BRIEF HISTORY OF CURRENCY IN BHUTAN:
Commerce in Bhutan was traditionally carried out through a system of barter in rice, butter, cheese, meat, wool, hand-woven cloth and other local product. Bhutan first began to produce coins in silver towards the end of the 18th century, mainly for use in trade with the plains. These were followed by coins struck in alloyed silver, copper or brass, which were used for minor local purchases. These pieces, known as "Ma-trum" or "Chhe-trum" were struck by several local chieftains, rather than by the central government. Coin production continued into the 20th century under the reign of the first King, Druk Gyalpo Ugyen Wangchuck (1907-26), who gradually improved the quality of striking. In 1928/29, during the reign of the second King, Druk Gyalpo Jigme Wangchuck (1926-52), fine machine struck silver and copper coins were introduced into circulation, marking the beginning of modern coinage in Bhutan. However, throughout this period the use of coins remained limited, and barter remained the predominant means of carrying out transactions, and even government officials were paid in kind, rather than in cash. In the mid 1950's, during the reign of the third King, Druk Gyalpo Jigme Dorji Wangchuck (1952-72), the economy gradually started to become more widely monetised, with further issues of "silver" coins, using the dies of his father, but of a nickel alloy. In 1968, the Bank of Bhutan was established as a further step towards full monetisation. By this time most salaries were paid in cash, rather than in kind.
Monetary reform commenced in 1974, during the reign of the 4th King, Druk Gyalpo Jigme Singye Wangchuck, with the issue by the Ministry of Finance of the first bank notes in 1974 coinciding with His Majesty's Coronation. The unit of currency was accordingly standardised with 100 Chhetrum being equal to 1 Ngultrum. In 1982 the Royal Monetary Authority of Bhutan (RMA) was established to act as the central bank of Bhutan. The RMA commenced its operations in 1983, when it assumed liability for all notes and coins previously issued by the Ministry of Finance.
Denomination of Banknotes
and Coins in Bhutan:
At present, notes in Bhutan are issued in the
denominations of Nu.1,Nu.5, Nu.10, Nu.20, Nu.50, Nu.100, Nu.500
and Nu.1000. The printing of notes in the denominations of Nu.2 has
been discontinued, and the Nu.1 denomination has been coinised. However,
such notes issued earlier which are still in circulation are still considered
legal tender.
Coins are available in denominations of Ch.5, Ch10, Ch.25, Ch.50
and Nu.1.
Currency Management:
The various denominations of banknotes and coins
are decided by the RMA's Board of Directors on the advice of the RMA.
The designs and security features of the banknotes and coins are also
proposed by the RMA and subject to approval by the Board of Directors.
The RMA estimates the quantities of notes and coins of different denominations
that are likely to be needed, and after obtaining the approval of the
Board, invites tenders from renowned international security printing
companies and mints. The notes and coins received from the printers
are stored in the vaults and issued to the banks and the public on request.
Notes and coins returned from circulation by the banks and the public
are examined and only notes and coins which are fit for circulation
are reissued. "Soiled and mutilated" notes are destroyed by
shredding so as to maintain the quality of the notes in circulation.
Refund of soiled and mutilated
notes:
Soiled notes are those which have become dirty
and limp due to use, and mutilated notes are those which are torn, disfigured,
burnt etc. Such notes can be exchanged at the RMA. Full value is payable
against soiled notes. Payment of value against mutilated notes is made
in accordance with the Note Refund Rules which have been framed by the
Board of Directors under Section 21 (9) of the RMA Act.General features
of bank notes.
The first series of banknotes issued by the Ministry of Finance and
the Bank of Bhutan were all of the same size, irrespective of the denomination.
However, this sometimes made it difficult for the largely rural population
to differentiate between the denominations.
NGULTRUM FIVE (5)
Size: 13.0 x 6.2 cm
Paper quality: 100 % cotton
Security
feature:
Watermark: Running along the border
of notes at the top and bottom showing part of the wording "Royal
Monetary Authority.
Intaglio Printing: The name of the Issuing Authority
ie Royal Monetary Authority of Bhutan on the face of the note in Dzongkha
and in English on the reverse, denomination in English and Dzongkha,
guarantee and promise clause, RMA Chairman's signature are printed in
intaglio i.e. in raised prints, which can be felt by touch.
