OBJECTIVES

As per Section (7, 8, & 9) of the RMA Act 2010, objectives of the Royal Monetary Authority are to:

  1. Formulate and implement monetary policy with a view to achieving and maintaining price stability;
  2. Formulate and apply financial regulations and prudential guidelines to ensure the stability and integrity of the financial system, as empowered by this Act or by any other Act;
  3. Promote an efficient financial system comparable to international best practices;
  4. Promote, supervise and, if necessary, operate national and international payment and settlement system including electronic transfer of funds by financial institutions, other entities and individuals;
  5. Promote sound practices and good governance in the financial services industry to protect it against systemic risk; and
  6. Promote macro-economic stability and economic growth in Bhutan.
FUNCTIONS

In pursuance of its objectives, the functions of the Royal Monetary Authority are to:

  1. Issue currency;
  2. Act as banker, adviser and financial agent to the Royal Government;
  3. Make regulations covering any payment and settlement system or a component thereof including electronic transfer of funds;
  4. Act as banker to the banks;
  5. Manage gold, foreign exchange and other international reserves of Bhutan;
  6. Make foreign exchange regulations;
  7. Issue licenses to financial institutions to carry on financial services; and
  8. Make regulations for the better carrying-out of the purposes and provisions of this Act, and any other Act administered by the Authority.