However, citizens who proceed abroad for purposes of work, studies, training, etc. may open accounts with banks abroad and operate them during their stay abroad.

Which foreign currencies are accepted in Bhutan?
The bank notes and travellers' cheques denominated in any of the following currencies are accepted in Bhutan.
US dollar
Euro
British Pound
Swiss Franc
Norwegian Kroner
Canadian Dollar
Singapore dollar
Hong Kong dollar
Australian dollar
Japanese Yen
Swedish Kroner
Danish Kroner

Is it permissible to use foreign exchange for payments within Bhutan?
Except for the Indian rupee to which the Ngultrum is pegged at parity, and which circulates freely in Bhutan, paying, or receiving payments in any other foreign currency for transactions in Bhutan is illegal. Foreign residents can make payments in approved foreign currency (notes and foreign currencies - denominated cheques from foreign currency accounts) to the Duty Free Store, Handicrafts Emporium, and Druk Air.

Is there a limit on the amount of foreign exchange that may be brought into Bhutan?
There is no limit on the amount of convertible foreign exchange that may be brought into Bhutan. However, as per the Export and Import of Currency Regulations 2003, a person brining more than United States Dollars 10,000.00 or its equivalent, should declare the amount at the customs point of entry into Bhutan. There is no limit on the amount of Indian currency that a person may bring into Bhutan. However, travellers should note that under the laws of India, Indian currency notes in denominations above Rs.100 are not allowed to be sent or brought into Bhutan and Nepal.

Are there any restrictions on the amount of foreign exchange that a person can take out of Bhutan?
Convertible foreign exchange that has been obtained from authorized banks, and such additional amounts as may reasonably be in the possession of a person may be taken out of Bhutan. However, if the total value of foreign currency taken out of Bhutan exceeds United States Dollars 10,000.00 or its equivalent, the individual should declare the total value and sources of such foreign currency to customs at the time of departure.

How much Bhutanese currency can be taken out of Bhutan?
Except with the general permission of the RMA, no person may take out of Bhutan or bring into Bhutan (other than to or from India) Bhutanese currency exceeding Ngultrum 5000.00

How much Indian currency can be taken out of Bhutan?
There is no limit on the amount of Indian currency that a person may send or take from Bhutan to India. It should, however, be noted that under the laws of India, it is illegal to send or to bring Indian currency notes in denominations above Rs.100 into India from Bhutan and Nepal. Persons going to a third country from Bhutan should not carry more than Rs.5000 in Indian currency notes.