Fluorescence: Fluorescence fiber yellow which is not
visible to naked eye but visible only under ultraviolet light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TEN (10)
Size: 14.0 x 7.0 cm.
Paper: 100 % cotton.
Security
feature:
Watermark: Running along the border
of notes at the top and bottom showing part of the wording "Royal
Monetary Authority.
Security Thread: Contain a plain,
fully embedded security thread on the left side of the notes.
Intaglio Printing: The name of the
Issuing Authority ie Royal Monetary Authority of Bhutan on the face
of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence: Fluorescence fiber yellow
which is not visible to naked eye but visible only under ultraviolet
light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TWENTY (20)
Size: 15.2 x 7.0 cm.
Paper quality: 100% cotton.
Security
feature:
Watermark: Running along the border
of notes at the top and bottom showing part of the wording "Royal
Monetary Authority".
Security Thread: Contain a plain,
fully embedded security thread on the left side of the notes.
Intaglio Printing: The name of the
Issuing Authority ie Royal Monetary Authority of Bhutan on the face
of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence: Fluorescence fiber yellow
which is not visible to naked eye but visible only under ultraviolet
light.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM
FIFTY (50)
Size: 15.5 x 7.0cm
Paper Quality: 100 % cotton.
Security
feature:
Watermark:
Running along the border of notes at the top and bottom showing part
of the wording "Royal Monetary Authority".
Security Thread:Contain
a plain, non-readable fully embedded security thread on the left side
of the notes.
Intaglio Printing:
The name of the Issuing Authority ie Royal Monetary Authority of Bhutan
on the face of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence:
Fluorescence fiber yellow which is not visible to naked eye but visible
only under ultraviolet light.
See through Register:Contain
small floral design printed in precise register on both sides of the
notes . When the note is held up to the light, part of the design printed
on the back will fit exactly within unprinted areas on the front, or
alternatively printed areas of two designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM HUNDRED (100)
Size: 16.1 x 7.0 cm
Paper Quality:100 % cotton.
Security feature:
Watermark:
Crossed Dorji (Dorji jardrum) watermark with a light and shade effect
in the watermark window on the left side of the note.
Security thread:
Windowed security thread alternately visible on the obverse with the
inscriptions 'RMBA' , but totally embedded on the reverse. When held
against the light, the window security can be seen as one continuous
line.
Intaglio Printing:
The name of the Issuing Authority ie Royal Monetary Authority of Bhutan
on the face of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence:
Fluorescence fiber yellow which is not visible to naked eye but visible
only under ultraviolet light.
See through Register:Contain
small floral design printed in precise register on both sides of the
notes . When the note is held up to the light, part of the design printed
on the back will fit exactly within unprinted areas on the front, or
alternatively printed areas of two designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM
FIVE HUNDRED (500)
Size: 16.0 x 7.0cm
Paper Quality:100 % cotton.
Security
feature:
Watermark:
Crossed Dorji (Dorji jardrum) watermark with a light and shade effect
in the watermark window on the left side of the note.
Security thread:
Windowed security thread alternately visible on the obverse with the
inscriptions 'RMBA' , but totally embedded on the reverse. When held
against the light, the window security can be seen as one continuous
line.
Intaglio Printing:
The name of the Issuing Authority ie Royal Monetary Authority of Bhutan
on the face of the note in Dzongkha and in English on the reverse, denomination
in English and Dzongkha, guarantee and promise clause, RMA Chairman's
signature are printed in intaglio i.e. in raised prints, which can be
felt by touch, in all denomination of notes.
Fluorescence:
Fluorescence fiber yellow which is not visible to naked eye but visible
only under ultraviolet light.
See through Register:Contain
small floral design printed in precise register on both sides of the
notes . When the note is held up to the light, part of the design printed
on the back will fit exactly within unprinted areas on the front, or
alternatively printed areas of two designs may coincide perfectly.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM ONE (1)
Size: 120 x 60 mm
Paper quality: 100 % cotton.