	About Foreign Exchange (Q & A)
	Does one need to obtain RMA’s approval for foreign exchange remittances? Beginning August 1, 2010, the RMA has delegated all foreign exchange retail businesses to commercial banks. Therefore, any remittances of foreign exchange should be processed directly from any commercial banks without reference to the RMA. With the delegation of foreign exchange to commercial banks, is there any new regulation set out by the RMA to commercial banks for foreign exchange transaction? If yes, does the new regulation supersede the Foreign Exchange Regulations 1997? Yes, we have Foreign Exchange Operational Guideline (August 1, 2010) in place. The Foreign Exchange Operational Guideline was framed basically to assist commercial banks in processing foreign exchange transaction. It covers basic operational rules and procedures of foreign exchange transaction. The Guideline is amendable as and when necessary and framed in line with the Foreign Exchange Regulations 1997. Hence, it will not supersede the Foreign Exchange Regulations of 1997. What are the purposes for which foreign exchange can be obtained? The framework for the administration of foreign exchange controls by the RMA is provided by the Foreign Exchange Regulations approved by the National Assembly in 1997. The regulations set out the purposes, amounts and the terms and conditions subject to which foreign exchange can be obtained. In addition, beginning August 1, 2010 a Foreign Exchange Operational Guideline was framed and issued with the delegation of foreign exchange retail businesses to the commercial banks. Under the guideline, foreign exchange is admissible for most current account transactions with persons resident in countries other than India. Are there any Foreign Exchange remittances that require RMA’s approval? Yes, any other foreign exchange payments/issues not covered under the Foreign Exchange Operational Guideline (August 1, 2010) should refer to the RMA for approval and all related debt repayments. Is Foreign Exchange available for transaction with India? In terms of Article VII of the Trade and Commerce Agreement between Bhutan and India, transactions between persons resident in Bhutan and India are denominated in Indian rupees or Ngultrum. Therefore, foreign exchange is not admissible for any kind of travel to India, or for transactions with person resident in India. What is the procedure for remitting foreign exchange payments for imports? Imports from third countries require an Import License from the Department of Trade, Ministry of Economic Affairs (MoEA). The rules and procedures for importing goods from third countries are set out in the Rules and Procedures for Imports from Third Countries issued by the Department of Trade/MoEA. An importer who has obtained an Import License can remit payment in foreign exchange through an authorized bank by means of a Letter of Credit or by SWIFT/Electronic Transfer to the supplier abroad. Who can make payments for imports without import license and what is the procedure for remitting foreign exchange payments for imports without import license? Except for Government Agencies, no other individual or private firms are allowed to make payment for imports without import license. With prior approval from the Ministry of Finance. The gGovernment Agencies shall be allowed cash up to USD 1000.00 for import below USD 1000.00 and for import above USD 1000.00, the payment should be electronically transferred to account abroad. Can a person be allowed to avail foreign exchange all in cash? Yes, a person is allowed to avail foreign exchange all in cash. However, it is at the discretion of an individual either to take in Cash or Traveller Cheques. Can one obtain foreign exchange for Private Visits Abroad? All Bhutanese citizens irrespective of the age, traveling abroad other than India for any purposes like holidays etc., are entitled up to USD 3000 only per calendar year. The ceiling of US$ 3000 is applicable in aggregate and foreign exchange may be obtained for one or more visits provided the aggregate amount does not exceed the ceiling of US$ 3000.00.This entitlement may be drawn along with foreign exchange for other visits abroad, such as for business, studies, training or medical treatment. To avail this entitlement, an individual traveling abroad should submit a copy of confirmed Air-ticket and Passport directly to any commercial bank along with the application in Form # I of respective bank. How much foreign exchange is available for Business Travel Abroad (BTA)? A Bhutanese citizen with valid Trade license, traveling abroad on business to any country other than India can obtain foreign exchange at the Daily Subsistence Allowance rates prescribed by the Ministry of Finance. Therefore, the proposed itinerary and evidence in the form of airline tickets, passport, and any other documents, such as copies of correspondence with parties abroad, should be submitted directly to any commercial bank along with the application in Form # II of respective bank. Visits abroad for attending international conferences, seminars, training, study tours, market research, trade fairs etc. are treated as business trips. Can a person obtain foreign exchange for Studies and Training Abroad (STA)? Yes, foreign exchange is available for Bhutanese students pursuing studies in any third country. Students who have been admitted in institutions abroad may obtain foreign exchange to cover the actual fees based on fee structure from the institution. They can avail up to US dollar 900.00 per month as stipend and USD 1500.00 per month towards their living costs/incidental expenses, provided that this is not included in the institution's fees. To avail this foreign exchange, an applicant should submit all required documents directly to any commercial bank along with the application in Form # III of respective bank. How much foreign exchange is available for medical treatment abroad (MTA)? A person going for medical treatment is based on the approval accorded from JDWNRH Referral Committee where the illness cannot be treated either in Bhutan or India. During the travel, patient will be entitled only for the Annual Travel Scheme (ATS) and not MTA. The foreign exchange required for medical treatment will be directly wired to the designated hospital abroad upon receiving the details of the bank account and approximate cost of the treatment. Copy of the medical bill must be submitted directly to commercial banks along with the application in Form # IV of the respective bank to process foreign exchange for medical treatment. Can a resident open a foreign currency account with a bank in Bhutan? Is multiple foreign currency account allowed? Does it require RMA’s approval? At present, only the following categories of residents are permitted to open and maintain US dollar denominated foreign currency accounts in Bhutan without RMA’s approval: Diplomatic missions and their expatriate employees. Representative offices of donor agencies and their expatriate employees. The third country contracting firms engaged in executing projects financed by donor agencies, and their expatriate employees. Any other national of a third country who is resident in Bhutan requires priopr approval of the RMA. Operation of multiple foreign currency account in Bhutan is not permitted. Foreign currency account is permitted only in one of the commercial banks in Bhutan and the account must be denominated in United States Dollars only, unless such accounts are funded predominately in Euro or other currencies. Can Individual Bhutanese citizens allowed to maintain foreign currency account with a bank in Bhutan? Does it require RMA’s approval? No, Individual Bhutanese citizens are not permitted to open foreign currency account with Bank in Bhutan. However, following business entity/Agencies in Bhutan are permitted to operate foreign currency account with prior approval from the RMA: Manufacturing and services industries requiring convertible currencies for raw material import. Foreign Direct Investment Companies (FDI). Agencies/organizations receiving grants, donation or similar inward remittances in permitted convertible currency for projects that have been approved by the Royal Government. Can a Bhutanese citizen maintain and operate foreign currency accounts abroad? No, Bhutanese citizens resident in Bhutan are not permitted to open, maintain and operate bank accounts outside the territory of Bhutan. However, citizens who proceed abroad for purposes of work, studies, training, etc. may open accounts with banks abroad and operate them during their stay abroad. Which foreign currencies are accepted in Bhutan? The bank notes and travellers' cheques denominated in any of the following currencies are accepted in Bhutan. US dollar Euro British Pound Swiss Franc Norwegian Kroner Canadian Dollar Singapore dollar Hong Kong dollar Australian dollar Japanese Yen Swedish Kroner Danish Kroner Is it permissible to use foreign exchange for payments within Bhutan? Except for the Indian rupee to which the Ngultrum is pegged at parity, and which circulates freely in Bhutan, paying, or receiving payments in any other foreign currency for transactions in Bhutan is illegal. Foreign residents can make payments in approved foreign currency (notes and foreign currencies - denominated cheques from foreign currency accounts) to the Duty Free Store, Handicrafts Emporium, and Druk Air. Is there a limit on the amount of foreign exchange that may be brought into Bhutan? There is no limit on the amount of convertible foreign exchange that may be brought into Bhutan. However, as per the Export and Import of Currency Regulations 2003, a person brining more than United States Dollars 10,000.00 or its equivalent, should declare the amount at the customs point of entry into Bhutan. There is no limit on the amount of Indian currency that a person may bring into Bhutan. However, travellers should note that under the laws of India, Indian currency notes in denominations above Rs.100 are not allowed to be sent or brought into Bhutan and Nepal. Are there any restrictions on the amount of foreign exchange that a person can take out of Bhutan? Convertible foreign exchange that has been obtained from authorized banks, and such additional amounts as may reasonably be in the possession of a person may be taken out of Bhutan. However, if the total value of foreign currency taken out of Bhutan exceeds United States Dollars 10,000.00 or its equivalent, the individual should declare the total value and sources of such foreign currency to customs at the time of departure. How much Bhutanese currency can be taken out of Bhutan? Except with the general permission of the RMA, no person may take out of Bhutan or bring into Bhutan (other than to or from India) Bhutanese currency exceeding Ngultrum 5000.00 How much Indian currency can be taken out of Bhutan? There is no limit on the amount of Indian currency that a person may send or take from Bhutan to India. It should, however, be noted that under the laws of India, it is illegal to send or to bring Indian currency notes in denominations above Rs.100 into India from Bhutan and Nepal. Persons going to a third country from Bhutan should not carry more than Rs.5000 in Indian currency notes.