Security
feature:
Lithographic: Anti-scanner and anti-copier line structure Micro lettering
Intaglio : Incorporated Guilloches Micro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5. Intaglio line
front "Royal Monetary Authority of Bhutan". Measured tactility
shall vary from letter to letter within the text line without variation
of color.Optically variable intaglio latent image characterized by several
embossed design elements in combination with background printed patterns.
When the banknote is held at different angles, the denomination figure
will appear dark on light background or light on dark background depending
on the angle of vision.
Letterpress : Black magnetic serial numbers.
Phosphorescent block (Front side only)
Flexographic : Two layer varnishes applied on front and reverse side
to prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIVE (5)
Size: 125 x 60 mm
Paper quality:100 % cotton.
Security features:
Lithographic: Rainbow printing,Rainbow printing with fluorescence (reverse
side only) Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5.Intaglio line
front„Royal Monetary Authority of Bhutan“: measured tactility
shall vary from letter to letter within the text line without variation
of colour.Optically variable intaglio latent image characterized by
the superimposition of several embossed design elements in combination
with background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers. Phosphorescent block (front
side only)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TEN (10)
Size: 125
x 65 mm
Paper quality:100
% cotton.
Security
feature:
Lithographic: Rainbow printing Rainbow printing with fluorescence (reverse
side only)Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5. Intaglio line
front„Royal Monetary Authority of Bhutan“: measured tactility
shall vary from letter to letter within the text line without variation
of colour.Optically variable intaglio latent image characterized by
the superimposition of several embossed design elements in combination
with background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.Phosphorescent
block (front side only)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling
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Design:
Obverse
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Design:
Reverse
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NGULTRUM TWENTY (20)
Size: 132
x 65 mm
Paper quality:100
% cotton.
Security
feature:
Lithographic: Rainbow printing Rainbow printing with fluorescence (reverse
side only) Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated GuillochesMicro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5. Intaglio line
front„Royal Monetary Authority of Bhutan“: measured tactility
shall vary from letter to letter within the text line without variation
of colour.Optically variable intaglio latent image characterized by
the superimposition of several embossed design elements in combination
with background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.
Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIFTY (50)
Size: 139
x 65 mm
Paper quality:100
% cotton.
Security feature:
Lithographic: Rainbow printing Rainbow printing with fluorescence (reverse
side only) Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated Guilloches Micro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5. Intaglio line
front "Royal Monetary Authority of Bhutan“: measured tactility
shall vary from letter to letter within the text line without variation
of colour.Optically variable intaglio latent image characterized by
the superimposition of several embossed design elements in combination
with background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.Phosphorescent block (front
side only)
Offset/Flexographic: Two layer varnish applied on front and reverse
side to prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM HUNDRED (100)
Size: 146 x 70 cm
Paper quality: 100 % cotton
Security
feature:
Lithographic: Rainbow printing
Rainbow printing with fluorescence (reverse side only)
Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated Guilloches Micro Text
Recognition Feature for the Blind: measured tactility has to meet 70
microns + 5.
Intaglio line front„Royal Monetary Authority of Bhutan“:
measured tactility shall vary from letter to letter within the text
line without variation of colour.Optically variable intaglio latent
image characterized by the superimposition of several embossed design
elements in combination with background printed patterns. When the banknote
is held at different angles, the denomination figure will appear dark
on light background or light on dark background depending on the angle
of vision.
Letterpress: Black magnetic serial numbers.
Phosphorescent block (front side only)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM FIVE HUNDRED(500)
Size: 1153
x 70 mm
Paper quality: 100 % cotton
Security
feature:
Lithographic: Rainbow printing
Rainbow printing with fluorescence (reverse side only)Anti-scanner and
anti-copier line structure Microlettering
Intaglio: Incorporated Guilloches Micro Text Recognition Feature for
the Blind: measured tactility has to meet 70 microns + 5.Intaglio line
front„Royal Monetary Authority of Bhutan“: measured tactility
shall vary from letter to letter within the text line without variation
of colour.Optically variable intaglio latent image characterized by
the superimposition of several embossed design elements in combination
with background printed patterns. When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.Phosphorescent block (front
side only)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling.
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Design:
Obverse
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Design:
Reverse
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NGULTRUM
THOUSAND(1000)
Size: 165 x 70 mm
Paper quality: 100 % cotton
Security
feature:
Lithographic: Rainbow printing
Rainbow printing with fluorescence (reverse side only)
STAR® Anti-scanner and anti-copier line structure Microlettering
Intaglio: Incorporated
Guilloches Micro Text Recognition Feature for the Blind: measured tactility
has to meet 70 microns + 5.Intaglio line front„Royal Monetary
Authority of Bhutan“: measured tactility shall vary from letter
to letter within the text line without variation of colour. Optically
variable intaglio latent image characterized by the superimposition
of several embossed design elements in combination with background printed
patterns. (PEAK® feature)When the banknote is held at different
angles, the denomination figure will appear dark on light background
or light on dark background depending on the angle of vision.
Letterpress: Black magnetic serial numbers.Phosphorescent block (front
side only)
Silkscreen: Iridescent band (PEAK® feature and FIT-Medal® feature)
STEP® feature (colour shift)
Flexographic: Two layer varnish applied on front and reverse side to
prevent soiling(TOPNote®)
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Design:
Obverse
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Design:
Reverse
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Glossary of the basic security features
in the 2006 & 2008 series:
1.
Banknote paper – 100% cotton for quality and durability.
2. Intaglio Microlettering – Raised wording printed in a small
type that looks like a plain solid line to the naked eye but legible
under magnification. This feature is represented by the line running
horizontally parallel to the name of the Issuing Authority i.e. Royal
Monetary Authority of Bhutan in Dzongkha on the obverse of the note
and in English on the reverse.
3. Tactile wordings (Intaglio Printing) – The text reading the
name of the issuing Authority “Royal Monetary Authority of Bhutan”
in Dzongkha on the obverse and in English on the reverse can be felt
with fingers as they are raised rendering the texts more tactile.
4. Numbering with magnetic ink – Serial number with even alignment
and thickness with magnetic component for machine readability.
5. Recognition feature for the blind - The high relief marks to help
blind people feel and recognize different denominations.
6. Signature of Chairman – Lyonpo Wangdi Norbu on all denominations
except on Nu.1000 which is Lyonpo Kinzang Dorji.
7. Line modulated screens - Shows traditional Bhutanese pattern formed
through printed lines that are very fine and close together resulting
in a shimmery effect.
8. Embedded security thread - A security thread is a strip of material
within the body of the note which runs from one long edge to the other.
Its presence may be verified by holding the banknote up to transmitted
light.
9. Letterpress Microlettering – Wording printed in a small type
that looks like a plain line to the naked eye, but legible under magnification.
This feature is present in the vertical short edges of the notes.
10. Peak showing denominational figure – Printed in the off-center
of the note as a PEAK, and shows denomination of the note both in Dzongkha
and English numerals when viewed at a certain angle.
11. 3-dimensional mould watermark – Shows the portrait of his
Majesty the King Jigme Singye Wangchuck in the window. The watermark
is created as the paper is made and is therefore an integral part of
the paper, produced using a special mould which is made to the customer's
own design. A faint image that is part of the paper itself and is visible
from both sides when the bill is held up to the light.
12. Security Window thread – A thread alternatively visible on
the obverse with the inscriptions ‘RMA’, but totally embedded
on the reverse. The window security thread can be seen as one continuous
line when held against the light.
13. Iridescent stripe – It is a shimmery stripe printed across
the reverse of the note with special ink and the colour of the stripe
changes from different viewing angles.
Summary of changes incorporated in the 2006 &2008 series of Ngultrum notes:
While the basic designs, in terms of the basic motifs, i.e., portrait on the front and a Dzong on the reverse, have been kept unchanged so as to feature standard design and give a traditional appearance to the notes in the case of existing notes, changes have been mainly focused on improving the overall appearance of the notes in terms of colour schemes and security features.
I.
Changes common to all denominations:
1. Removal of light borders – The light borders along the entire
backdrop have been removed and replaced with line-modulated screens
showing traditional Bhutanese patterns.
2. Anti-copier feature – (FIT technology & PEAK effect) A
technology which produces intaglio-printing plates with a computer controlled
drilling machine instead of etching by hand. Intaglio plates produced
with FIT technology are more precise and offer a better tactility in
the notes. Under the PEAK effect, the PEAK area shows either the denomination
of the respective note or a decorative area depending on the angle of
view.
3. Differing sizes of the notes – The sizes of different denominations
in the new series are slightly smaller because of economic reasons and
to facilitate better distinction between different denominations. The
side of notes increase with denominations.
4. Colour scheme – Each denomination is in a specific colour for
easy visual recognition.
5. Watermark – The Royal Crest in Nu. 10 & Nu.20 denominations
and the image of Dorji Jadram in Nu.100 & Nu.500 denominations have
been substituted with the portrait of the 4th King and Nu.50 denomination
have the 5th king portrait.
6. The prefixes to the note serial number – To facilitate easy
and convenient identification of the proposed series from the earlier
series, distinctive prefixes (denomination-specific) have been allocated
to the present series. It starts with letter “I” for Nu.1
denomination and ends with letter “P” for Nu.500 denomination.
7. Wording “Series 2006” – in order to render the
proposed series distinct from the earlier series, all denominations
of the proposed series will bear the word “Series 2006”
next to the horizontal note serial number on the obverse.
8. Recognition features for the visually impaired – This feature
has been incorporated in all denominations in intaglio print technique
and is highly embossed, thus making it very tactile.
9. Security thread – Except for Nu.1 denomination, all denominations
have embedded security thread. In the earlier series Nu.5 denomination
did not have security thread.
10. Name, title & signature of RMA Chairman – All denominations
bear the name, title and the signature of the current Chairman of RMA
Board of Directors.
11. Promise clause – Promise clause has been removed in accordance
with practices in other countries.
12. Top note varnish – One of the major improvement in the new
series is that the notes are soil resistant as the notes bear, on both
sides, coating of two layer varnish .
Soiling is by far the main reason limiting the circulation life of any
currency note and varnishing is believed to extend the note life by
around 200%. Other advantages offered by top note varnishing system
are:
• Helps minimize the risk of counterfeiting as varnishing helps
prolong the life of note and thereby retaining the security features
more distinguishable over longer span of time.
• Top note repels dirt thereby rendering of varnished notes less
hazardous to public.
• It is environmentally compatible as it does not generate harmful
substances as in the case of polymer substrates.
• The enhanced circulation life of topnote also reduces the overall
costs relating to issuance, withdrawal and destruction of the notes.
II. Changes specific to each denomination:
1. Nu.1
denomination:
• Paper grammage in respect of this denomination has been kept
at 100 grams per square meter (gsm) ± 5 % for higher durability
and 1 lithographic print (all other denominations have 4 lithographic
print on each face) for reasons of economy.
2. Nu. 5 denomination:
• The image of Paro Rinpung Dzong is replaced with the image of
Paro Takshang. (Paro Rinpung Dzong appears on the reverse of Nu.10 denomination)
• Royal crest has been replaced by the image of DeyNga (The five
offerings of sensory enjoyment) in the centre with two mythical birds
(Bja Tshering – the bird of long life) at both right and left
sides.
3. Nu. 10 denomination:
• Portrait of His Majesty replaced with a more recent one.
4. Nu. 20 denomination:
• Portrait of third king replaced with a different one
• The image of Punakha Dzong on the reverse replaced with the
image of the recently renovated Punakha Dzong.
5. Nu.50 denomination:
• Portrait of third kind replaced with portrait of second king.
6. Nu.100 denomination:
• Portrait of His Majesty replaced with a more recent portrtait.
• Image of Tashichho Dzong on the reverse replaced with a more
recent image of Tashichho Dzong.
7. Nu. 500 denomination:
• The image of the medal and the ribbon around the neck of the
portrait has been removed.
CHETRUM
(COINS)
*Minting of Chetrum 10 & 5 has been discontinued,
as per the recommedation of Board of Directors.
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Legal
provisions against counterfeiting:
Printing and circulation of forged notes are
offences under Part V Sections 21(3) of the RMA Act 1982 and are punishable
in the courts of law by fine or imprisonment.